A loan against insurance policy can be helpful during emergencies as it offers considerably higher loan value at comparatively lower interest rates. Many LIC policies come with a loan facility and the loan amount is based on the surrender value of the policy. The borrowers can get up to 85- 90% of the surrender value of the LIC policy. For instance, if the surrender value of your insurance policy is Rs 5 lakh you can avail loans up to Rs 4.5 lakh. The interest rate on loan against insurance policy could vary depending on the lender. The Life Insurance Corporation of India offers loans against LIC policies at an interest rate starting at 9-10%. How to Avail of a Loan Against a LIC Policy? The online way of getting a loan against an insurance policy is available only with the insurance companies. LIC offers an option to its subscribers to apply for a loan on its online portal. Register yourself on LIC portal. Go to the tab of Online Services Click on the Online Loan option This takes you to the Online Policy Options where you can place a request for a loan under the Online Loan Request Tab. After placing the request, you may need to upload your KYC documents for verification Eligibility Criteria Minimum age of the applicant should be 18 years Applicant must have a valid LIC policy The LIC policy used for obtaining loan has guaranteed surrender value At least 3 years of LIC premium has to be paid in full Documents Required for Loan Against LIC Policy Duly filled application form along with passport-sized photographs Original policy document Proof of identity: Aadhaar Card, Passport, Voter ID Card, Passport Proof of residence: Aadhaar Card, Voter ID Card, Driving License, Utility Bills (water or electricity) Proof of income: Salary Slips, Bank Account Statement Any other document required by LIC