Advances against Life Insurance Policies

Loan / Overdraft Against Life Insurance Policies

We offer Loan and Overdraft facilities against Life Insurance Policies to help you meet your legitimate funding requirements.

Eligibility

Any Individual, Group of Individuals, Proprietorship / Partnership Firms, Companies, etc., who are bona-fide Members of the Bank, including Nominal Members.

Type of Facility

Loan and / or Overdraft Limit

Purpose

For any legitimate requirement of funds.

Margin

15% of the surrender value of the Life Policies.

Rate of Interest

As per Bank’s rules.

Other Charges

As per Bank’s rules.

Security

Assignment of Life Policies on the life of the borrower or any third party, who shall stand as surety for the credit facility.

Other Conditions

  • Assignment of the Life Policy in the Bank’s favour must be registered with Life Insurance Corporation of India before release of the credit facility.
  • Certificate of Surrender Value of the Life Policy must be obtained and kept on record at the time of sanction and every year thereafter.
  • CEO may relax the margin condition up to a maximum of 5% in deserving cases, based on the merit of each case.