Features and benefits of loan against insurance policies
How to apply for a Loan against Securities
If you're looking to apply for a loan against the securities you own, follow the simple steps mentioned in this video
-
Loans up to Rs. 25 crore *
Finance a diverse range of needs with funds up to Rs. 25 crore * against your ULIP policies.
-
Funding against policies under lock-in period
We cover your immediate liquidity needs even if the insurance policy is under lock-in period.
-
Get loan while keeping your insurance coverage intact
Get loans against your unit-linked insurance policy to meet your liquidity needs without having to surrender your policy. So, your insurance coverage and investment benefits remain intact.
-
Flexi loan against ULIP policies
Get a flexi loan against a Unit Linked Insurance Plan (ULIP). Make multiple withdrawals from your total sanctioned amount and pay interest only on the amount utilised.
-
Pay interest on completion of policy lock-in period
For loan against policies which are under lock-in period, you can repay the principal and interest amount together after the completion of the lock-in period.
-
Pre-approved loan limit
Get a minimum loan of Rs. 10,000 and maximum of up to Rs. 25 crore. This is applicable for a minimum tenure of 7 days and a maximum of 96 months.
-
Easy prepayments
Flexible prepayment and foreclosure options let you prepay or foreclose your loan at no additional charges.
-
Apply with minimal documents
You only need to submit Officially Valid Document (OVD) for ID and address proof, bank account proof, and document proof of the insurance policy to apply for a loan.
Eligibility criteria and documents required
You can apply for our loan against insurance policies online if you meet the basic criteria mentioned below*. After meeting the criteria, you will need a set of documents to complete your application process.
Eligibility criteria
- Age: 18 to 65 years
- Minimum surrender value of policy: Rs. 30,000
- Employment: salaried or self-employed
- Must have an active ULIP policy of either Bajaj Allianz Life, ICICI Prudential, Max Life, TATA AIA, or Aviva India
- Nationality: Indian
Documents required**
- One copy of your recent photograph
- Aadhaar card/ passport/ voter’s ID as address proof
- PAN card
- Insurance policy document
- Bank account statement/ copy of a cheque as bank account proof
- Any other document as may be required by Bajaj Finance Ltd.
**Please note that the list of documents mentioned here is indicative. You will be notified on the complete list of documents required by our representative while filling the application form.
A step-by-step guide to apply for 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.
Applicable fees and charges
Types of fees |
Charges applicable |
Processing fees |
Up to Rs. 1,00,000/- (inclusive of applicable taxes) |
Prepayment charges |
Full prepayment - Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment |
Annual maintenance charges |
Up to Rs. 2,950/- (inclusive of applicable taxes) to be collected on renewal |
Bounce charges |
In case of default of repayment instrument, Rs. 1200/- per bounce will be levied |
Penal interest |
Delay in payment of Monthly instalment shall attract penal interest up to 3% per month on the Monthly Instalment outstanding, from the respective due date until the date of receipt |
Stamp duty |
Payable as per state laws |
Legal charges |
At actuals |
Frequently asked questions
If you need some financial help and looking for availing a loan, you can get a loan against your 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. Loan against Insurance Policy is given only against Unit-linked plans (ULIPs).
A processing fee of Rs. 1,180 (inclusive of applicable taxes) is applicable for loans below Rs. 1 lakh. For loans above Rs. 1 lakh, a processing fee of Rs. 1,475 (inclusive of taxes) is applicable**.
1. 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 entirety of an outstanding dues under the loan amount at maturity.
2. 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:
- One copy of your recent photograph
- 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 call the customer centre at 1800-123-2557 or write to us at Laip.care@bajajfinserv.in for any loan against insurance policy-related service requests.
All loans are processed by Bajaj Finance Limited.
In case the loan is availed, the policy will be assigned in favour of Bajaj Finance. There are two ways of closing the loan –
1.You can repay the total outstanding in Bajaj Finance Limited designated bank account. Post receipt of payment, loan account shall be closed and policy will be assigned back to you.
2.You can repay is repaying via surrendering the policy. Basis your request, the insurance company will surrender the policy and the surrender value will be transferred to Bajaj Finance Ltd., since the policy is assigned to them. Bajaj Finance will adjust s the loan amount and refund the surplus (if any) to the you and close the loan account.
Policy surrender will be at the discretion of the lender only.
Any intimation regarding premium payments is sent directly to the client by the insurance company.