PLI Interest Rates: Latest Update & Features

Postal Life Insurance (PLI) was introduced in the year 1884 to encourage employees of the Central and the State Governments to get life insurance. As part of the initiative, 6 different kinds of insurance policies have been designed ranging from endowment-based plans to child life covers.

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Notably, policyholders can avail of loans against their PLI policies. The repayment of the principal amount involves an additional interest charged at 10% per annum.

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PLI Interest Rate and Bonus Rates on PLI Today

Postal Life Insurance policies don’t provide variable market-linked interest but announce simple reversionary bonus for each Rs.1000 of sum assured. These are some of the currently announced PLI interest rates, i.e., effective at the time of claim or maturity.

PLI Bonus Rates 2025-26

Type of Plan	Bonus per ₹ 1000 SA (₹)
Whole Life Assurance (Suraksha)	₹76/-
Convertible Whole Life Assurance (Suvidha)	₹76/-
Endowment Assurance (Santosh)	₹52/-
Joint Life Assurance (Yugal Suraksha)	₹52/-
Anticipated Endowment (Sumangal)	₹48/-
Children Policy (Bal Jeevan Bima)	₹52/-

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Why PLI Bonus Rates Matter

PLI bonus rates offer consistent, government-backed returns that reflect India Post's robust fund management and long-term financial stability. These reversionary bonuses accumulate annually and are paid at maturity or claim — ensuring steady value growth over the policy term without any market volatility.

For a policyholder with a ₹10 lakh sum assured under the Santosh (Endowment Assurance) plan over a 25-year term:

Component	Estimated Amount
Sum Assured	₹10,00,000
Annual Bonus (₹52 per ₹1,000 SA)	₹52,000/year
Total Bonus over 25 years	₹13,00,000
Estimated Maturity Value	₹23,00,000

This is an indicative illustration. Actual maturity value depends on bonus rates declared annually by India Post.

Did You Know? The Senior Citizens Savings Scheme (SCSS), another popular post office product, currently offers 8.2% per annum interest paid quarterly.

Postal Life Insurance Loans

Postal Life Insurance policies offer policyholders the option to avail of loans against a percentage of the sum assured to finance urgent liquidity needs. In order for the loan to be approved, the life insurance policy has to be in force for a minimum of 3-4 years. Note that PLI policies can only be bought by Government, semi Government employees, and professionals.

What is Loan Against PLI: Features and Benefits ?

The interest rate charged for loans taken against PLI schemes is 10% per annum. Some of the important factors to note with regards to the payment of interest are:

Loan Against Policy: Postal Life Insurance (PLI) allows policyholders to avail a loan against the policy's surrender value, providing quick access to funds without liquidating investments.
No Impact on Credit Score: Since the loan is secured against the policy, it does not affect your credit score and involves minimal documentation.
Eligibility: Depending on the policy type, you can apply for a loan after paying premiums for 3 or 4 years.
Loan Amount: You can borrow up to 90% of the policy's surrender value, subject to the insurer's terms.
Competitive Interest Rate: The loan carries a 10% annual interest rate, which is generally lower than many unsecured personal loans.
Timely Repayment is Important: Delayed or unpaid loan dues may reduce your maturity benefits or even lead to policy surrender, impacting your long-term financial goals.

Conditions To Apply For A Loan With PLI Schemes

Keep in mind the following terms and conditions before applying for a loan against your PLI schemes.

To avail of loans against your PLI endowment assurance or Yugal Suraksha policies, a minimum of 3 policy years has to be completed.
Further, loans against PLI whole life policies and convertible whole life policies can only be availed on the completion of 4 policy years.
The maximum amount of loan admissible under PLI schemes is 90% of the surrender value. This condition is applicable only if the loan amount is not less than Rs. 1000.
You can apply for more than one loan on fulfilling prescribed criteria and is further subject to the discretion of the insurer.

PLI Loan Interest Rate & Key Features

One of the most useful but underutilised features of PLI is the loan facility against the policy's surrender value. It provides instant liquidity without breaking other investments, does not affect your credit rating, and is far more accessible than personal loans.

PLI Loan Interest Rate: 10% per annum, calculated on a six-monthly basis.

Key Features of PLI Loans That Most Policyholders Don't Know

No prepayment penalty: You can close the loan at any time without additional charges, saving on future interest
No credit check required: Approval is based entirely on the policy's surrender value, not your credit score
No guarantor needed: Unlike most personal loans, PLI loans do not require a third-party guarantee
Policy remains fully active: Your sum assured and bonus accumulation continue uninterrupted as long as interest is paid on time
Interest not auto-debited: The policyholder must proactively pay interest every 6 months- a responsibility that must be managed carefully

Eligibility and Conditions for PLI Loan

PLI Scheme	Type Of Insurance	Loan Facility
PLI Suraksha	Whole Life Assurance	Available after 4 policy years
PLI Suvidha	Convertible Whole Life Assurance	Available after 4 policy years
PLI Santosh	Endowment Assurance	Available after 3 policy years
PLI Yugal Suraksha	Joint Life Assurance	Available after 3 policy years
PLI Sumangal	Anticipated Endowment Assurance	Not Applicable
PLI Bal Jeevan Bima	Children Policy	Not Applicable

Smart Tips for PLI Policyholders

Use declared bonus rates to set realistic maturity expectations before purchasing, calculate the estimated maturity value based on current rates to ensure the plan aligns with your financial goal
Pay PLI loan interest on time every 6 months, even a single missed payment increases your outstanding balance, and three defaults can lead to permanent policy surrender
Consider converting Suvidha to Endowment within the eligible window (after 5 years, before the 6th year) if your financial needs change and a fixed maturity date becomes more relevant
Use PLI loans for planned expenses rather than surrendering, taking a loan preserves your cover and bonus accumulation, while surrendering means permanently losing future benefits
Layer your portfolio smartly, PLI provides stability and guaranteed returns; pairing it with other savings or investment instruments ensures you benefit from both capital protection and growth potential

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FAQs

Are home loans available with postal life insurance schemes?

No, home loans are not available.
How is the postal life insurance interest rate calculated?

The PLI post office interest rate is calculated at 10% per annum on a six monthly basis.
How much loan can I avail of with a postal life insurance (PLI) scheme?

The amount of loan that you are entitled to is prefixed at the time of policy inception per the applicable surrender value. The maximum amount of loan that can be availed with a PLI policy is 90% of the acquired surrender value.
How to apply for loan on security of my PLI policy?

You can visit the nearest post office to start the process. Note that there is a waiting period of 3-4 years before you can avail of a loan against your PLI policy. The application for the same is available on Annexure II, which you shall have to submit along with certain declarations.
How to calculate the term insurance premium online?

Ans: You can easily calculate the term insurance plan premium online by using the term plan calculator online tool
What are the benefits of term life insurance?
Ans: Here are 4 common benefits of term life insurance:
- Low premium rates
- Tax Benefits
- Death Benefit
- Long term coverage
What are the key features of term life insurance?
Ans: Below mentioned are the key features of a best term insurance policy in India:
- Affordable premium rates
- Long-tenure life protection
- Easy to understand and buy
- Riders availability
- Whole life protection
- Tax benefits
What are best term insurance plans in India?

Ans: Let's understand what is term life policy here. Term insurance offers financial protection for a certain period to the policyholder, thereby, offering a lump sum payout if the policyholder unfortunately passes away during the policy term.

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Author's Bio

Varun Agarwal IRDAI Certified Term Insurance Expert with 10+ Years of Experience

Varun has spent years in the insurance space, but what drives him isn't policies or premiums — it's the conversations he's had with real people. A young father in Pune wondering if his salary is enough. A newly married couple in Jaipur putting off "the insurance talk" for later. A mother in Chennai who never knew her husband was underinsured until it was too late.
These stories stay with him. As Head of Term Insurance at Policybazaar, Varun knows the numbers well — 52.4% of Indians are aware of term insurance, yet only 9.6% own it. And 87% of families don't realise they're leaving their loved ones with far less protection than they actually need. But behind every statistic, he sees a family that just needed someone to sit with them, explain it simply, and help them take that one step. That's exactly what Policybazaar's term insurance is built to do. In his words, "Most people aren't avoiding protection — they're just waiting for someone to make it easy. That's what we're here for."

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

+On the basis of your profile

+Rs. 410/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10

+Rs. 410/month (Rs.14/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age rounded off to nearest 10

+Rs. 245 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10

+Rs. 15/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10

+Rs. 504/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 494/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 636/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 918/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,286/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 453/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.582/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 786/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,592/month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 525/month is the starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 68 years of age.

+Rs. 668/month is starting price for a 2 crore term life insurance for an 25 year-old male, non-smoker, with no pre-existing diseases, cover upto 45 years of age.

+Rs. 1,200/month is starting price for a 2 crore term life insurance for an 35 year-old male, non-smoker, with no pre-existing diseases, cover upto 55 years of age.

+Rs. 410/month is starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 577/month is starting price for a 1 crore term life insurance for an 18 year-old Male, self employed, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. ₹361/month is the starting price for a ₹1 crore loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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