Loan against Insurance Policy is becoming very popular among people these days. You can take loan on all kind of Insurance Policies like Income Plan, Whole Life Plans ,Endowment Plans .But you cannot take loan against Term Insurance Plan.
Both Banks and Insurance companies provide loan against Insurance Policy but the interest charged by Banks is usually higher than Insurance Companies .
Insurance Companies also provide a facility to clients to just pay interest and they will deduct loan amount from claim amount when it is time to settle the loan.
The Loan amount is 80-90 % of the surrender value and the minimum amount of policy should be Rs. 2 Lakh .
The Interest charged is 9 % by Banks and Insurance Companies.
In addition to this the Banks and Insurance Companies also check the Proof of Income of the Client.
The documents required for Loan against Insurance Policy :
1.Original Insurance Policy in the name of Client
2.Income Proof(Salary Slip, Income Tax Return)
3.Address Proof
4. 2 Photographs
HDFC Bank has the best Policy for Loan against Insurance Policy as they give the loan amount as Overdraft in HDFC Bank account . That means if they give Rs. 2 lakh as overdraft ( Loan) and you use Rs. 20000 the interest will be charged on this Rs. 20000 only.
Please find below the useful links :
HDFC Bank : https://www.hdfcbank.com
Aditya Birla : https://www.adityabirlacapital.com
Also See : https://financeloaninsurance.com/agri-loan/