| Eligibility |
Advancing against the security of Life Insurance Policies (LIP). It considered in individual cases on merits after ensuring the following:
- There are no encumbrances on the relative policy.
- The age of the assured stands admitted in the book of the respective companies.
- Premium is paid up to date
|
| Limit |
- Need Base – Maximum 90% of Surrender value of Life Insurance Policy
|
| Nature |
- Term Loan / Demand Loan/ Overdraft facility
|
| Margin |
- 10% of the Surrender value of LIP
|
| Interest rate |
- Competitive rate (subject to change)
|
| Repayment |
Demand Loan/OD Facility
- The tenor of loan shall not exceed one year. The loan may be renewed where the account of borrower enjoying Advance against LIP is regular and due interest is settled.
Term Loan
- Maximum 5 years or up to the tenure/maturity of Life Insurance Policy whichever earlier.
|
| Procedure for calculation of Surrender Value |
- Surrender value shall be calculated from the concerned office of Insurance.
|
| Companies approved for allowing advance against LIP |
- Rastriya Beema Sansthan
- National Life Insurance Company
- Life Insurance Corporation (Nepal) Ltd. &
- Met Life ALICO
- Nepal Life Insurance Corporation
|
