Key facts
What the official sources publish
Every value belongs to this exact product. Expand any fact to inspect its official evidence in place.
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 excludedView source
Premiums must be current and the policy must stand in the borrower's name.
- Source
- Loan against Insurance Policies
- Page / section
- Eligibility and Eligible security
- Accessed
- 13 Aug 2026
- Confidence
- high
Maximum financeUp to 85% of policy surrender value, with no published rupee ceilingView source
The insurer-confirmed surrender value and appraisal determine actual finance.
- Source
- Loan against Insurance Policies
- Page / section
- Features
- Accessed
- 13 Aug 2026
- Confidence
- high
Published margin by tenor15% up to 12 months, 25% up to 24 months and 30% up to 36 monthsView source
Longer published tenors require a higher borrower margin.
- Source
- Loan against Insurance Policies
- Page / section
- Features — Margin
- Accessed
- 13 Aug 2026
- Confidence
- high
Current published rate11.20% p.a. effective 15 August 2025, based on one-year MCLR of 8.70% plus 2.50%Effective 15 Aug 2025View source
The current table supplies the complete rate missing from the older product page.
- Source
- Loans Against Securities and Bank Time Deposits — Rate of Interest
- Page / section
- Loans Against Securities rate table
- Accessed
- 13 Aug 2026
- Confidence
- high
Maximum repayment period36 monthsView source
The page states loans should be repaid within three years.
- Source
- Loan against Insurance Policies
- Page / section
- Repayment
- Accessed
- 13 Aug 2026
- Confidence
- high
Processing fee0.35% of loan amount, minimum ₹500 and maximum ₹2,500, plus applicable GSTView source
The page also states that no prepayment penalty applies.
- Source
- Loan against Insurance Policies
- Page / section
- Features — charges
- Accessed
- 13 Aug 2026
- Confidence
- high
Facility and channelDemand loan or overdraft through SBI branches onlyView source
The reviewed page does not publish a digital application route.
- Source
- Loan against Insurance Policies
- Page / section
- Features — Availability
- Accessed
- 13 Aug 2026
- Confidence
- high
Loan typeLoan against an eligible life-insurance policy assigned to SBI; eligible issuers include LIC, India Post, SBI Life, HDFC Standard Life and ICICI Prudential Life.View source
The official page lists the five eligible policy issuers and requires assignment in favour of the Bank.
- Source
- Loan Against Insurance Policies
- Page / section
- Eligible security; Security; Availability
- Accessed
- 28 Aug 2026
- Confidence
- high
TenureLoans should be repaid within 36 months. Margin is 15% for up to 12 months, 25% for up to 24 months and 30% for up to 36 months.View source
The current page publishes the three margin bands and 36-month repayment ceiling.
- Source
- Loan Against Insurance Policies
- Page / section
- Margin; Repayment
- Accessed
- 28 Aug 2026
- Confidence
- high
Prepayment / foreclosureNo prepayment penalties.Effective 24 Jan 2023View source
The current official page explicitly states no prepayment penalties.
- Source
- Loan against Insurance Policies — official product page
- Page / section
- Features — prepayment
- Accessed
- 29 Aug 2026
- Confidence
- high
APRThe reviewed SBI insurance-policy loan page and linked official securities rate table publish effective interest rates, not a separate APR figure or calculation.Effective 15 Aug 2025View source
Both reviewed official sources quote the interest basis and fees but contain no field.
- Source
- Loan Against Insurance Policies and official rate table
- Page / section
- Full product page; linked Loans Against Securities rate table
- Accessed
- 28 Aug 2026
- Confidence
- high
Rate basisOne-year MCLR plus 2.50 percentage points; the SBI rate table lists 8.70% one-year MCLR and 11.20% effective interest for loans against eligible insurance policies (effective 15 August 2025).Effective 15 Aug 2025View source
The published table gives the insurance-policy rate as 8.70% one-year plus 2.50%, producing 11.20% effective interest.
- Source
- Loans Against Securities — rate table
- Page / section
- Loan against Insurance Policies — effective interest rate
- Accessed
- 29 Aug 2026
- Confidence
- high
Maximum loan amountNo fixed rupee ceiling is published; the loan is available up to 85% of the policy surrender value, subject to the applicable margin for the selected tenure.Effective 24 Jan 2023View source
The Features section states up to 85% of surrender value and no ceiling on maximum loan amount.
- Source
- Loan against Insurance Policies — official product page
- Page / section
- Features — loan amount and margin
- Accessed
- 29 Aug 2026
- Confidence
- high
Benefits 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 .
- The product page was last updated in January 2023; current rate evidence comes from 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
- Eligible policy document and current premium evidence
- Insurer-confirmed surrender value
- Policy assignment documentation in favour of
Related official documents
SBI Loans Against Securities — official product pages and rate tableofficial-product-pages-and-rate-table · current · accessed 28 Aug 2026
↗SBI Loans Against Securities and Bank Time Deposits — Rate of Interestofficial-interest-rate-page · current · accessed 13 Aug 2026
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