Utility News Desk !!! There is no doubt that intelligent people save for their present and future. This happens because in old age people are not able to work, due to which their income also becomes zero. If savings are made in advance, then there can be many options like pension. But on the other hand, it cannot be denied that a large section of people have to depend on loans to meet today’s needs. In such a situation, if you have any insurance policy of your own, then you can also take a loan on it. So let us know what is its mechanism and what is its interest rate etc.
If you want, you can get a loan against your insurance policy. For this, you just have to talk to your insurance company or broker through which you have taken this policy.
Here some of your documents are required and then you can get the loan as per the rules.
If you want to take a loan against your policy, then it is important for you to know that you get this loan according to the type of your policy and its surrender value. If you have taken a money back or endowment policy, then you can get a loan of up to 80-90 percent of the surrender value. However, it depends on the company how much loan you can get.
If we talk about the interest rate charged on the loan, then the interest rate on taking a loan against an insurance policy is between 10-12 percent. However, when you take a loan, the interest rate depends on your premium amount, loan amount and other factors.
It often happens that we take a loan, but after a few EMIs we face financial difficulties, which affects the EMI. In such a situation, if you miss the EMI or default in payment, your insurance policy may expire and a penalty may also be charged from you.