LIC Personal Loan – Get Personal Loan From LIC | Without CIBIL Score | Comprehensive Guide 2023

LIC Personal Loan

In the realm of financial solutions, LIC (Life Insurance Corporation of India) stands as a stalwart institution, not only safeguarding lives but also offering a unique avenue for personal loans. This essay explores the nuances of LIC Personal Loans, shedding light on the eligibility criteria, loan details, application process, and the steps involved in securing this financial lifeline from one of India’s most trusted entities.

Eligibility Criteria

LIC Personal Loans come with a distinct eligibility criterion, making them exclusive to individuals who hold an LIC policy. The minimum age requirement is 18 years, ensuring that applicants have reached adulthood before considering this financial option. To qualify for the loan, the policyholder must have paid the full LIC premium for at least three consecutive years, demonstrating a commitment to their insurance policy.

Loan Details

The loan amount available through LIC Personal Loans is linked to the surrender value of the policy. Policyholders can access up to 90% of the surrender value, with variations based on the type of insurance plan. Term plans and endowment plans offer 90% of the surrender value, while whole life plans and savings plans provide 85% of the surrender value. This ensures flexibility and adaptability to the diverse range of LIC policies that individuals may hold.

Interest Rates and Tenure

LIC Personal Loans come with a competitive interest rate of 10% per annum. The tenure for repaying the loan is set at a minimum of 12 months, with the option to extend it up to 36 months. This flexibility in tenure allows borrowers to tailor the repayment period according to their financial circumstances, adding an element of convenience to the borrowing experience.

Application Process

Applying for an LIC Personal Loan is a streamlined process that prioritizes convenience. Applicants can visit the nearest LIC office to initiate the application process. Alternatively, the online application option adds an extra layer of accessibility, allowing policyholders to apply from the comfort of their homes. The application involves filling the requisite forms and submitting necessary documents, ensuring a minimal paperwork requirement.

Documents Required

To facilitate the application process, certain documents are mandatory. These include a duly filled and signed loan application form, a copy of the LIC policy document, proof of identity and address, and income proof if applicable. These documents collectively contribute to a comprehensive assessment of the borrower’s eligibility and financial standing.

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Loan Disbursement and Repayment

Once the application is approved, the loan amount is disbursed, providing the borrower with the necessary financial support. It is imperative to note that the policy will lapse in case of default in repayment. The three-year waiting period after purchasing the policy adds a layer of prudence, ensuring that borrowers have a stable financial history with their LIC policy before availing the loan.


In conclusion, LIC Personal Loans represent a unique fusion of financial security and flexibility. By leveraging the surrender value of an LIC policy, individuals can access a significant portion of their insurance investment, providing a timely solution for various financial needs. With competitive interest rates, a straightforward application process, and the trust associated with LIC, these personal loans stand as a testament to the institution’s commitment to empowering policyholders beyond life insurance. As individuals navigate their financial journeys, LIC Personal Loans emerge as a reliable companion, offering not just monetary assistance but a seamless integration of insurance and lending services.

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