Loan Against Insurance Policy

• 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.

Processing a loan against an insurance policy takes approximately 24 hours, subject to the submission of all required documents.

No, the principal amount cannot be converted to EMIs.

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.

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.

The policy must 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 service requests related to a loan against an insurance policy.

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 –

• 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.
• 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.

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 be adjusted on Monday (assuming Wednesday is a business day).

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).