Application Form for LIC Loan Against Policy

A LIC Loan Against Policy allows policyholders to borrow money against the surrender value of their Life Insurance Corporation (LIC) policy. This financial product offers a convenient way for individuals to access funds without having to liquidate their policy. Below is a detailed guide on how to fill out the application form for an LIC Loan Against Policy, including all necessary steps, required documents, and eligibility criteria.

1. Introduction to LIC Loan Against Policy
LIC provides a loan facility where policyholders can use their insurance policies as collateral. This type of loan is useful for meeting urgent financial needs while keeping the policy active.

2. Eligibility Criteria
To be eligible for a LIC Loan Against Policy, applicants must meet the following criteria:

• Policy Status: The policy should be in force and should have acquired a surrender value.
• Policy Duration: The policy should be at least 3 years old.
• Policy Type: Loans can be taken against various types of policies, including endowment policies, money-back policies, and whole life policies.

3. Required Documents
When applying for an LIC Loan Against Policy, you will need to provide the following documents:

• Policy Document: A copy of the LIC policy document.
• Identity Proof: Government-issued ID (e.g., passport, driver's license, Aadhar card).
• Address Proof: Utility bills, bank statements, or a rental agreement.
• Photograph: Recent passport-sized photograph.
• Loan Application Form: Completed LIC loan application form.

4. Filling Out the Application Form
Here’s a step-by-step guide on how to fill out the LIC Loan Against Policy application form:

4.1. Personal Details
Fill in your personal details, including:

• Name: Full name as per official documents.
• Address: Permanent and current address.
• Contact Details: Phone number and email address.
• Occupation: Your current occupation or job title.
• Date of Birth: As mentioned in your identity proof.

4.2. Policy Details
Provide information about your LIC policy, including:

• Policy Number: The unique number assigned to your policy.
• Policy Type: Endowment, money-back, or whole life.
• Sum Assured: The amount guaranteed under the policy.
• Date of Issue: The date when the policy was issued.
• Current Value: The current surrender value of the policy.

4.3. Loan Details
Specify the details of the loan you are applying for:

• Loan Amount: The amount you wish to borrow.
• Purpose of Loan: Briefly describe the reason for taking the loan.
• Repayment Period: The duration over which you plan to repay the loan.

4.4. Declaration and Signature
Read the terms and conditions carefully. Ensure that all information provided is accurate. Sign the form to declare that you agree with the terms and conditions of the loan.

5. Submission Process
After filling out the application form and attaching the necessary documents:

• Submit the Application: You can submit the completed application form at the nearest LIC branch.
• Processing Time: The processing time for a loan against a policy is usually 7-10 working days, depending on the branch.

6. Loan Disbursement
Upon approval, the loan amount will be disbursed to your bank account. Ensure you provide accurate bank details for a smooth transaction.

7. Repayment Terms
The loan repayment can be made through:

• EMI: Equated Monthly Installments.
• Lump Sum: Full repayment in a single payment, if preferred.

8. Interest Rates and Charges
LIC charges interest on the loan amount, which varies based on the policy and loan amount. Make sure to check the current interest rates and any applicable fees before applying.

9. Benefits of LIC Loan Against Policy

• Retention of Policy: You do not have to surrender your policy.
• Quick Processing: Fast approval and disbursal of funds.
• Flexible Repayment: Various options for repayment, including EMI and lump sum.

10. Conclusion
Applying for a LIC Loan Against Policy is a convenient financial solution for policyholders needing immediate funds. By following the detailed guide above, you can ensure a smooth application process and make the most of your LIC policy’s benefits.