Loan Against Traditional Policy

What is LAT?

LAT stands for loan against traditional policy. Traditional products offer a liquidity feature that allows customers to avail loan against their ICICI Prudential traditional policy as per the defined eligibility.

Life is full of moments when you need extra financial support whether it’s for child’s education, medical expenses, or any other immediate needs. ICICI Prudential traditional policy not only provides protection cover, long term savings needs but can also fulfil your short term immediate financial requirements.

Customer can leverage their ICICI Pru insurance policy to avail loan at the best compatible interest rate without compromising their loved ones’ long-term financial security.

What is the eligibility to avail LAT?

Policy to attain surrender value
Policy status "In Force" or "Paid Up"
Loan to Value ratio (LTV) against Surrender value 80%
Applicable products

Which type of insurance policies can I get a loan on?

You can typically get a loan against traditional life insurance policies. Please refer Annexure I for eligible product list.

How much can I borrow against my policy?

The loan amount depends on the surrender value of the policy. You can borrow up to 80% of the surrender value subject to terms and conditions.

What is the interest rate on these loans?

^* Interest rates for loans against insurance policies are between 7% to 8% compounding half yearly and interest rates offered are best in the industry.

Interest rates^* are subject to revision

Are there any loan processing fees?

Processing fees of ₹ 250 + GST will be applied which will be deducted from the loan amount.

What happens if I don't repay the loan?

ICICI Pru Life shall be entitled to deduct such outstanding amount together with all interest due up to the date from the benefit amount that is payable. The remaining balance if any, shall be paid under the policy in accordance with the terms and conditions of the policy.

Is the loan amount taxable?

Loans against insurance policies are not taxable, as they are considered loans and not income.

How to Apply for loan?

We have end to end digital process for your convenience, please login to our Mobile application or visit ICICI Pru Life website at the below path:

Path

MobileApp - IPRU Mobile App > All Services > Loan Against Policy > Apply for Loan

Apply on App

Website - www.iciciprulife.com > Login >My Dashboard page > Click on 'My Policy' tab and select the policy for the loan.

Apply Online

Walk-in to your nearest ICICI Prulife branch.

To watch video, click here

Can I prepay the loan before the term ends?

Yes, you can repay the loan partially or fully without any charges and can close the loan.

Can I repay the loan digitally?

Yes, loan amount can be paid through our Mobile App or Website.

Does taking loan against policy require credit score check?

While taking loan against policy, there is no credit score check.

So, when in need, don't let your policy sit; explore the possibilities and embrace the financial flexibility it can offer! Unlock financial flexibility today with ICICI Prudential’s LAT feature! Your long-term investments remain secure, and you get the funds instantly.

COMP/DOC/Apr/2025/144/0051