LIC insurance is a contract signed between an insurance policyholder and an insurance company where the company assures to pay a particular amount of money. However, this payment of money depends on the premium that the holder has opted for. The money is given after the death of the insured person or after a certain period of time. Last week an old man came to the bank and asked an official can we pay home loan with LIC Premium. This seemed impossible but I learnt it can be done. If you have the same query or a similar one, find your answer here.
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Can LIC policy be used for a home loan?The official clearly stated that one has to abide by the terms. One can avail of a home loan against the surrender of his or her policy but not the sum assured by the respective policy. About 80% of the policy’s surrender value can be borrowed and applied for a home loan. So it's better to ask the respective bank’s officials about the payment of the home loan with early premium and abide by their terms and conditions.
What is the eligibility criteria to avail home loan against LIC policy?There are certain requirements that need to be met before availing a home loan against a LIC policy and those are:
The person applying for the home loan must have a LIC insurance policy
The individual must not be a term insurance policy holder or unit-linked insurance policy holder
The policy must be having a surrender value
The person must be an Indian citizen
This must have answered your query: can
we pay home loan with LIC premium or not and what is the eligibility criteria to do it.
Read More:Is TDS applicable on insurance premium?
What is prepayment of home loan?
How to calculate prepayment of home loan?
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Can We Pay Home Loan with LIC Premium?
Kanishk
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2 Year
2022-12-29T22:06:15+00:00 2022-12-29T22:06:16+00:00Comment
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