How to Apply for LIC Loan Online

Need quick funds but do not want to break your savings or investments? If you have been paying for a LIC life insurance policy, it might be the lifeline you didn’t know you had. Many people are surprised to learn that their LIC policy is not just for long-term protection it can also offer instant financial help in emergencies. Whether it’s for medical bills, business needs, or a short-term cash crunch, you can apply for a loan against your LIC policy easily often without visiting a branch. And yes, you can do it all online.

Thinking of using your insurance as a financial safety net? Get a loan against your LIC ULIP or endowment policy with minimal paperwork. Explore policy loan options

Eligibility criteria for LIC loan online

Before applying for a loan against your LIC policy, make sure you meet these simple eligibility conditions:

• Policy type: The loan is only available against ULIP or endowment policies. Term insurance, whole life, or money-back plans are not eligible.
• Policy status: Your LIC policy must have acquired a surrender value (generally after 3 years of premium payment).
• Policyholder: Only the policyholder or an authorised nominee can apply for the loan.
• Age: You must be at least 18 years old at the time of application.
• Repayment history: If you've taken a previous loan against your policy, it must be repaid or within the permissible loan value.

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How much loan can you get against your LIC policy?

The loan amount you can get depends on the surrender value of your LIC policy. Typically, LIC allows loans of up to:

• 90% of the surrender value for in-force policies (where premiums are paid regularly)

So, if your policy has a surrender value of Rs. 2 lakh, you may get a loan of up to Rs. 1.8 lakh.

Want to know your eligible loan amount? Use our online tool to check how much you can borrow against your LIC ULIP or endowment policy. Check loan against insurance policy

LIC loan interest rates and charges in 2025

LIC charges competitive interest rates on policy loans. As of 2025, here is what you need to know:

• Interest rate: Usually ranges from 8% to 24% per annum (subject to change based on policy and market conditions).
• Interest calculation: Interest is calculated half-yearly, not monthly.
• Other charges: There may be nominal processing or documentation fees, especially for offline applications.

Remember, unpaid interest gets added to the principal, which may reduce the final maturity value if the loan isn’t repaid.

Required documents for LIC loan online application

To apply for a LIC policy loan online, keep these basic documents ready:

• Your LIC policy number and policy bond
• PAN card (for KYC)
• Aadhaar card or another government-approved ID proof
• Cancelled cheque or bank account details (for loan disbursal)
• If applicable, an income proof or recent premium receipts (in rare cases)

No need to submit physical copies if you are applying online via the customer portal, soft copies or details are often enough.

Step-by-step: Applying for LIC loan via customer portal

Here’s how you can apply for your loan against LIC policy online:

1. Register on the LIC customer portal if you haven't already.
2. Log in with your credentials.
3. Go to the loan section under your policy details.
4. Select the eligible policy and click ‘Apply for Loan’.
5. Fill in the required fields (amount, tenure, bank account).
6. Upload documents (if prompted).
7. Accept terms and digitally sign the loan form.
8. Submit the application.

Once verified, the loan amount is typically credited within 2 to 5 working days.

Offline vs online LIC loan application - Comparison

Here is a quick look at how online and offline LIC loan applications differ:

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To apply for loans online, you must first enrol for LIC’s premier services. Here's how:

1. Visit the LIC website and click on “Customer Portal”.
2. Register as a new user or log in.
3. Under "Premier Services," click ‘Apply Now’.
4. Upload a scanned image of your policy bond and ID proof.
5. Submit a request for activation—an acknowledgement will be sent.
6. Once verified (usually within 48 hours), you can access full online services, including loan facilities.

LIC loan repayment options and how they work

Repaying your LIC loan is quite flexible. Here's what you need to know:

• Interest-only repayment: You can repay only the interest periodically and repay the principal later.
• Full repayment anytime: You can repay the loan in full anytime during the policy term.
• Auto deduction: You can opt to deduct the loan amount from the final maturity or death claim if not paid earlier.

Repayment can be made via the LIC portal, mobile app, or by visiting a branch.

Benefits of taking a loan against LIC policy

Here is why a LIC loan can be a good idea in financial emergencies:

• Quick disbursal: Funds are usually transferred within a few days.
• Lower interest rates: Much cheaper than unsecured personal loans.
• No income proof required: Your policy is the collateral.
• No credit score check: Doesn't affect your CIBIL score.
• Flexible repayment: Choose when and how to repay.

And the best part? Your policy continues to offer life coverage while the loan is active.

Important tips before applying for LIC loan online

To make the most of your LIC loan, keep these tips in mind:

• Check if your policy type is eligible (only ULIP or endowment plans).
• Always repay interest on time to avoid it being added to the principal.
• Avoid taking multiple loans against the same policy unless needed.
• If your policy is close to maturity, plan repayment to avoid deductions.
• Save a digital copy of your loan application for future reference.

Conclusion

If you have been wondering how to apply LIC loan online, the process is easier than ever. As long as your ULIP or endowment policy has a good surrender value, you can borrow against it without breaking your investments or running after banks. Whether you apply via the LIC portal or use trusted partners, LIC policy loan is a smart way to manage short-term needs with long-term security still intact.

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