Estimate the loan value in your life insurance policy

What is a Loan Eligibility Calculator and How Does It Work?

A Loan Eligibility Calculator helps you estimate the maximum loan amount you can get against your life insurance policy. It works by factoring in key policy details like:

• Sum assured
• Total premiums paid
• Policy term
• Bonus (if any)
• The loan to value ratio (as defined by the lender)

This calculator gives you an estimate of the maximum loan amount you can borrow against your policy — which helps you understand your borrowing capacity. You can check your loan eligibility with our loan eligibility calculator.

How to use our Loan Eligibility Calculator?

By using our Loan Eligibility Calculator and carefully considering the risks and benefits, you can make a more informed decision about whether a loan against insurance policy is the right financing option for you.

1. Select your policy from the list of the policies. Can't find your policy? No problem, just reach out to us and we will help you.
2. Enter your policy details - Sum Assured, Premium, Term, Frequency and Start Date.
3. View the estimated loan amount and download the report.
4. Review your customized report to understand your loan eligibility and terms.

When does my policy become eligible for a loan?

Most traditional policies (like endowment or money-back) start building loan eligibility after 2–3 years of full premium payments.

In the case of ULIPs (Unit Linked Insurance Plans), they start accumulating a fund value right from the beginning, but they come with a 5-year lock-in period. This means even though your money is invested and growing in market-linked funds, you cannot take a loan against it until your lock-in period is over.

How to Use the SBI Loan Eligibility Calculator?

For using our SBI Life loan eligibility calculator on our platform you need to:

• Choose your SBI Life plan from the list of dropdown
• Enter your policy details
• Instantly view the estimated loan amount and download the report

If your SBI Life policy is eligible for a loan, our team will also guide you through the next steps.

How to Use the LIC Loan Eligibility Calculator?

For using our LIC loan eligibility calculator on our platform you need to:

• Choose your LIC plan from the list of dropdown
• Enter your policy details
• Instantly view the estimated loan amount and download the report

If your LIC policy is eligible for a loan, our team will also guide you through the next steps.

Is this loan eligibility calculator only for LIC and SBI Life policies?

Currently, the tool is optimized for LIC and SBI Life loan eligibility estimates. We're actively working on adding support for other major insurers like Max Life loan eligibility calculator, HDFC Life loan eligibility calculator, ICICI Prudential loan eligibility calculator, and Tata AIA loan eligibility calculator, and will be up soon.

If your policy isn't listed yet, don't worry — just reach out to us and we'll help you check your loan eligibility manually.

Can I get the loan eligibility instantly using this calculator?

Yes, our online loan eligibility calculator gives you an instant estimate based on the inputs you provide including policy type, premiums, and term. It helps you make quick comparisons between different loan options and terms.

Is the loan amount the same as the fund value in ULIPs?

Not exactly. In ULIPs, the fund value is the current market value of your investment. However, when you take a loan against the policy, charges or deductions may apply, especially if the loan is taken early. The loan amount is what you can borrow after these deductions.

Will taking a loan against my policy affect my credit score?

Taking a loan against your policy may be reported to credit bureaus, which can impact your credit profile. However, timely repayments can actually help improve your credit score.

Can I get money from my policy without taking a loan?

In some traditional LIC and SBI Life policies, partial withdrawal is not allowed. But in ULIPs, partial withdrawals are usually allowed after 5 years, subject to minimum balance requirements.

However, a loan against your policy is often a better way to access funds without losing your life cover.

Which is better — taking a loan or surrendering my LIC policy?

How is Loan Amount Calculated?

Loan Amount = Surrender Value x Loan to Value (LTV) Ratio (usually 50-90% depending on policy type and insurer)

Please note, the Loan to Value (LTV) ratio varies across insurance companies and policy types.

What is a loan against life insurance policy (LAIP)?

A loan against life insurance policy (LAIP) is a secured loan where you pledge your policy as security to borrow money. The lender will determine the maximum loan amount you can qualify for based on a loan to value (LTV) ratio. This usually ranges from 50 to 90% depending on the policy. This ratio represents the percentage of your policy's surrender value that the lender is willing to lend against. You are then issued a credit limit which functions like a bank overdraft facility, where you are charged interest only on the amount you withdraw from this credit limit.

How to get a loan against your life insurance policy?

With Mera Kal, you can get loan against life insurance policy in 5 simple steps:

1. Upload your policy document and we will get back to you if your policy is eligible for a loan.
2. Complete digital KYC process and bank verification through penny-drop.here.
3. Choose between a term loan or overdraft.
4. Pledge your policy to the lender.
5. Sign loan offer and receive the loan amount

How interest is calculated on overdraft against insurance policy?

Overdraft against life insurance policy works like a bank overdraft limit, where you are only charged interest on the amount you withdraw.

Example: You have a limit of ₹ 1 Lakh and the interest rate for the year is 10%. But if you used only ₹ 50,000 then the interest that you would have to pay would be ₹ 5,000 for the year.

What is the difference between an Overdraft and a Term Loan?