How to apply for a Loan Against Insurance Policy?
Loan against insurance policy apply process
Enter personal details
Provide basic information such as your name, PAN and date of birth.Verify contact details
Confirm your email ID to proceed further.Add policy information
Share your insurance policy details to assess eligibility.Check loan offer
A personalised loan offer is generated based on your policy value.Complete KYC verification
Finish KYC to enable sanction letter generation.Set up e-mandate
Register an e-mandate for seamless EMI repayments.Accept loan agreement
Digitally approve the loan terms and give consent.Submit policy for verification
Your policy is verified to finalise the loan amount.Receive funds
Once verified, the loan amount is credited to your bank account.
Features and benefits of loan against insurance policy
Read on to know why you should opt for our loan against insurance policies
Features and Benefits of Bajaj Finance Loan Against Insurance Policy
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Loans up to ₹25 crore*
Finance a diverse range of needs with funds up to ₹25 crore* against your endowment and ULIP policies.
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Funding against policies under lock-in period
We cover your immediate liquidity needs even if the insurance policy is under lock-in period.
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Get loan while keeping your insurance coverage intact
Secure a loan against your endowment and unit-linked insurance policy to meet your liquidity needs without surrendering your policy. This ensures your insurance coverage and investment benefits remain intact.
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Flexi loan against endowment and ULIP policies
Get a flexi loan against an endowment and Unit Linked Insurance Plan (ULIP). Make multiple withdrawals from your total sanctioned amount and pay interest only on the amount utilised.
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Pay interest on completion of policy lock-in period
For loans against policies under a lock-in period, you can repay the principal and interest amount together after the lock-in period ends.
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Pre-approved loan limit
Access a minimum loan of Rs. 10,000 and a maximum of up to ₹25 crore. This is applicable for the minimum tenure of 7 days to the maximum tenure of up to 96 months (Loan will mature at the end of the month). Get loan of up to 50% on policies against surrender value.
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Easy prepayments
Flexible prepayment and foreclosure options allow you to prepay or foreclose your loan without additional charges.
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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 for loan against insurance policy
Anyone can apply for a loan against insurance policy online, as long as they meet the basic criteria mentioned below. Also keep a few documents handy while applying for loan against insurance policy.
Eligibility Criteria and Documents Required for Bajaj Finserv Loan Against Insurance Policy
Eligibility criteria
Nationality | Indian |
Age | 21 years to 90 years (Co-borrower in case of a customer who is more than 70 years of age) |
Employment | Salaried, self-employed |
Policy requirement | Must have an active Endowment or ULIP policy of either Bajaj Life Insurance Limited, ICICI Prudential Life Insurance Company Limited, TATA AIA Life Insurance Company Limited, IndusInd Nippon Life Insurance Company Limited, Aviva Life Insurance Company India Limited, Edelweiss Life Insurance Co. Ltd, HDFC Life Insurance Company Limited. |
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.
Applicable fees and charges for loan against insurance policy
Frequently asked questions
Overview
Repayment
EMI
Eligibility
Charges
What is loan against insurance policy?
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.
Can we take loan against insurance policy?
The eligibility criteria for obtaining a loan against your insurance policy are more relaxed compared to other types of loans. It depends on the type of insurance policy you own and whether it is approved for a loan by the lender. Loans are available against Endowment and Unit-Linked Insurance Plans (ULIPs).
How much time does it take to process a loan against insurance policy?
Processing a loan against an insurance policy takes approximately 24 hours, subject to the submission of all required documents.
To whom will the policy be assigned, if one decides to get a loan against insurance policies?
The policy must be assigned in favour of Bajaj Finance Limited.
What is surrender value?
Surrender value is the amount your insurer pays if you terminate a life insurance policy before maturity. It reflects premiums paid, tenure completed, and bonuses accrued. This value also determines the eligible loan amount when taking a loan against your insurance policy.
If I repay my loan amount after 6 PM, when will it be adjusted in my loan account?
If you repay your loan amount after 6 PM, the repayment will be adjusted in the loan account on the next business day. Payments made before 6 pm on any business day, the same will be adjusted in the loan account, on same day.
Example: If you make a repayment at 7 PM on a Tuesday, it will be adjusted in your account on Wednesday (assuming Wednesday is a business day).
What happens if I make a payment after 3 PM on the last business day of the month?
If you make a payment after 3 PM on the last business day of the month, the repayment will be adjusted in your loan account on the next business day. This is to ensure that end-of-month processing is completed smoothly.
Example: If the last business day of the month is Friday and you make a payment at 4 PM, the repayment will be adjusted on Monday (assuming Monday is a business day).
Is the principal amount convertible to EMI?
No, the principal amount cannot be converted to EMIs.
Is partial withdrawal allowed during the subsistence of the loan?
Yes, partial withdrawal is allowed during the loan’s subsistence, subject to successful verification by the lender. Bajaj Finance reserves the right to deny partial withdrawal requests at its sole discretion.
Whom should the customer contact for a service request?
You can call the customer centre at 1800-123-2557 or write to us at Laip.care@bajajfinserv.in for any service requests related to a loan against an insurance policy.
Is the loan processing done by Bajaj Finance or its partner insurance companies?
All loans are processed by Bajaj Finance Limited.
What will be the effect of foreclosure of a loan against an insurance policy?
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 the 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.
Who can surrender the policies against which loans have been availed?
Policy surrender will be at the discretion of the lender only.
Who initiates the communication for premium payment details?
Any intimation regarding premium payments is sent directly to the client by the insurance company.
Can a policyholder with multiple ULIP policies, avail loan against all policies in one go?
Yes, a policyholder with multiple ULIP policies can avail of a loan against all policies in one go, subject to the assignment of all the policies in favour of Bajaj Finance.
What is the minimum amount for a loan against an insurance policy?
- The minimum loan amount is usually Rs. 25,000.
- Some lenders may set slightly higher thresholds depending on the policy type and terms.
- The loan value depends on the policy’s surrender value and premium payment record.
- You can only against ULIP and, not general LIC policies.
What are the processing charges levied by Bajaj Finance Ltd. on the loan against insurance policy?
A processing fee up to 3% (inclusive of applicable taxes) of the loan amount or up to Rs. 10,000 (inclusive of applicable taxes).
When is the interest payable on the loan against insurance policy and how is it calculated?
If the policy is in a lock-in period, a bullet interest payment is made upon completion of the policy’s lock-in period. A bullet repayment is a lump sum payment covering the entirety of outstanding dues under the loan at maturity.
If the policy is out of the lock-in period, interest is calculated and payable monthly.
For policies in the lock-in period, compound interest is charged. For policies outside the lock-in period, simple interest is charged.
What our customers say about us
Trisha Mehrotra Mehra
Reviewed on 13 Nov 2025
Bajaj Finance Loan Against Insurance Policy offered swift processing and flexible repayment options. It was convenient to manage finances during emergencies. Highly recommend for seamless service.
Saloni Jamwal
Reviewed on 14 Nov 2025
Bajaj Finance Loan Against Insurance Policy provided the funds I needed urgently. The process was hassle-free, and repayment terms were flexible, making it ideal for financial emergencies.
Aniket Sharma
Reviewed on 20 Nov 2025
I found Bajaj Finance Loan Against Insurance Policy convenient. The competitive interest rates and easy application process made it the right choice for managing unexpected
Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.