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If you bear Life Insurance Policy (LIP), NSC or KVP, feel free to take advantage of our loan offerings against them.

Eligibility:

  1. The Life Insurance Policy( LIP) of any life insurance company should be in force for a minimum period of 3 years or having surrender value and should be assignable
  2. NSC/KVP should be minimum 1 year old in case of TL

Limits of Loans:

  1. No limit

Basis of Advance:

  1. NSC:
    1. 90 % of Face Value if residual maturity period is less than 3 years
    2. 85 % of Face Value if residual maturity period is more than 3 years
  1. LIP:  90% of surrender value

Repayment Period:

  1. 10 years in case of TL OR date of maturity whichever is earlier.
  2. OD facility subject to annual review or date of maturity whichever is earlier.

Rate of interest (Floating): w.e.f 13.02.2023

  1. (PLR – 5.75) = 9.75%
  2. Present PLR: 15.50% p.a. 

Security:

  1. In case of LIP, the terms and conditions of the Policy should state that Policy can be assigned / Loan can be availed against the Policy.
  2. KVP/NSC should be pledged/LIP should be assigned in Banks Name.
  3. If it is against third party, policy holder should be taken as Guarantor.

Processing Fees:

  1. Nil

Shareholding:

  1. 2.5% of sanctioned amount maximum Rs 25,000/-

Documents Required:

  1. Prescribed loan application form