LIC Policy Loan – How to Get Maximum Loan Against Your Policy

LIC Policy Loan – Complete Guide 2026

Did you know you can borrow money against your LIC policy without surrendering it? LIC policy loans are one of the best emergency funding options — low interest, no credit check, and your policy remains active!

Eligibility for LIC Policy Loan

• Policy must have paid at least 3 full years of premiums
• Plan must have surrender value (term plans are not eligible)
• Policy must be in-force or paid-up

How Much Can You Borrow?

• In-force policy: Up to 90% of Surrender Value
• Paid-up policy: Up to 80% of Surrender Value

Interest Rate

LIC charges 10% per annum, compounded half-yearly. This comes to approximately 10.25% effective annual rate — much lower than personal loans (14-24%) or credit cards (36-42%)!

Surrender Value Calculation

Surrender Value = Higher of (GSV or SSV). GSV = 30-90% of premiums paid depending on years. Example: ₹1L SA policy, ₹60,000 annual premium, 7 years paid: GSV ≈ ₹2.52L, Max Loan ≈ ₹2.27L (90% of SV).

How to Apply

1. Visit nearest LIC branch with original policy document
2. Fill policy loan application form
3. Submit ID proof and policy documents
4. Loan disbursed within 3-5 working days

Calculate Your Loan Eligibility

Use our free LIC Loan Calculator to instantly calculate your maximum loan eligibility and monthly EMI.