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Frequently Asked Questions

This is a loan in which you use your life insurance policy as collateral. You pledge your policy to the lender for the term of the loan. The lender offers you a loan, up to the value locked in your policy, similar to a gold loan.
Except Term policies, most life insurance policies are eligible. Please contact us to check eligibility.
The interest rate starts at 11% per annum. A loan against an Insurance Policy is a fully secured loan, so the risk for the lender is minimal, allowing them to charge lower interest rates.
The minimum loan amount is ₹25,000 and maximum loan amount is ₹1 Crore. What you are eligible for will depend on your policy details.
Surrender value is the amount that the insurance company pays the policyholder if he/she decides to terminate the plan before maturity. To estimate your surrender value, please check our Surrender Value Calculator. For more information, please reach out to us.
The term of the loan or overdraft can vary from 12-36 months, depending on your needs and your policy eligibility.
Yes! You can choose between a term loan and an overdraft product, once approved for credit against your insurance policy.
Feature Overdraft Term Loan
Flexibility Pay interest only on the amount you use Receive the full amount upfront and repay with interest over a fixed term
Interest rates 9 to 11% 12 to 36%
Repayment terms Revolving credit line so repay when you can Fixed repayment terms
  1. Term loan: You will repay the loan through Equated Monthly Instalments (EMIs).
  2. Overdraft: Based on your usage of the credit limit, you will make variable monthly payments.
  • Step 1: Upload your policy document and we will get back to you if your policy is eligible for a loan.
  • Step 2: Complete digital KYC process and bank verification through penny-drop.
  • Step 3: Choose between a term loan or overdraft.
  • Step 4: Pledge your policy to the lender.
  • Step 5: Sign loan offer and receive the loan amount.
If you fail to repay the loan, the lender to whom you have pledged the policy will recover the loan amount from your policy by surrendering the policy to your insurer. They will then close the loan and settle any remaining amount left after recovery back to you.
Loans against life insurance policies require you to “pledge” the policy to the lender. This means the lender has the right to surrender your policy in case of default. Essentially, the pledge enables the lender to utilize your policy as collateral. Once the loan is repaid, the policy is reassigned back to you, allowing you to enjoy all of its benefits.
Yes, it is advisable to keep paying your premiums during the tenure of the loan to avoid penalties, charges and the risk of your policy lapsing resulting in you losing out on policy benefits.