Loan can be availed against your policy issued by LIC of India after successful premium payment until three full years' subject to the surrender value of the policy for such amount and following terms and conditions, as the LIC of India may fix from time to time
- The Policy shall be assigned absolutely to and held by the LIC of India as security for the repayment of Loan and of the interest thereon.
- Interest against Loan obtained by you shall be paid on compounding half-yearly basis to the LIC of India at the rate to be specified by the LIC of India at the time of taking loan against your policy taken by LIC of India. The first payment of interest is to be made on the next Policy anniversary or on the date six months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned and every half year thereafter. Interest is charged on half yearly basis.
- LIC of India shall be entitled to call for repayment of the Loan with all due interest by giving 3 months' notice. In the event of failure to repay the Loan when required or to pay interest on the due dates as herein above mentioned or within 30 days after each due date respectively the policy shall be without the necessity of any notice being given, foreclosed by the LIC of India and the Corporation shall be entitled to apply the surrender value allowable in respect of the policy in payment of the Loan and interest. However, in case of fully paid up or inforce policies foreclosure action shall not be applicable.
- In case the policy shall mature or become a claim by death, the LIC of India shall become entitled to deduct the amount of the Loan or any portion thereof which is outstanding, together with all interest from the policy moneys.
- EMI FREE LOAN
- NO EMI LOAN
- PERSONNELS LOAN
- TENSION FREE LOAN