Loan Against ULIP Policy

Let’s discuss the benefits as to why you should consider loan against ULIP policy. 

What is a ULIP?

A ULIP is a unique financial product that combines the benefits of insurance and investment. It offers you the opportunity to grow your wealth while providing a life cover to protect your loved ones. ULIPs allow you to invest in various funds based on your risk appetite and financial goals, giving you the flexibility to choose between equity, debt, or balanced funds.

What are the Benefits of Availing a Loan Against ULIP Policy? 

• Quick and Convenient: By opting for a loan against your ULIP policy, you can access funds quickly and conveniently, without going through the lengthy process of applying for a traditional loan. The loan amount is determined based on the surrender value of your policy, ensuring a smooth and seamless experience.

• No Need to Surrender Policy: Unlike traditional loans where you may be required to surrender your assets, a loan against your ULIP policy allows you to retain ownership of your investment. You can continue to benefit from the potential growth of your ULIP while utilizing the loan amount for your immediate financial needs. Similar to how asset allocation improves the best SIP investment outcome. You can calculate the maturity value of your ULIP policy by using the SIP calculator available. 

• Competitive Interest Rates: Companies offer competitive interest rates on loans against ULIP policies, ensuring that you have access to affordable financing options. This helps you manage your finances effectively while minimizing the burden of repayment.

• Flexibility in Repayment: Individuals have unique financial circumstances. Therefore, companies provide flexible repayment options for the loan against your ULIP policy. You can choose a repayment tenure that suits your needs, making it easier to repay the loan without straining your finances.

• No Prepayment Penalty: If you wish to repay the loan before the completion of the chosen tenure, companies usually do not impose any prepayment penalties. This allows you to clear your debts at your convenience and save on unnecessary interest payments.

List of ULIP Funds ^~

Returns 3 Years 5 Years 10 Years

Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Equity Fund

SBI

AUM:81,769 Cr

81,769 Cr

NAV

210.13

-1.08%

Returns

12.66%

Returns

14.4%

Highest Returns

Returns

12.54%

Get Details

Opportunities Fund

HDFC Standard

AUM:36,970 Cr

36,970 Cr

NAV

78.94

-0.21%

Returns

17.78%

Returns

20.53%

Highest Returns

Returns

14.88%

Get Details

High Growth Fund

Max Life

AUM:11,792 Cr

11,792 Cr

NAV

118.06

-0.42%

Returns

25.43%

Returns

26.3%

Highest Returns

Returns

19.07%

Get Details

Opportunities Fund

ICICI Prudential

AUM:3,553 Cr

3,553 Cr

NAV

62.33

-0.26%

Returns

15.64%

Returns

17.23%

Highest Returns

Returns

13.4%

Get Details

Multi Cap Fund

Tata AIA

AUM:9,302 Cr

9,302 Cr

NAV

65.44

-0.22%

Returns

18.88%

Returns

22.37%

Highest Returns

Returns

21.09%

Get Details

Accelerator Mid-Cap Fund II

Bajaj Allianz

AUM:5,748 Cr

5,748 Cr

NAV

83.64

-0.28%

Returns

16.97%

Returns

18.03%

Highest Returns

Returns

14.39%

Get Details

Multiplier

Birla Sun Life

AUM:4,916 Cr

4,916 Cr

NAV

98.47

-0.24%

Returns

17.62%

Returns

19.93%

Highest Returns

Returns

15.84%

Get Details

Frontline Equity Fund

Kotak Mahindra OM

AUM:4,690 Cr

4,690 Cr

NAV

71.55

-0.26%

Returns

16.11%

Returns

18.01%

Highest Returns

Returns

14.73%

Get Details

Pension Mid Cap Fund

PNB Metlife

AUM:4 Cr

4 Cr

NAV

11.56

-0.02%

Returns

25.1%

Returns

31.41%

Highest Returns

Returns

18.41%

Get Details

Growth Plus Fund

Canara HSBC Oriental Bank

AUM:515 Cr

515 Cr

NAV

38.99

-0.19%

Returns

12.52%

Returns

13.46%

Highest Returns

Returns

11.46%

Get Details

US Equity Fund

Star Union Dai-ichi

AUM:0 Cr

0 Cr

NAV

0.00%

Returns

-

Returns

15.2%

Highest Returns

Returns

14.8%

Get Details

Global Artificial Intelligence Strategy

India First

AUM:0 Cr

0 Cr

NAV

11.71

-11.71%

Returns

-

Returns

26.94%

Highest Returns

Returns

-

Get Details

Grow Money Plus Fund

Bharti AXA

AUM:440 Cr

440 Cr

NAV

71.76

-0.40%

Returns

13.2%

Returns

15.64%

Highest Returns

Returns

15.06%

Get Details

Equity Top 250 Fund

Edelwiess Tokio

AUM:541 Cr

541 Cr

NAV

58.98

-0.31%

Returns

12.62%

Returns

14.72%

Highest Returns

Returns

11.84%

Get Details

Future Apex Fund

Future Generali India

AUM:113 Cr

113 Cr

NAV

58.57

-0.18%

Returns

13.6%

Returns

17.27%

Highest Returns

Returns

14.24%

Get Details

Pension Dynamic Equity Fund

Pramerica Life Insurance Limited

AUM:6 Cr

6 Cr

NAV

77.42

-0.41%

Returns

12.32%

Returns

14.49%

Highest Returns

Returns

12.17%

Get Details

Accelerator Fund

AEGON Life

AUM:239 Cr

239 Cr

NAV

52.01

-0.19%

Returns

15.81%

Returns

18.46%

Highest Returns

Returns

14.53%

Get Details

Balanced Fund

LIC

AUM:2,684 Cr

2,684 Cr

NAV

19.32

0.05%

Returns

10.33%

Highest Returns

Returns

9.85%

Returns

-

Get Details

see more plans

Disclaimer :
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment 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

How to Apply for a Loan Against ULIP Policy

Applying for a loan against your ULIP policy is a simple and straightforward process:

• Check Eligibility: Ensure that you meet the eligibility criteria set by the company for availing a loan against your ULIP policy. The criteria typically include factors such as the surrender value of your policy, the tenure of the policy, and any outstanding premiums.

• Loan Amount Evaluation: Based on the surrender value of your ULIP policy, comapnies  assess the maximum loan amount you can avail. This amount is generally a percentage of the surrender value, allowing you to retain a portion of your investments.

• Documentation: Complete the necessary documentation, including the loan application form and any supporting documents required by the insurer. These may include your ULIP policy documents, identity proof, address proof, and bank statements.

• Loan Disbursement: Once your application undergoes thorough review and receives approval, the loan amount will be disbursed promptly to your designated bank account. You can then utilize the funds for your intended purposes, whether it's for emergencies, education, home renovation, or any other financial needs.

Wrapping it up!

In conclusion, the Loan Against ULIP Policy offers a viable financial solution for individuals seeking immediate liquidity while maintaining the growth potential of their Unit Linked Insurance Plans (ULIPs). This financial product allows policyholders to leverage the accumulated value of their ULIPs to meet various financial obligations, whether it be for personal or business purposes.