Make your securities work harder for you.
Avail hassle-free advance against security of life insurance.
Baroda Advance Against Securities( Life Insurance Policies)
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Features
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Eligibility
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Interest rates & charges
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Most Important Terms and Conditions (MITC)
Baroda Advance Against Securities( Life Insurance Policies) : Features
Type Of Facility | Term/Demand Loan & Overdraft |
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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 | |
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Loan against Life Insurance Policies, Loan against securities of Relief Bonds / Government Bonds |
ConditionsDemand Loan / Term Loan |
Repo Rate + SpreadBRLLR + SP + 1.50% |
Effective Rate of Interest0.00% |
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ConditionsOverdraft |
Repo Rate + Spread0.25% higher than the ROI applicable to DL / TL i.e. BRLLR + SP + 1.75% |
Effective Rate of Interest0.00% |
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.
Need Assistance?

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Can we get a loan against our insurance policy?
Yes, you can definitely apply for one.
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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%.
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Can we take out a loan against our LIC policy online?
No, presently, online facilities are not available.
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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.
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What are the advantages of taking a loan against the policy?
It comes with a competitive ROI and is hassle-free.
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How much can I avail as a loan?
80 to 85% of the surrender value of the policies.
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What about the repayment tenure of the loan?
Loan: Maximum 60 months
Overdraft: 12 months subject to annual review
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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.