Make your securities work harder for you.

Avail hassle-free advance against security of life insurance.

  • Features
  • Eligibility
  • Interest rates & charges
  • Most Important Terms and Conditions (MITC)

Baroda Advance Against Securities( Life Insurance Policies) : Features

Type Of Facility Term/Demand Loan & Overdraft
Minimum Loan Limit Term Loan / Demand Loan : Rs.3,000/-
Overdraft: Rs.20,000/-
Maximum Limit Per Individual No Ceiling
Others Life insurance policies issued by private insurance companies can also be accepted as security for considering advances under this scheme.

Baroda Advance Against Securities( Life Insurance Policies) : Eligibility

  • Resident Individuals aged 21 years and above

Baroda Advance Against Securities( Life Insurance Policies) : Interest rates & charges

Product Conditions Repo Rate + Spread Effective Rate of Interest
Loan against Life Insurance Policies, Loan against securities of Relief Bonds / Government Bonds
Demand Loan / Term Loan
Repo Rate + Spread
BRLLR + SP + 1.50%
Effective Rate of Interest
Repo Rate + Spread
0.25% higher than the ROI applicable to DL / TL i.e. BRLLR + SP + 1.75%
Effective Rate of Interest

Processing Charges
  • Rs.500 + GST

Baroda Advance Against Securities( Life Insurance Policies) : Most Important Terms and Conditions (MITC)

  • Advance to third party is not permitted.
  • Endowment policies participating in profits will be preferred.
  • The policies where the premiums are paid for at least -03- years will be accepted.
  • Whole Life policies will not be accepted.
  • Policies issued under Married women’s property Act, 1874 will not be accepted.
  • Policies assigned to a minor will not accepted.

Frequently Asked Questions (FAQs)

  • Can we get a loan against our insurance policy?

    Yes, you can definitely apply for one.

  • What is the minimum amount for a loan against an insurance policy? (In bullet points)

    Minimum: Loan Rs.3,000
    Overdraft: Rs.20,000
    Maximum: No ceiling 

  • What is the interest rate for LIC loans against policies?

    Presently, the rate of loan against insurance policies is 9.20% to 9.45%.

  • Can we take out a loan against our LIC policy online?

    No, presently, online facilities are not available.

  • How to get a loan on my insurance policy?

    For a loan secured by LIC policies that has been assigned to a lending bank, one must go to a closer branch.

  • What are the advantages of taking a loan against the policy?

    It comes with a competitive ROI and is hassle-free.

  • How much can I avail as a loan?

    80 to 85% of the surrender value of the policies.

  • What about the repayment tenure of the loan?

    Loan: Maximum 60 months

    Overdraft: 12 months subject to annual review

  • Is it possible to get a loan against any insurance policy?

    Loans secured by insurance policies are not available. In general, a bank may only permit loans secured by endowment policies.

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This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

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