LIC Personal Loan at very low interest rate, How to apply at

LIC Personal Loan 2023 is a versatile financial product that can provide you with the necessary funds to meet your various personal financial needs.

Citizens who are eligible and interested in can check details and apply for LIC Personal Loan at very low interest rate, How to apply at

In an ever-evolving world, financial needs can crop up unexpectedly, whether it’s for a dream vacation, home renovation, or a medical emergency.

When you’re in need of quick funds, LIC (Life Insurance Corporation) Personal Loan 2023 can be your ultimate financial solution.

In this page, we will explore the ins and outs of LIC Personal Loans for the year 2023, providing you with comprehensive insights on how to access these loans, their benefits, eligibility criteria, and more.

Introduction: In the financial world, LIC needs no introduction. As one of the most trusted and revered names in India’s insurance and financial sector, LIC now extends its helping hand by offering personal loans in 2023.

These loans can serve a variety of purposes and are designed to provide you with quick access to funds when you need them most.

Life Insurance Corporation

Life Insurance Corporation is the largest insurance company in India and apart from various insurance products it also offers its policyholders the option to avail personal loans against their insurance policies.

What is LIC Personal Loan 2023?

LIC Personal Loan 2023 is a flexible and convenient financial product offered by LIC (Life Insurance Corporation of India).

It’s designed to meet various personal financial requirements, such as education expenses, medical bills, or even debt consolidation.

With competitive interest rates and easy repayment options, it’s an attractive choice for those seeking financial assistance.

LIC Personal Loans

LIC Personal Loans are unsecured loans, meaning you don’t need to provide any collateral. These loans are primarily offered to LIC policyholders, making it an attractive option for those who already have insurance coverage with LIC.

These secured personal loans against LIC policy are available at an attractive interest rate starting at as low as 9% and come with a flexible repayment tenure ranging up to 5 years.

You can avail a LIC loan amount up to 90% of the policy’s surrender value to meet various personal financial needs such as medical expenses, marriage, education, etc.,

A life insurance policy is meant to provide financial coverage to one’s dependents in case of an untimely eventuality.

In addition to this benefit, certain types of life insurance policies also allow policyholders to take a loan against the surrender value of the policy.

Keep in mind that you can only borrow a loan against your life insurance policy if your policy has acquired a surrender value.

Life Insurance of India Loan Repayment: You will need to pay interest on the loan amount that you utilise at least twice in a given year.

The principal can be repaid at the completion of the loan tenure or can be adjusted from payouts that you or your nominee may be eligible to receive via the policy.

If you have an LIC policy, borrowing a loan against your policy may be a better option borrowing other types of loans.

That said, ensure that you familiarise yourself with the various terms and conditions of the loan before you submit the application form for the same.

LIC Personal Loan at very low interest rate,
LIC Personal Loan at very low interest rate

LIC Loan Details

LIC LoanDetails
Interest RateStarts from 9%
Loan Tenure5 years
Loan Amount90% of the policy’s surrender value
Pre-payment ChargesNil
Foreclosure ChargesNil
LIC Policy Loan Details

Loan Limits: Under existing rules, the maximum loan amount that can be sanctioned in case of a loan against LIC policy is up to 90% of the surrender value at the time of the application.

In the case of paid-up plans, this limit is lower at 85% of the surrender value. In both cases, this is inclusive of the cash bonus that may be applicable to the life insurance policy used as collateral.

Eligibility Criteria for LIC Loan

The following are some key eligibility criteria for those opting for a loan against LIC policy:

  • Minimum age of the applicant should be 18 years
  • Applicant must have a valid LIC policy
  • The LIC policy used for obtaining loan has guaranteed surrender value
  • At least 3 years of LIC premium has to be paid in full

LIC Personal Loan Interest Rate

LIC personal loan interest rate starts as low as 9%. However, the personal loan interest rate applicable to a particular applicant varies with the person’s individual applicant profile including the person’s income level, nature of employment, loan amount and tenure desired, etc.

EMI Calculation Using Reducing Interest Rate

Given below is a sample of EMI calculations using personal loan EMI calculator (based on the reducing balance method) taking different loan amounts, tenures and interest rates into consideration:

Loan TenureMonthly EMI Payout (Rs.) Monthly EMI Payout (Rs.)
Loan Amount (Rs.) and Interest Rate1 lakh @ 9%5 lakh @ 11%
1-year loan tenure8,74544,191
2-year loan tenure4,56823,304
3-year loan tenure3,18016,369
4-year loan tenure2,48912,923
5-year loan tenure2,07610,871
LIC Personal Loan EMI Calculation Details

How to apply for LIC Personal Loan?

  • In order to apply for the LIC Personal Loan visit the official website of Life Insurance of India.
  • After the home page is opened on the screen of your computer, click on the ‘Online Loan’ under the Online Service (This can be found on the left-hand side).
  • As you click on the ‘Online Loan’ it will lead you to a new page, where you will find two options i.e., Loan Repayment and Online Loan Request.
  • Now you have to log in with your customer ID, password and date of birth.
  • You have to link your bank account number with your policy number so that the loan amount will be auto-credited to the bank account.

Factors Affecting Personal Loan Interest Rates

Here are a few important factors which affect LIC personal loan interest rate:

  • Income Level: The applicant’s income often influences the interest rate charged by the lender. Applicants with higher annual incomes are often charged a lower rate of interest on personal loans as they are perceived to have a better repayment capacity and are less likely to default on repayments and vice versa.
  • Employment Details: Applicants working with reputed organisations and having a stable job and history of employment may be offered a lower rate of interest on personal loans. The interest charged by the lender is also often influenced by the nature of employment of the applicant- whether the person is salaried or self-employed.
  • Relationship with LIC: Having a good existing relationship with LIC – paying your policy premium on time, etc. may help you avail a lower rate of interest on your personal loan.
  • Loan Amount and Tenure Desired: Usually, higher loan amounts and longer repayment tenures come with higher rates of interest and vice versa

How to Get a Loan against an LIC Policy?

If you are eligible to take a loan against your LIC policy, you will need to do as follows to borrow a loan:

  • Visit the nearest branch of a bank.
  • Fill-up the loan application form and submit to the lender’s representatives with the required documents.
  • Existing customers of the bank will need to submit minimal documents.
  • The lender will verify the documents submitted by you, after which your application will be approved.
  • If approved, the loan amount will be disbursed into your savings bank account.

Documents Required to Borrow a Loan against an LIC Policy

A few documents that you will need to submit when borrowing a loan against your LIC life insurance policy are as follows:

  • Original policy document
  • Proof of identity
  • Proof of residence
  • Proof of income
  • Deed of assignment

Frequently Asked Questions (FAQs)

Who is eligible for LIC Personal Loans in 2023?

To be eligible, you should be an LIC policyholder with a policy in force and meet the specified income and age criteria.

What documents are required for the LIC Personal Loan application?

You’ll need proof of identity, residence, income, and your LIC policy documents.

What are the interest rates for LIC Personal Loans?

Interest rates may vary but are generally competitive and lower than traditional bank loans.

Can I apply for an LIC Personal Loan online?

Yes, LIC offers an online application process for your convenience.

Are there any alternatives to LIC Personal Loans?

Yes, you can explore alternatives such as bank personal loans, peer-to-peer lending, or credit cards if you don’t meet LIC’s eligibility criteria


LIC Personal Loans are a promising financial solution for those in need of quick funds. With flexible terms, competitive interest rates, and the trust of LIC, these loans can be a game-changer when it comes to fulfilling your financial aspirations.

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