What is a Loan Against Insurance Policy?

A loan against insurance policy is a secured loan that allows you to borrow money using your life insurance policy as collateral. Unlike personal loans, this solution helps you maintain your insurance coverage while giving you liquidity when you need it most.

You do not need to break your long-term plans to solve a short-term problem.

Avail loan of up to Rs. 25 crores* without breaking your plan. Do not surrender your policy, leverage it smartly. Apply now!

Here’s how the process unfolds:

1. Eligibility check: The policy should be an endowment or ULIP. Term plans are not eligible as they don’t carry surrender value.
2. Loan amount calculation: Lenders evaluate the surrender value of your policy and typically offer a loan up to 95% of this value.
3. Collateral pledge: Your policy is assigned to the lender. You retain the policy, but they hold it as collateral.
4. Loan disbursal: Once approved, funds are usually transferred within 24–48 hours*.
5. Repayment: You can repay via EMIs or, for flexi loans, withdraw and repay as needed, paying interest only on the used amount.

You stay insured while accessing liquidity, perfect for time-sensitive needs without financial compromise.

Quick liquidity without touching your savings? Get funds without surrendering your policy | Apply now

• Loan amount: Rs. 25,000 up to Rs. 25 crores*
• Eligible against endowment and ULIP policies
• Loan up to 95% of the surrender value
• Interest charged only on utilised amount (for Flexi variants)
• Keep your insurance and investment benefits intact
• Tenure up to 96 months
• Minimal documentation
• Quick disbursal – usually within 48 hours*

A loan against a life insurance policy allows you to unlock liquidity without surrendering your long-term financial cover. Instead of breaking your policy midway, you can borrow against its value and continue enjoying protection and potential returns. Here are the key loan against insurance policy features that make it a practical funding option:

• Lower interest rates: Since the loan is secured against your policy, interest rates are usually lower than personal loans or credit cards, helping you manage borrowing costs better.
• No impact on policy continuity: Your life insurance policy remains active. You continue to receive policy benefits, bonuses, and coverage, provided loan repayments and interest are managed on time.
• Quick access to funds: The application process is relatively simple, with minimal documentation. This makes it useful for urgent financial needs without lengthy approval timelines.
• No credit score dependency: Approval is largely based on the policy’s surrender value, not your credit history, making it accessible even if your credit score is not ideal.
• Flexible end-use of funds: The loan amount can be used for various personal or business needs, such as emergencies, education expenses, or short-term liquidity gaps.
• Flexible repayment options: Many lenders allow flexible repayment, where interest can be serviced periodically or adjusted against policy proceeds if not repaid during the tenure.
• Preserves long-term savings: Instead of liquidating your policy and losing future benefits, this option helps you meet immediate needs while keeping your long-term financial planning intact.

Overall, a loan against a life insurance policy offers a balanced way to access funds while safeguarding your insurance benefits, making it a cost-effective and convenient borrowing solution.

You might be thinking, “Why not just take a personal loan or dip into my savings?”

Here’s what sets this option apart:

1. You stay insured

Unlike surrendering your policy, this lets you access funds without giving up coverage or future maturity benefits.

2. Lower interest rates

Since this is a secured loan, interest rates tend to be more affordable than unsecured loans.

3. Quick and easy process

You don't need to go through extensive financial scrutiny. If you have a valid policy with a decent surrender value, approval is typically quick.

This type of loan works best for individuals who:

• Need urgent funds for medical, business, or education expenses
• Don’t want to break an FD or liquidate high-performing investments
• Are in the lock-in period of their policy but still need liquidity
• Want short-term borrowing without long-term financial disruption

In other words, it’s suited for calculated borrowers who want liquidity without compromising on protection.

Loan amount: Rs. 25,000 up to Rs. 25 crores*
Eligible against endowment and ULIP policies
Loan up to 95% of the surrender value
Interest charged only on utilised amount (for Flexi variants)
Keep your insurance and investment benefits intact
Tenure up to 96 months
Minimal documentation
Quick disbursal – usually within 48 hours*

A loan against a life insurance policy allows you to unlock liquidity without surrendering your long-term financial cover. Instead of breaking your policy midway, you can borrow against its value and continue enjoying protection and potential returns. Here are the key loan against insurance policy features that make it a practical funding option:

Lower interest rates: Since the loan is secured against your policy, interest rates are usually lower than personal loans or credit cards, helping you manage borrowing costs better.

No impact on policy continuity: Your life insurance policy remains active. You continue to receive policy benefits, bonuses, and coverage, provided loan repayments and interest are managed on time.

Quick access to funds: The application process is relatively simple, with minimal documentation. This makes it useful for urgent financial needs without lengthy approval timelines.

No credit score dependency: Approval is largely based on the policy’s surrender value, not your credit history, making it accessible even if your credit score is not ideal.

Flexible end-use of funds: The loan amount can be used for various personal or business needs, such as emergencies, education expenses, or short-term liquidity gaps.

Flexible repayment options: Many lenders allow flexible repayment, where interest can be serviced periodically or adjusted against policy proceeds if not repaid during the tenure.

Preserves long-term savings: Instead of liquidating your policy and losing future benefits, this option helps you meet immediate needs while keeping your long-term financial planning intact.

Overall, a loan against a life insurance policy offers a balanced way to access funds while safeguarding your insurance benefits, making it a cost-effective and convenient borrowing solution.

You might be thinking, “Why not just take a personal loan or dip into my savings?”

Here’s what sets this option apart:

1. You stay insured

Unlike surrendering your policy, this lets you access funds without giving up coverage or future maturity benefits.

2. Lower interest rates

Since this is a secured loan, interest rates tend to be more affordable than unsecured loans.

3. Quick and easy process

You don't need to go through extensive financial scrutiny. If you have a valid policy with a decent surrender value, approval is typically quick.

Who is it ideal for to take a loan against policy?

This type of loan works best for individuals who:

Need urgent funds for medical, business, or education expenses

Don’t want to break an FD or liquidate high-performing investments

Are in the lock-in period of their policy but still need liquidity

Want short-term borrowing without long-term financial disruption

In other words, it’s suited for calculated borrowers who want liquidity without compromising on protection.

You can apply for a loan against:

Endowment policies: Traditional savings-based plans.
ULIPs: Investment + insurance hybrid policies.
Note: Term life insurance plans are usually not eligible, as they don’t carry a surrender value.

Not sure if your policy qualifies? Check if your ULIP or endowment is eligible | Take a quick scan

The loan amount depends on your policy’s surrender value, that’s the amount you would receive if you voluntarily exited the policy today.

Here’s what most lenders offer:

The application process is relatively simple.

Step 1: Click on ‘Apply’

Ready to begin? Just tap on the ‘Apply’ button on our page to start your journey.

Step 2: Fill in your basic details

We will ask for a few personal details like your name, PAN, date of birth, etc. It won’t take more than a minute!

Step 3: Verify your email

Enter your email ID, and we will send you a quick verification link. Just click to confirm and done!

Step 4: Add your policy details

Here’s where you enter your insurance policy number and other key info. This helps us build your custom loan offer based on your policy.

Step 5: Get your personalised offer

We will instantly evaluate your policy’s loan value and share a tailored loan offer, no guesswork, just a clear number you can count on.

Step 6: Complete your KYC

To move forward, complete a quick KYC verification. It’s digital, secure, and takes just a few steps. Once done, your sanction letter will be ready!

Step 7: Set up auto-repayment (E-mandate)

Next, register an E-mandate, this lets you repay your EMIs automatically, so you never miss a due date.

Step 8: Review and accept the loan terms

Go through the final agreement, give your consent, and you are almost there. We will prepare your loan for disbursal.

Step 9: Submit your insurance policy

Now, submit your policy document. We’ll do a final check to confirm the loan amount.

Step 10: Receive your funds

That’s it! Once we verify your policy, the loan amount is disbursed directly to your bank account. Fast, simple, and stress-free.

A loan against insurance policy is more than just an emergency measure. It’s a financial tool for those who plan smartly balancing liquidity and protection. Whether you’re facing a short-term need or eyeing a strategic opportunity, this type of loan allows you to act without dismantling your future plans.

Use your policy not just as protection, but as a lever for confident decision-making.

Be financially flexible without financial loss. 

Get funds. Keep cover. Stay invested. Apply now