How to apply for a loan against insurance policy
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How To Apply Loan Against Insurance Policy
Step 1: Click on ‘Apply’ at the top of this page to open our online application form.
Step 2: Enter your name, email ID, and mobile number.
Step 3: Under ‘Type of Security’, select Insurance Policy and provide your surrender value.
Step 4: Select your city of residence and after agreeing to the terms and conditions, click ‘Submit’.
You will receive an OTP on the mobile number for verification. Enter the OTP to submit the form.
Once your application form is submitted, our representatives will get in touch with you for further proceedings.
Disbursement shall be done post complying with sanction terms, successful verification of application and policy assignment.
Frequently asked questions
If you need some financial help and looking for availing a loan, you can get a loan against insurance policy. In this case, your insurance policy acts as the collateral against the loan amount.
The eligibility criteria for taking a loan against your insurance policy is relaxed compared to other types of loan. It depends on the type of insurance policy you own and whether it is approved for loan by the lender. Unit-linked plans, endowment plans, and money-back plans are some of the life insurance plans against which the loan can be availed.
A processing fee up to 3% (inclusive of applicable taxes) of the loan amount or up to Rs. 10,000 (inclusive of applicable taxes)** for ULIP policies and 3% for endowment policies.
- If the policy is in a lock-in period, a bullet interest payment will be made on completion of the policy lock-in period. A bullet repayment is a lump sum payment made for the entire outstanding dues under the loan.
- If the policy is out of the lock-in period, the interest is calculated and payable monthly.
In case of lock-in policies, compounding interest is to be charged.
In case of lock-in free policies, simple interest to be charged.
It takes approximately 24 hours to process a loan against an insurance policy. This is subject to the submission of all required documents.
You need to present the following documents to avail of a loan against an insurance policy:
- PAN card
- Aadhaar card/ passport/ voter’s ID for address proof
- Valid insurance policy document
- Bank proof, such as bank account statement or cheque copy
No, you cannot convert the principal amount to EMIs.
Yes, there is an option for partial withdrawal during the subsistence of the loan. However, it is strictly subject to successful verification by the lender. Bajaj Finance holds the right to deny partial withdrawal requests at its sole discretion.
Yes, a policyholder with multiple ULIP policies can avail loan against all policies in one go. This is subject to the assignment of all the policies in favour of Bajaj Finance.
The policy has to be assigned in favour of Bajaj Finance Limited.
You can apply online by clicking 'Apply' on the product page, filling in basic details, and submitting your policy documents. A representative will then contact you to guide you through the remaining steps.
You can avail of a loan against traditional life insurance policies such as endowment and ULIP that have a surrender value and are issued by eligible insurance providers.
To apply, your insurance policy must have a minimum surrender value of Rs. 25,000. This value determines the eligible loan amount you can receive against your policy.
