The LIC Loan Application Form No. 5205 is used to apply for a loan against a Life Insurance Corporation of India (LIC) policy. Below are key details to guide you:
Purpose of Form 5205
This form allows policyholders to request a loan against the surrender value of their eligible LIC policies (e.g., endowment plans, money-back policies). The loan amount is typically a percentage of the policy’s surrender value.
Key Requirements
- Eligibility:
- The policy must have acquired a surrender value (usually after 3 years of premiums).
- Not all policies qualify (e.g., term insurance plans are excluded).
- Documents Needed:
- Original LIC policy document.
- Identity proof (Aadhaar, PAN, passport, etc.).
- Address proof.
- Recent premium payment receipts.
- Completed Form 5205.
- Form Details:
- Policyholder’s name, policy number, and loan amount requested.
- Terms and conditions (interest rate, repayment period).
How to Submit
- Download the Form:
- Available at LIC branches or the official LIC portal (https://www.licindia.in).
- Confirm the form number is current, as updates may occur.
- Submit to LIC:
- Visit your nearest LIC branch with the filled form and documents.
- A loan agreement may need signing upon approval.
- Processing:
- LIC verifies the policy’s surrender value and disburses the loan (via check/account transfer).
Important Notes
- Interest Rates: Loans accrue interest (check LIC’s current rates).
- Repayment: Outstanding loans (with interest) are deducted upon maturity/claim settlement.
- Agent Assistance: Contact your LIC agent for guidance or clarifications.
For the latest updates, always verify with LIC directly or through their official website.
