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Loan Against Life Insurance
A life insurance policy is a versatile investment option today. It not only provides protection cover but also gives an insured the benefit of availing a loan against the policy. However, you must bear in mind the following factors before buying a loan against life insurance policy:
Frequently Asked Question:
1. Which types of insurance policies can I get a loan against?amp; conditions and at the sole discretion of HDFC Life
3. What is the interest rate on these loans?
A. Interest rates for loans against insurance policies are currently 9.5% per annum (using the reducing balance method) and are subject to revisions every six months.
4. Are there any additional charges or fees?
A. HDFC Life doesn't charge any processing fees, foreclosure charges, partial payment fees or any other type of fee.
5. What happens if I don't repay the loan on time?
A. HDFC Life shall be entitled to deduct such outstanding amount together with all interest due up to the date on which the benefit amount under the policy becomes payable, from the policy money. The remaining balance, if any, shall be due and payable under the policy in accordance with the terms and conditions of the policy.
6. Is the loan amount taxable?
A. Loans against insurance policies are not taxable, as they are considered loans and not income.
7. Can I prepay the loan before the term ends?
A. Yes, you can prepay the loan without any charges and also can close the loan
8. Does taking loan against policy require credit score check
A. While taking loan against policy, there is no credit score check. Therefore no effects on your credit score. Low credit score customer can also get policy loans
9. How to apply for loan against policies?
A. Currently can be applied from the below 5 touch points-
- By login through our Virtual assistant "- +91 8291890569
- Reach out to us over call on 02262874200 for instant assistance
- Walk-in to our nearest HDFC Life branch. Locate us at Branch locator https://www.hdfclife.com/contact-us#BranchLocator
ARN- ED/05/24/11833
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Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
Vishal Subharwal
Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.
Reviewed By:
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance solutions - protection, pension, savings, investment, annuity and health.
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