₹10,000 - ₹25 Cr
Loan of up to 80% of policy value| Funding against policies under lock-in period
Overview
Can You Get a Loan Against a Life Insurance Policy
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What is a loan against SBI life insurance policy?
Loans up to Rs. 25 crore*
Finance a diverse range of needs with funds up to Rs. 25 crore* against your endowment and 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 endowment and 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 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.
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.
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 years to 90 years
- Minimum surrender value of policy: Rs. 10,000
- Employment: salaried or self-employed
- Must have an active Endowment and ULIP policy of either Bajaj Allianz, ICICI Prudential Life Insurance, TATA AIA Life Insurance, Reliance Nippon Life Insurance, Aviva Life Insurance
- 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
How to Secure a Rs. 2 Crore Loan Against Securities Instantly
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 for loan against insurance policy
The following charges are applicable on loan against life insurance policies:
| Types of fees | Charges applicable |
| Interest rate | From 7% p.a. to 12.25% p.a. In case of lock-in policies, compounding interest will be charged In case of lock-in free policies, simple interest will be charged |
| Processing fee | Up to 4.72% (inclusive of applicable taxes) of the loan amount or Up to ₹1,200/- (inclusive of applicable taxes) |
| Prepayment charges | Full prepayment - Up to Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment Part-prepayment - Up to Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part prepayment Note: If the primary Borrower is individual or Micro & Small Enterprises (MSEs) with or without co-borrower and loan is availed on Floating Rate of Interest, then there will be no Foreclosure / Part Prepayment Charges applicable, irrespective of the source of funds used for pre-payment of loans, either in part or in full, and without any minimum lock-in period. |
| Bounce charges | Rs. Rs. 1,200 per bounce per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of the payment mandate or non-registration of the payment mandate or any other reason.. |
| Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of 24% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Legal charges | Recovery of charges |
| Renewal fees | Up to Rs. 2950/- (inclusive of applicable taxes) to be collected on renewal. |
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Frequently asked questions
Eligibility
Application
Benefits
Can we take loan against insurance policy?
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).
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?
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.
Disclaimer
1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company(BAJAJ FINANCE) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.
2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.