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Loan Against Policy Calculator
Result
Chart
Show formula & working
Maximum loan = Surrender value × lending share
Interest paid = Loan × rate × months ÷ 12 · Unpaid: Loan × (1 + rate ÷ 2)months ÷ 6 (half-yearly compounding)
Details
IRDAI rule on policy loans: rates and rules as of 31-Oct-2026 · Source: IRDAI Master Circular on Life Insurance Products (IRDAI/ACTL/MSTCIR/MISC/89/6/2024, 12 June 2024), under the IRDAI (Insurance Products) Regulations, 2024 — the current master circular on irdai.gov.in when checked. Every figure based on it stays editable.
How this works
IRDAI requires every non-linked savings policy that has a surrender value to offer a loan against it. The policy stays in force while the loan runs; the share lent, the rate and how unpaid interest is added come from your policy terms.
If interest is not paid, it is added to the loan. Once the loan and interest exceed the surrender value, the insurer can foreclose the policy.
Frequently asked questions
Which policies allow loans?
Usually traditional policies — endowment and money-back plans — once they have acquired a surrender value. Term plans have no surrender value. Your policy document has the terms.
What happens to the claim if I die with a loan outstanding?
The insurer deducts the outstanding loan and interest from the claim amount.
Talk to Rytvae
Compare lenders, structure the loan and plan prepayments with someone who reads sanction letters for a living.