To take care of the safety of the family and their every happiness, you too must have taken a loan and insurance policy at one time or the other. In such a situation, today we will tell you how and from where you can take a loan against your life insurance.
We Indians have a special habit. It is about loving and taking care of your family, no matter what it takes. We all always fear for the safety of our family. This fear of yours becomes business for insurance companies.
Taking insurance to keep the family safe and taking loans to meet their every demand has become a habit of every human being these days. Today we will tell you that if you also have a life insurance policy , then how you can take a loan against that policy easily and at low interest.
Loan amount depends on the surrender value
You can take a loan against the policy through banks or non-banking financial institutions ( NBFCs ). Let us tell you that the type of policy and its surrender value depend on the loan amount. Generally, the loan amount can be 80 to 90 percent of the surrender value of the policy. This much money will be available when you have a money back or endowment policy.
What is surrender value?
Till that time, when your life insurance policy matures, if you surrender your policy before that, then after deducting some charge from the premium you have paid under that policy, you get back some part and this amount is surrendered is called value.
Surrender value is not available with every insurance policy, but surrender value is returned only in those policies which have insurance as well as investment.
Rate of interest
The interest rate at which you will get the loan will depend on the amount of your premium and the number of premiums paid. Let us tell you that the interest rate of loan on life insurance is between 10-12%.
Policy can lapse if loan is not returned
The policyholder will also have to pay the premium in addition to the interest on the loan taken against the policy. Your insurance policy will lapse in case of default in loan repayment or premium payment. Let us tell you that the insurance company has the right to recover the amount of principal and outstanding interest from the surrender value of the policy.
Take loan like this
To take a loan against life insurance policy, you will have to fill an application form, in which you will have to submit all the necessary original documents of your life insurance policy. For the loan amount, the borrower will also have to give a canceled check of the bank along with the form.