There may be no doubt that wise people save for their present as well as their future. This is because people are unable to work in old age, due to which their income also becomes zero. Therefore, if saving is done in advance, many options like pension can be made. But on the other hand, it cannot be denied that to meet today's needs, a large section of society has to depend on loans. In such a situation, if you have any insurance policy of your own, then you can take a loan against it also. So let us know what its method and what is its interest rate etc. You can know about this further...
Method of taking a loan
If you want, you can get a loan against your insurance policy. Just for this, you have to talk to your insurance company or the broker through whom you have taken this policy.
Here some of your documents are required and then you can get the loan as per the rules.
How much loan can I get?
If you want to take a loan against your policy, then you need to know that you get this loan as per the type of your policy and its surrender value. If you have taken a money back or endowment policy, you can get a loan up to 80-90 percent of the surrender value. However, it depends on the company itself how much loan you can get.
Talk about interest rate
If we talk about the interest rate charged on the loan, then the interest rate for taking a loan on an insurance policy remains between 10-12 percent. However, when you take a loan, the interest rate depends on your premium amount, loan amount, and other factors.
Know this also
Many times it happens that we take a loan, but after a few EMIs, we face financial problems, which impacts the EMI. In such a situation, if you miss any EMI or default in repayment, your insurance policy may lapse and you may also be charged a fine.
(PC: iStock)
