India No Stress Loan with Pay Anytime EMI: If you are thinking of taking a personal loan then you should read the report. Because here we have given detailed information about a loan which is cheaper than a personal loan and there is no hassle of paying EMI. The method of paying this loan is so easy that you can pay the loan as per your convenience.
India No Stress Loan with Pay Anytime EMI
Bank Loan News: When money is needed in an emergency, people usually think of a credit card or a personal loan. Short-term loans can be taken through a credit card, but personal loans are considered better for long-term purposes. However, the interest rates of personal loans are very high and there is a burden of paying EMI every month. But there is also a loan which is cheaper than a personal loan and there is no hassle of paying EMI. The method of paying this loan is so easy that you can pay the loan as per your convenience. Most people are not aware of this loan. Let’s know about this loan in detail.
Here we are talking about LIC loan. Life Insurance Corporation (LIC) offers loan facility on almost all its policies. If you have an LIC policy and loan facility is available on it, then you can manage your money by taking this loan in difficult times. This loan does not require much paperwork, and the customer can get the loan amount in just 3 to 5 days.
No processing fees or hidden charges
One of the major advantages of LIC loans is that you do not have to surrender your policy. Hence, the benefits you get from the insurance do not stop. Apart from this, these loans are cheaper compared to personal loans. There are no processing fees or hidden charges while taking the loan, which saves on the additional cost of the loan. Generally, LIC loans are available at an interest rate of 9% to 11%, while the interest rate of personal loans can range from 10.30% to 16.99%.
No hassle of EMI every month
After taking a loan on an LIC policy, its repayment is very easy. This gives enough time to repay the loan, as the loan period can be from a minimum of six months to the maturity of the insurance policy. This benefits the customers in that they do not have to worry about paying EMI every month. As you accumulate money, you can repay the loan amount accordingly. But keep in mind that annual interest keeps adding to this. Even if the customer repays the loan within the minimum period of six months, he still has to pay six months of interest.
3 options to repay the loan
Pay the full principal amount with interest: The entire loan amount and its interest can be paid together.
Payment at the time of maturity of the policy: Settle the principal amount from the claim amount at the time of maturity of the policy. In this case, you will have to pay only the interest amount.
Pay annual interest: Pay the annual interest amount and pay the principal amount separately.
Loan Amount and Secured Loan
The loan amount in LIC is determined based on the surrender value. You can get a loan of 80 to 90 percent of the surrender value of the policy. This loan is a secured loan, meaning the insurance company pledges your policy. If you do not repay the loan or the outstanding loan amount exceeds the surrender value of the policy, the company has the right to cancel your policy. If your policy matures before the loan is paid, the insurance company can deduct the loan amount from your claim amount.
How to apply for a loan?
You can apply for a loan against a policy both online and offline.
- Offline process: Visit an LIC office and apply for a loan along with KYC documents.
- Online process: Register for LIC’s e-services. Log in to your account. Check whether you are eligible for a loan against a policy. Read the loan terms, conditions, interest rate, etc. carefully. Submit the application and upload the KYC documents online.
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