Estimate the loan value in your life insurance policy
No income proof or credit score required
No EMI! Two interest payments a year, pay principal flexibly
No need to part with your precious family gold!
Policy Coverage (91 top policies)
How to use our Loan Eligibility Calculator?
By using our Loan Eligibility Calculator and carefully considering the risks and benefits, you can make a more informed decision about whether a loan against insurance policy is the right financing option for you.
- Select your policy from the list of the policies. Can’t find your policy? No problem, just reach out to us and we will help you.
- Enter your policy details - Sum Assured, Premium, Term, Frequency and Start Date.
- View the estimated surrender value and download the report.
- Review your customized report; surrender may not be the smartest financial decision for you.
How is Surrender Value Calculated?
Surrender Value = [ { ( Number of Premiums Paid / Number of Premiums Payable ) x Sum Assured } + Accrued Bonus ] x Surrender Value Factor
Please note, the Surrender Value Factor (SVF) varies across insurance companies and policies.
What is a loan against life insurance policy (LAIP)?
A loan against life insurance policy (LAIP) is a secured loan where you pledge your policy as security to borrow money. The lender will determine the maximum loan amount you can qualify for based on a loan to value (LTV) ratio. This usually ranges from 50 to 90% depending on the policy. This ratio represents the percentage of your policy's surrender value that the lender is willing to lend against. You are then issued a credit limit which functions like a bank overdraft facility, where you are charged interest only on the amount you withdraw from this credit limit.
How to get a loan against your life insurance policy?
With Mera Kal, you can get loan against life insurance policy in 5 simple steps:
- Upload your policy document and we will get back to you if your policy is eligible for a loan.
- Complete digital KYC process and bank verification through penny-drop.here.
- Choose between a term loan or overdraft.
- Pledge your policy to the lender.
- Sign loan offer and receive the loan amount
How interest is calculated on overdraft against insurance policy?
Overdraft against life insurance policy works like a bank overdraft limit, where you are only charged interest on the amount you withdraw. Example: You have a limit of ₹ 1 Lakh and the interest rate for the year is 10%. But if you used only ₹ 50,000 then the interest that you would have to pay would be ₹ 5,000 for the year.
What is the difference between an Overdraft and a Term Loan?
| Feature | Overdraft | Term Loan |
|---|---|---|
| Flexibility | Pay interest only on the amount you use | Receive the full amount upfront and repay with interest over a fixed term |
| Interest rates | 14 to 16% (reducing balance) | 13 to 15% (reducing balance) |
| Repayment terms | Revolving credit line so repay when you can | Fixed repayment terms |