Taking loans against one’s insurance policy is not so prevalent in India simply because of ignorance of such a facility by the consumers. However, it is a smart decision in case of an adverse/emergency situation and can be a better alternative to a personal loan or credit card. Availing loans on your Linked Insurance plans is now a breeze if the policy has completed 5 years lock in period.
Below are the details of the availability of the loan amount:
- 40% of the NAV in case the ULIP fund was predominantly equity-oriented
- 50% of the NAV in case the ULIP fund was predominantly debt-oriented
The policy documents are kept as collateral towards the loan amount till it is repaid. This will be effected post the assignment of the policy in favour of the bank.
The facility is only available to valued Canara Bank customers as of now. Please contact your nearest Canara Bank Branch for further details.