There is no doubt that intelligent people save for their present and future. This is because people are unable to work in old age, due to which their income also becomes zero. If you are already saved, 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 debt to meet today’s needs. In such a situation, if you have an insurance policy, then you can also take a loan on it. So let’s know what is its mechanism and what is its interest rate etc.
If you want, you can get a loan on your insurance policy. For this, you will only 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 a loan as per rules.
If you want to take a loan on 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 80-90 percent of the surrender value. However, it depends on the company how much loan you can get.
If you talk about the interest rate on the loan, then the interest rate on taking a loan on the 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 some EMI we have to face economic problems, which affects EMI. In such a situation, if you miss the EMI or miss the payment, then your insurance policy can end and you can also be fined.
