The concept of loan against insurance is unfamiliar in India because most of the insurance policyholders are not aware of the fact. If you are in such a situation where you need some money in urgency and you have an insurance, you can utilize it effectively and avail a loan against insurance policy. You can apply for such a loan in a bank, NBFC or any other financial institution. Remember, a loan against insurance is not available against ULIPS and term insurance policies. Any insurance policy where you put your money in equities or equity-based securities.
A proportion of the policy surrender value can be availed as a loan. You can get 80% to 90% of the policy surrender value as a loan.
You just have to fill an online form and you need to submit your insurance policy documents along with the form to the lender. You also need to deposit payment receipt or the invoice of the loan figure and cancelled cheque copy.
You should be aware of the charges lenders may ask for? Some lenders may ask for a processing fee for crediting the loan amount in your bank.
The rate of interest is a major factor. It should be minimal. However, the interest rate of a loan against insurance scheme is lesser than a personal loan. But, you should choose good lender, to get lesser rates.
Read More :- Loan Against Insurance – A Quick Insight
Read More :- Loan Against Insurance – A Quick Insight
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health.
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