Are you in need of instant cash but struggling to get a personal loan due to a poor credit score and high interest rates? If so, borrowing against your LIC policy might be the solution for you.
One of the biggest factors determining the interest rate on a personal loan is your CIBIL score. A low CIBIL score can lead to higher interest rates and more interest paid on the principal amount. However, with an LIC loan, you can secure a lower interest rate without impacting your CIBIL score.
To be eligible for a loan against your LIC policy, you need to meet certain criteria. You must be at least 18 years old and have paid the annual premium for the policy for a minimum of three years. The amount you can borrow is based on the surrender value of your policy, which can be up to 90% of the policy value for standard policies and up to 85% for paid-up policies.
Interest rates on LIC loans typically range from 10-13%, which is lower than the rates for personal loans. Additionally, you have the flexibility to pay the loan in installments according to your convenience.
To apply for a loan against your LIC policy, you can do so both online and offline. Offline applications require a visit to the LIC office with the necessary KYC documents, while online applications can be done through the LIC e-Services portal.
Overall, borrowing against your LIC policy can provide a more accessible and cost-effective alternative to traditional personal loans. Next time you find yourself in need of quick cash, consider exploring this option to meet your financial needs without impacting your credit score.
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