Prices Increasing soon Prices Increasing Soon

PLI Interest Rates

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. 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.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

PLI Interest Rate and 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 The Postal Life Insurance (PLI) Interest Rate On Loans?

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:

  • The policyholder has to pay the interest on a half-yearly basis at the prescribed rate.

  • The interest on loans against PLI policies is calculated on a on six monthly basis. This payment has to be done by the due date. 

  • If it is not paid by the due date, the interest amount is added to the outstanding loan. The prescribed rate of interest shall ply on the total amount from then onwards. 

  • If the insurant defaults thrice on the half-yearly interest payment, the insurer shall surrender the policy.

  • Consequently, the applicable surrender value shall be used to pay off the outstanding loan and the unpaid interest. 

  • Once the policy is surrendered by the insurer after defaulting on payments, the benefits under the base postal life insurance policy shall stand void. 

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. 

Availability Of Loan Facility Across Postal Life Insurance Policies

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

FAQ's

  • 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.

Different types of Plans


Premium By Age

Life insurance articles

Recent Articles
Popular Articles
What High Net Worth Individuals (HNIs) Do To Secure Their Family?

09 Aug 2023

High net worth individuals often opt for life insurance plans to
Read more
A Review Of ICICI Prudential Life Insurance

28 Jun 2023

“Policy Bazaar insurance clarified the term policy for me, so
Read more
A Review Of HDFC Life Insurance

27 Jun 2023

“I recently bought an HDFC term plan and it is the best
Read more
Best Life Insurance Policy in India with High Returns

20 Jun 2023

The best life insurance policy in India is a type of life
Read more
Which Insurance is Best in India?

20 Jun 2023

Insurance is a financial product that transfers the risk to a
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is about the financial protection of the family and working for life’s milestones through smart
Read more
Life Insurance Claim Settlement Ratio
The Claim Settlement Ratio is a percentage that represents the ratio of claims paid to customers by an insurance
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI
Read more
SBI Life Insurance Policy Surrender Value Calculator
Are you planning to surrender your SBI life insurance plan? But, are you aware of the amount attached to the
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL