Rate of interest charged varies from company to company and time to time. A
policy holder can repay the loan amount either in part or in full any time
during the term of the Policy. If the loan amount is not repaid during the term
of the Policy or early claim, the amount of loan plus interest, if any, will be
deducted from the claim money and the balance amount will be paid to the
claimant.
LIC is currently charging 10.5% interest payable halfyearly on Policy Loans.
For LIC, the minimum repayment should be Rs. 50 and thereafter in multiples of
Rs. 10. If the interest is not paid regularly every half year, then the interest
is calculated on compound interest basis.
If the interest is not paid regularly every half year, then the interest is
calculated on compound interest basis.
