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: 21 to 90 years (Co-borrower in case of a customer who is more than 70 years of age)
- 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 Pru, Max Life, TATA AIA, or Aviva India
- Nationality: Indian
Documents required
- 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.
Frequently asked questions
If you need some financial help and are looking to avail a loan against insurance policy, you can use your insurance policy as collateral. In this case, your insurance policy acts as security for 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.
It takes approximately 24 hours to process a loan against an insurance policy. This is subject to the submission of all required documents.
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.
The policy has to be assigned in favour of 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 –
- 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.
- You can repay via surrendering the policy. Basis you request insurance company will surrender the policy and the surrender value will be transferred to Bajaj Finance limited. Bajaj Finance will adjust the loan amount, refund the surplus (if any) to you and close the loan account.
Interest is typically calculated on a compounding or simple basis, depending on the insurer. Rates are generally lower than personal loans because the policy’s cash value acts as collateral, providing the lender with security against default.
You generally need the original policy document, identity proof (Aadhaar or PAN), address proof, and a cancelled cheque. Additionally, a deed of assignment is required to legally transfer the policy rights to the lender during the loan term.
Yes, you can leverage multiple eligible policies to secure a higher loan amount. Lenders evaluate the combined surrender value of all assigned policies to determine your total borrowing limit, provided each policy meets the minimum eligibility criteria.
It is a document stating the cash amount you’ll receive if you terminate your policy early. To get one, contact your insurer's customer service or log into their online portal to request a formal valuation statement.
Your life cover remains active, but the loan is treated as a lien. If the policyholder passes away before repayment, the outstanding loan amount and interest are deducted from the final death benefit payout.
Eligibility is simple—you must be the policyholder of an active endowment or ULIP plan with a sufficient surrender value. The policy should be free of encumbrances, and you must meet the lender’s KYC and documentation requirements. No separate income proof is generally needed.
The maximum loan amount is Rs. 25 crores and the minimum loan amount against an insurance policy is usually Rs. 25,000, while the maximum depends on the policy’s surrender value. Lenders typically offer up to 90% of this value, ensuring flexibility to borrow as per your liquidity needs without surrendering the policy.
Loans are usually available against traditional endowment and ULIP policies, provided they have a surrender value. Pure term plans and health insurance policies are not eligible, as they do not build a cash value that can be used as collateral for lending.
You cannot pledge general LIC policies for this loan. Only ULIP and endowment policies are eligible for loans with Bajaj. If your LIC policy is not of these types, you may need to explore alternative funding options or other lenders.
If you fail to repay, the outstanding dues, including interest, are adjusted against the policy’s surrender value. In extreme cases, this can lead to policy lapse, reducing maturity or death benefits. Timely repayment ensures your insurance cover remains unaffected while maintaining financial flexibility.
