Policy loan interest rates and fees
Mera Kal advertises interest rates starting at 11% per annum for loans against eligible life insurance policies. Your offered rate, fees and repayment terms depend on the lending partner, policy and eligibility assessment.
Mera Kal facilitates applications. The lending partner decides whether to approve the loan and sets its terms.
What does “starting at 11% p.a.” mean?
It is an advertised starting rate, rather than a rate guaranteed for every applicant or policy. The rate alone does not describe the total borrowing cost. Review the lender’s written offer for the interest calculation method, repayment schedule and applicable charges.
Which fees and terms should I check?
Fees and limits are specific to the lender and offer. This page does not quote a universal processing fee or promise that a charge is waived.
| Detail | What to confirm |
|---|---|
| Interest | Annual rate, calculation basis, payment frequency and how interest is charged on an overdraft. |
| Processing and other fees | Amounts or percentages, applicable taxes, when fees are charged and whether any are deducted from disbursement. |
| Repayment | Instalments or interest payments, principal repayment date and any renewal requirements. |
| Early repayment | Any prepayment or foreclosure charges and conditions. |
| Missed payments | Applicable charges and consequences for the pledged policy. |
| Eligibility and loan amount | Eligible policy, lender valuation, approved borrowing limit and required documents. |
Does borrowing preserve all policy benefits?
You must continue paying premiums that are due to keep the policy active. An unpaid loan and interest can reduce policy proceeds. If the lender surrenders the pledged policy to recover unpaid debt, the life cover ends. Read the policy and loan terms before deciding.
Read the repayment and policy-benefit FAQsHow does this differ from borrowing directly from my insurer?
A direct policy loan is offered by the insurer where your policy permits it. A loan through Mera Kal is assessed by a lending partner using an eligible policy as collateral. Compare both available offers using the same loan amount and repayment period, including all charges.
Insurer-specific guides explain borrowing against policies issued by those insurers. They do not by themselves establish a lending partnership with an insurer.
Can a calculator confirm my loan offer?
Calculator results are estimates. Your insurer can confirm policy values, and the lending partner assesses eligibility and the final loan amount. An estimate is not an approval or a guaranteed payout.