Interest Rates and Repayment Terms for LIC Loans

The interest rates for loans against LIC policies are determined by the corporation and can vary based on the specific plan. Generally, these rates are lower than those for unsecured personal loans. Interest is typically charged on a half-yearly basis. Repayment is flexible; you can choose to repay the principal along with interest or only pay the interest and have the principal deducted from the final claim amount at the time of maturity or death.