LIC Loan Against Policy - How Much Can You Borrow? Interest Rate 2026

One of the most underused benefits of having an LIC policy is the loan facility. Instead of surrendering your policy when you need urgent funds, you can borrow against it.

**How LIC policy loan works:** - You can borrow up to 90% of your policy's surrender value - Interest rate: Around 10% per annum (check current rate at branch) - No credit check, no EMI pressure - No foreclosure charges - Policy continues with full cover during loan period

**Eligibility:** - Policy must have been in force for at least 3 years - Non-linked plans (endowment, whole life, money back) are eligible - Term plans are NOT eligible (no surrender value)

**Example:** - Plan: Jeevan Anand (914), SA: ₹5,00,000, Years paid: 10 - Approximate surrender value: ₹1,72,000 - Maximum loan: ₹1,55,000 (90% of surrender value)

**Repayment:** - You can repay anytime - no fixed EMI - If loan + interest is not repaid, it gets deducted from maturity/claim amount - LIC will not cancel the policy due to outstanding loan unless interest accumulates beyond a threshold

**Best used for:** - Medical emergency - Child's admission fee - Business working capital - Avoid surrender or lapse

Use our calculator: poddarwealth.com/calculators/loan or call 9415313434.