Loans Against Reliance Nippon Life Insurance Policies / IndusInd Nippon Life Insurance Policies

Introduction

Protecting your loved ones and securing your finances are key reasons to purchase a life insurance policy. But what if your insurance policy could do more than just provide future security in times of financial need? With a loan against your life insurance policy, you can access urgent funds without surrendering the policy or disrupting your financial planning. If you own an IndusInd Nippon Life Insurance policy, you may be able to access funds without surrendering it.

At Mera Kal, we help you unlock the potential of your insurance policy, allowing you to retain all the benefits of your life cover while enjoying lower interest rates compared to personal loans or credit cards. This solution empowers you to meet your financial needs while keeping your long-term financial goals intact.

About IndusInd Nippon Life Insurance

IndusInd Nippon Life Insurance (Reliance Nippon Life Insurance) is one of India's leading private life insurance companies. Over the years, the company has undergone multiple ownership and brand transitions while continuing to service existing policyholders without interruption.

• Reliance Life Insurance — The insurer originally operated as Reliance Life Insurance after being established under the Reliance Group.
• Reliance Nippon Life Insurance — The company was later renamed Reliance Nippon Life Insurance after Nippon Life Insurance, one of Japan's largest life insurers, acquired a significant strategic stake.
• IndusInd Nippon Life Insurance — Following the acquisition of Reliance Capital by the Hinduja Group (promoters of IndusInd Bank), the company adopted its current name, IndusInd Nippon Life Insurance.

How Does a Loan Against Your Reliance Nippon Life Insurance Policy Work?

A loan against an Reliance Nippon Life insurance policy is essentially a loan taken using the policy’s surrender value as collateral. You will be eligible for a loan once your policy has accrued sufficient value based on the premiums you have paid. The loan amount is typically a percentage of the surrender value and can be used for any personal or financial need.

Available Plans for Loan Collateral

If you own an IndusInd Nippon Life Insurance, Reliance Nippon Life Insurance, or Reliance Life Insurance policy, it may be possible to unlock funds without giving up your policy.

Every policy is different, and eligibility depends on the policy value, status, and lender criteria. Before surrendering your insurance policy, it is worth checking whether a loan against your policy is available.

That said, IndusInd Nippon Life Insurance/ Reliance Nippon Life Insurance offers a range of plans that may qualify for loans, provided they have accumulated a surrender value. Here’s an overview of some popular Reliance Nippon Life plans that could be eligible for loans:

At Mera Kal, we make access to credit against your insurance policies seamless, ensuring you get access to the funds you need without forfeiting the insurance benefits you've worked hard to secure.

FAQs on Loans Against Reliance Nippon Life Policies/IndusInd Nippon Life Insurance Policies

1. What is a loan against an Reliance Nippon Life policy?

   This is a secured loan that utilises your Reliance Nippon Life insurance policy as collateral. This is completely legal, safe and an easy way to get funds, when you need them.

2. Is My Old Reliance Life or Reliance Nippon Life Policy Still Valid?

   Yes. If your policy document is issued in the name of Reliance Life Insurance or Reliance Nippon Life Insurance, it continues to remain valid. Existing policies are serviced by IndusInd Nippon Life Insurance, and policyholders can continue paying premiums, requesting policy statements, updating nominee details, or applying for a loan against their Reliance Life or Reliance Nippon Life Insurance policy.

3. What type of Reliance Nippon life insurance plans are eligible for a loan?

   Except for Reliance Nippon Life term policies, most other Reliance Nippon Life policies are eligible such as Reliance Nippon Life ULIPs and Reliance Nippon Life endowment plans. You can check your loan eligibility here.

4. What are Reliance Nippon Life policy loan interest rates?

   Some Reliance Nippon Life policies are eligible for loans directly from the insurer, whilst others can only be pledged to external lenders such as banks or NBFCs. At Mera Kal, we work with multiple lending partners to help you get the best possible deal, with interest rates starting as low as 8% per annum.

5. What is the amount that I can avail on my Reliance Nippon Life policy loan?

   The loan amount will be dependent on your Reliance Nippon Life policy surrender value or fund value; you can get anywhere between ₹25,000 to ₹1 Crore.

6. What is the tenure for a loan against Reliance Nippon Life Policies?

   There are two options: term loan and overdraft. The tenure of the loan starts from 12 months and goes up to 7 years. This will be dependent on your requirement and your policy eligibility.

7. What documents are required for an Reliance Nippon Life policy loan?

   You will need your original policy document, KYC documents (PAN card, Aadhaar card), 2 photographs and a signed assignment form. Additional documents may be required based on the loan amount and lender requirements.

8. How long does it take to get the Reliance Nippon Life policy loan approval?

   Loan timelines can range from 2 to 7 working days, and are dependent on Reliance Nippon Life’s back office for assignment and verification. Disbursement is usually within a day after the assignment confirmation is received.

9. What is a surrender value?

   Surrender value is the amount that the insurance company pays the policyholder if they decide to terminate the plan before it reaches maturity. The surrender value is determined by various factors, including the type of the policy, premium amount paid, duration for which the policy has been active, term of the policy, bonus accrued and specific terms and conditions of the insurance policy. The delta between the current value of a policy and the surrender value can often be large, making a loan a smart way to optimize the financial outcomes for the customer.

10. How to get a loan on an Reliance Nippon Life Insurance Policy? Can I take a loan against my Reliance Nippon Life Insurance?

    Yes! Reliance Nippon Life Insurance policies typically build a surrender value after at least 2 full years of premium payments. At that stage, you become eligible to take a loan worth up to 80–90% of the surrender value. In the case of single premium policies or ULIPs, you may be eligible for a loan even sooner.

11. When does a Reliance Nippon Life policy become eligible for a loan?

    You can take a loan only after your policy has acquired a surrender value which usually happens after 2 full years of premium payment. The more premiums you pay, the higher your surrender value grows, and the larger a loan you can get. In the case of single premium policies or ULIPs, you may be eligible sooner.

12. How much can I borrow against my Reliance Nippon Life policy?

    You can typically borrow up to 80–90% of the surrender value, or 50%-70% of fund value (in the case of ULIPs). For example, if your surrender value is ₹2 lakh, you could get a loan of around ₹1.6–1.8 lakh.

13. What happens if I surrender my Reliance Nippon Life policy after taking a loan?

    Once you take a loan against your Reliance Nippon Life policy, the policy is assigned to the lender - which means you cannot surrender it until the loan is fully repaid.

    However, if you default on the loan, the lender has the right to surrender your policy to recover the pending dues. In that case:

    • The loan amount (principal + interest) will be deducted from the policy’s surrender value.
    • Any remaining balance will be paid to you.
    • In case the loan dues are higher than your surrender value, you will receive no payout.

14. Is my credit score checked before giving a loan on Reliance Nippon Life policy?

    No, your credit score is not required. This is a secured loan, as your Reliance Nippon Life policy acts as collateral. Lenders do however check against bureau blacklists and watchlists.

15. What is the policy assignment process for Reliance Nippon Life Insurance Policy?

    Assignment is one of the most important steps in a loan against an insurance policy. It means the policy is temporarily assigned to the lender as security for the loan.

    The typical assignment process includes:

    1. Fill in the assignment form
    2. Submit to the insurer
    3. Verification and assignment by the insurer
    4. Confirmation shared with the lender
    5. Once the loan is repaid, the assignment is released and the policy rights revert to the policyholder.

16. What Happens If I Don’t Pay the Premium of my Reliance Nippon Life Policy?

    If you stop paying premiums:

    • The policy may lapse, ending your life cover, or go into "PaidUp" status
    • A lapsed policy reduces your accrued savings
    • You lose both insurance protection and potential maturity benefits
    • Loan eligibility gets affected if the policy lapses before taking the loan

    In order to get a loan against your policy, it is mandatory to have an active policy, as lapsed policies often cannot be pledged.

17. How can I check my Reliance Nippon Life surrender value and Reliance Nippon Life policy loan eligibility?

    Knowing your latest fund value helps estimate your potential loan eligibility.

    1. Customer Portal — Log in using your registered credentials to view your policy information at www.indusindnipponlife.com
    2. Mobile App — The insurer's mobile application provides fund value, policy details, premium information, and statements.
    3. WhatsApp Channel — Message 7208852700 from your registered mobile number and share your policy number when asked.
    4. Customer Care — Customer support can verify your identity and share policy information. Call 1800 102 1010 or email customerservice@indusindnipponlife.com
    5. You can also check your Reliance Nippon Life loan eligibility here.

18. Which is better — surrender or take a loan against my Reliance Nippon Life policy?

    If you surrender:

    • You give up life cover and long-term benefits.
    • Early surrender often leads to low payouts.

    If you take a loan:

    • Your life insurance cover continues, and your maturity benefits stay intact.
    • You can meet urgent financial needs without giving up the policy’s long-term value.

19. Answers to some other common problems faced by policyholders

    • I have an old Reliance Nippon Life policy: It generally remains valid under IndusInd Nippon Life Insurance.
    • I don't know my policy number: You can retrieve it through your policy documents or customer support.
    • I don't know my fund value: It can be obtained through the customer portal, mobile app, annual statement, or customer care. You can also calculate a tentative fund value using our calculator.
    • I have missed a premium: The policy may need to be active before becoming eligible for a loan.
    • I lost my policy bond: You may request a duplicate policy or check whether an e-policy is accepted.
    • My policy is already assigned: A policy assigned to another lender or to the insurer cannot be reassigned until the existing assignment is released.
    • My policy is still in the old name: Policies issued under Reliance Life Insurance or Reliance Nippon Life Insurance continue to be serviced by IndusInd Nippon Life Insurance.