Key facts
What the official sources publish
Every value below belongs to this exact product. Select a source marker to check its context.
Eligible collateralBorrower's own in-force life policy from LIC, India Post, SBI Life, HDFC Standard Life or ICICI Prudential Life, assigned to SBI; MWP Act and third-party policies excluded
Source 1Maximum financeUp to 85% of policy surrender value, with no published rupee ceiling
Source 2Published margin by tenor15% up to 12 months, 25% up to 24 months and 30% up to 36 months
Source 3Current published rate11.20% p.a. effective 15 August 2025, based on one-year MCLR of 8.70% plus 2.50%Effective 15 Aug 2025
Source 4Maximum repayment period36 months
Source 5Processing fee0.35% of loan amount, minimum ₹500 and maximum ₹2,500, plus applicable GST
Source 6Facility and channelDemand loan or overdraft through SBI branches only
Source 7Benefits and features
- Finance up to 85% of eligible surrender value
- Demand-loan and overdraft choices
- No published rupee ceiling
- No published prepayment penalty
- Daily-reducing balance interest method
Eligibility
- The borrower must be at least 18 and the sole owner of the in-force policy.
- Third-party policies and policies under the Married Women's Property Act are excluded.
- The policy must be assigned to SBI.
- The product page was last updated in January 2023; current rate evidence comes from SBI's December 2025 rate page and other terms should be reconfirmed before sanction.
Passing a listed condition does not mean the bank will approve an application.
Documents the bank lists
- Branch loan application and KYC
- Eligible policy document and current premium evidence
- Insurer-confirmed surrender value
- Policy assignment documentation in favour of SBI