LIC Personal Loan is available at very low-interest rate, know how to apply

Life Insurance Corporation (LIC) is the largest reputed insurance company of India. It has several schemes and policies for the people. Those policyholders get different offers under the policies including a loan facility. If you have a LIC policy, you can easily take a personal loan. Its interest rate is much lower than that of government or private banks. LIC’s interest rate on personal loan starts from 9 percent.

Let us tell you, the interest of LIC’s personal loan is very less as compared to other banks. At present, its interest rate starts from 9 percent and the loan tenure is 5 years. The loan amount depends on the surrender value of the policy and can be availed up to 90%. Suppose if the surrender value of your policy is Rs 5 lakh, then you can get a loan of up to 4.5 lakh on it. Its biggest feature is that if you pay before the loan tenure, the charges are zero. This means that if a creditor wants to repay the loan amount before the stipulated period, he will not have to pay any separate charges. This is called the fee charged for premature termination.

LIC Personal Loan is available at 9% interest

The interest on the loan starts from 9 percent. However, what will be the interest rate on LIC personal loan, it will completely depend on the credit profile of the applicant. In this profile, the income of the creditor, the type of employment he does, what will be the loan amount and the repayment period of the loan will matter. The loan rate will depend on all these factors.

LIC Personal Loan interest will get deducted

The interest rate on the loan is calculated using the flat rate or flat balance method. In this, interest is charged on the principal amount of the loan. On the other hand, balance reduction method is used in which interest is charged on the outstanding amount of the loan. In this method, as the creditor repays the loan amount, interest accrues on the remaining loan amount as his principal amount decreases. Suppose you took a loan of 5 lakhs and gradually repaid it to 2 lakhs, then interest will be charged only on that 2 lakhs. The person taking the loan gets the benefit from the reduction method.

Here’s how much EMI you will have to pay for LIC Personal Loan

On this basis, we can calculate EMI (LIC Personal Loan Interest Rate). If an individual has taken a loan of Rs 1 lakh at 9% and the tenure is fixed for 1 year, then an EMI of Rs 8,745 will be applicable. If the loan is taken for a tenure of 2 years, the EMI will be Rs 4,568. There will be an EMI of Rs 3,180 on the loan for 3 years. If the loan is taken for a tenure of 4 years, then the EMI of Rs 2,489 will be there. If the loan is taken for 5 years, then there will be an EMI of 2,076.

Similarly, if you have taken a personal loan of 5 lakhs, then the EMI of Rs 44,191 will be on the 1 year loan. The loan tenure of 2 years will have an EMI of 23,304. The EMI on the loan with tenure of 3 years will be Rs 18,472. Rs 12,917 on loan with EMI of Rs 15,000 for 4 years and tenure of 5 years.

How to apply for LIC Personal Loan

In order to apply for the LIC Personal Loan visit the official website of LIC (Click here for the direct link).

  • After the home page is opened on the screen of your computer, click on the ‘Online Loan’ under the Online Service (This can be found on the left-hand side).
  • As you click on the ‘Online Loan’ it will lead you to a new page, where you will find two options i.e., Loan Repayment and Online Loan Request.
  • Now you have to log in with your customer ID, password and date of birth.
  • You have to link your bank account number with your policy number so that the loan amount will be auto-credited to the bank account.


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  1. J.william says

    Still 9/interest is too much lic must help people.
    Agent forcely make policy many inosent people get trapped.the can not continue & get discontinued.
    Many inosent people suffer fiance burden agent cheat poor people they don’t explain lic policy many people cry & commit sucid.agents get good commission.lic employees get good salary poor people die very very sad lic

    1. Shibam Karmakar says

      Yeah absolutely , whereas SBI is providing much lower than this.

  2. Arun kumar says

    9% interest compounding
    Wont display intrest online portal even you pay intrest it attract intrest back dated

  3. Shawal says

    I agree 100% no lic agent explain about the policy to customer his focus is get high commission by selling the policy to the innocent customer..

  4. Shawal Hameed says

    If agent tell the customer how much returns he/she will get for their investment , then no one take lic policy from them…it is sometimes less than 5%

  5. Anil kumar says

    Pers onal loan

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