LIC Policy Loan — Eligibility, Amount, Interest, Forms & Online Process
Need money from your LIC policy? Before surrendering it, first check whether your policy has a loan facility, what conditions apply, and how repayment may affect future policy proceeds.
This is educational and policy-servicing guidance provided by Ali Asgar. This website is not the official website of Life Insurance Corporation of India (LIC). Loan eligibility, amount, interest and servicing are governed by LIC and the terms applicable to the particular policy.
“Mujhe paise ki zarurat hai — kya policy surrender karni chahiye?”
Imagine you have paid LIC premiums for years and suddenly need funds for education, family needs, business or another important expense. Surrender may come to mind first. But an eligible LIC policy may have a loan facility, so the better first question is: “Meri policy par loan available hai ya nahi?”
There is no single answer for every policy. LIC states that policy loans are granted according to the terms applicable to the policy, and the Policy Bond indicates whether the policy carries a loan facility. LIC’s general servicing page mentions maximum limits linked to surrender value, but individual products can prescribe different eligibility rules and percentages.
Check My LIC Policy Loan
This quick check helps you identify what needs verification. It does not calculate or promise an exact LIC loan amount.
LIC Policy Loan Eligibility — Is Your Policy Eligible?
Check the policy
Start with your Policy Bond/plan conditions. LIC says the policy indicates whether a loan facility is available.
Check policy status & timing
Eligibility timing is not identical across all products. Some current LIC products allow loans after specified policy periods, while other products use different rules.
Check surrender value & plan rules
The available loan is linked to the policy’s applicable surrender value and plan-specific loan conditions—not simply the total premium you have paid.
LIC Policy Par Kitna Loan Milega?
This is one of the most searched questions, but it should not be answered with one percentage for everyone. LIC’s general Policy Conditions page mentions a maximum of 90% of surrender value for policies covered by that guidance and 85% in case of paid-up policies, including cash value of bonus. At the same time, LIC’s individual product documents can prescribe materially different limits.
For example, LIC’s Micro Bachat brochure describes up to 70% of surrender value for in-force policies and 60% for paid-up policies under that product, while the Modified Bima Jyoti brochure uses different percentages depending on policy status and premiums paid.
LIC Policy Loan Interest Rate — What Rate Applies?
Be careful with old Google articles, videos and even old printed forms. LIC’s current general guidance says the policy-loan interest rate is declared by LIC and is plan-specific, with interest payable half-yearly.
Because individual product documents can define their own rate-setting methodology and applicable annual window, this page deliberately does not advertise one percentage as the universal current LIC policy loan interest rate.
What about the six-month rule?
LIC’s general Policy Conditions page states a minimum loan period of six months. If repayment is desired within that period, interest for the minimum six-month period is payable. If the policy becomes a maturity or death claim within six months from the loan date, LIC states interest is charged only up to the maturity/death date. Your particular policy terms should still be checked.
LIC Policy Loan Online Kaise Le?
Use the official LIC route and verify your policy before assuming the complete process is paperless.
Check your policy details
Keep the Policy Bond/policy number available and confirm that the policy has a loan facility.
Register / sign in to LIC Customer Portal
LIC’s registration guidance lists Online Loan Request among Customer Portal services. Registration uses policy details and customer information.
Check the available loan request
LIC’s Policy Conditions page states that a loan request can be registered on the Customer Portal for policyholders registered for Premier Services.
Complete the applicable servicing requirement
LIC’s general guidance says that after registering the request, loan documents can be submitted to a nearby LIC Branch Office. Follow the instructions shown for your policy/request.
Keep acknowledgement and payment records
Retain the servicing acknowledgement and later keep interest/repayment receipts with your policy records.
LIC Loan Form — Which Form Do You Need?
Do not download a random PDF from Google and assume it is the correct form for your policy.
| Form | What the LIC bundle indicates | How to use this information |
|---|---|---|
| 5196 | First-loan application relating to policies issued before 1 June 1969. | Legacy/special situation—verify before use. |
| 5205 | Application for specified fresh/further loan situations where loan terms are already endorsed or the policy was issued on/after 1 June 1969. | Relevant to many loan applications in the official bundle, but servicing requirements should still be verified. |
| 5200 | Loan-amount receipt within the official loan bundle. | Supporting loan documentation. |
| 3516 | Relates to Multipurpose Policies. | Special/legacy policy use. |
| 5198 | Assignment-related loan documentation in favour of LIC. | Supporting documentation where applicable. |
| 3599 | Relates to old Anticipated Endowment Policies under Tables 24, 25 and 26. | Special/legacy policy use. |
LIC Loan Status — How Do I Check My Policy?
Once you have applied, your search changes from “Can I get a loan?” to “What is my LIC loan status?” LIC’s Customer Portal provides policy information and service-request facilities. Sign in through LIC’s official portal and review the information/request options available for your registered policy.
If the online information does not resolve your servicing question, use the servicing branch/official LIC support route. Avoid sharing policy credentials or OTPs with unofficial websites.
LIC Loan Interest Payment Online
LIC states that outstanding policy-loan interest can be paid online without visiting the servicing branch. The facility is available through the Customer Portal under Online Payments and also through Pay Direct after entering the required policy/customer information.
LIC currently lists UPI, Net Banking and Debit Cards for loan repayment and loan-interest payment. Credit cards are not available for these loan payments. LIC says an e-receipt is sent to the registered email and is also available in the Portal account.
LIC Loan Repayment Online — How Does It Work?
LIC also permits online repayment of outstanding policy loan through its official digital payment routes. The Customer Portal and Pay Direct are the key official options described by LIC.
Keep the successful transaction receipt. LIC’s portal guidance says receipts for successful transactions can be accessed online, and its payment guidance explains how transaction status can be viewed.
What Happens If a Policy Loan Remains Outstanding?
At a claim / exit
LIC’s policy guidance says an outstanding loan can be deducted from claim payments. Individual product terms may also provide for recovery of outstanding loan and interest from claim proceeds.
Interest still matters
A policy loan is borrowing against the policy—not free withdrawal. Interest obligations continue according to the applicable terms.
Foreclosure can matter
Some product terms allow foreclosure when outstanding loan plus interest reaches/exceeds the relevant surrender value. Check your particular plan before allowing interest to accumulate.
Need Money? Compare the Consequences Before Acting
A policy loan and surrender are not the same transaction. A loan creates an outstanding amount with interest under the policy’s loan conditions. Surrender is an exit from the policy and ends the contract once settled. The relevant choice depends on your policy, available values, cash requirement and objectives.
60–90 sec education video
Publish the real video here when ready—no fake play button.
“LIC policy surrender karne se pehle Policy Loan kyun check karna chahiye?”
A short Hinglish explanation: first check whether the policy has a loan facility; then verify eligibility, available amount and applicable interest; finally compare the consequences with surrender before taking action.
Common Policy Loan Mistakes
Assuming 90% applies to every plan
Individual product conditions can specify different limits.
Using an old interest rate
Verify the rate applicable to your plan and sanction period instead of relying on an old form/video.
Confusing premium paid with loan value
Loan availability is tied to applicable policy value and product conditions, not simply premiums paid.
Downloading an unexplained old form
Use LIC’s official forms directory and confirm the applicable servicing requirement.
Ignoring outstanding interest
Outstanding loan and interest can affect future proceeds and, under some plan terms, may have further consequences.
Repeating an online repayment
LIC specifically warns against another same-day repayment attempt after the amount has already been debited.
Get Help Checking Your LIC Policy Loan
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LIC Policy Loan FAQs
Is every LIC policy eligible for a policy loan?
No. LIC states that loans are granted according to the terms applicable to the policy and the policy indicates whether it carries a loan facility.
LIC policy par kitna loan milega?
The amount depends on the policy’s applicable surrender value, status and plan-specific loan provisions. Do not apply one universal percentage to every LIC plan.
What is the current LIC policy loan interest rate?
LIC’s general guidance says the rate is declared by LIC and is plan-specific. Verify the rate applicable to your policy and sanction period before proceeding.
LIC policy loan online kaise le?
LIC’s official Customer Portal provides Online Loan Request as a service for eligible registered users. LIC’s general policy-loan guidance also describes document submission after registration of the request.
Can LIC loan interest payment be made online?
Yes. LIC says loan-interest payment is available through Customer Portal/Pay Direct using supported payment methods.
Can LIC loan repayment be made online?
Yes. LIC says outstanding policy loan can be repaid online through its official digital payment facilities. Keep the e-receipt and avoid a duplicate same-day repayment if the first amount has already been debited.
Which LIC loan form should I download?
LIC’s official forms page publishes a bundle containing several loan-related forms for different situations. Use the official forms repository and verify which form applies to your policy.
How can I check LIC loan status?
Use LIC’s official Customer Portal/policy servicing channels for registered policy information and service requests. If the online information is insufficient, contact the servicing branch/official LIC support.
What happens to an outstanding loan at maturity or death?
LIC’s guidance allows outstanding loan to be adjusted against claim payments, subject to the applicable policy terms. Product terms may provide for recovery of outstanding loan and interest from claim proceeds.
Official LIC Sources Used For This Guide
For changing rules, forms, rates and servicing instructions, the official LIC source should take priority.
General policy-loan conditions, loan facility, general maximum guidance, plan-specific interest statement and six-month rule.
Official payment channels, supported payment modes, receipts and duplicate-payment warning.
Customer Portal registration and online service-request information.
Last reviewed: September 2026. LIC may change product conditions, rates, forms and digital servicing processes. Verify current policy-specific terms before acting.