Mumbai: Demonstrating its commitment to offering financial flexibility to policyholders, ICICI Prudential Life Insurance announced that it disbursed over ₹900 crore in loans through its loan against insurance policy facility in FY2025.
Over 42,700 customers leveraged this feature to meet short-term financial requirements without disrupting their long-term life insurance and savings goals.
The loan against insurance policy feature provides liquidity by allowing customers to borrow up to 80% of the policy’s surrender value. This innovative facility ensures the policy remains active, securing both life cover and long-term wealth creation, even as customers address immediate financial challenges.
“Life insurance is a long-term product, and staying invested is key to achieving financial objectives,” said Amish Banker, Chief Operations Officer, ICICI Prudential Life Insurance. “Our loan against insurance policy facility helps customers manage short-term liquidity needs without affecting their long-term plans.”
Loan Against Insurance Policy: Fast, Paperless, and Customer-Friendly Process
The process is 100% digital, with zero paperwork, and more than 98% of loans were disbursed within 24 hours in FY2025. Notably, 52% of customers availed of the loan through digital touchpoints like the ICICI Prudential Life website and mobile app. The company has also digitized the loan repayment process, simplifying management throughout the loan tenure.
Growing Popularity Among Policyholders
ICICI Prudential Life reported a 60% year-on-year growth in loans disbursed under this facility, indicating increasing customer reliance on this feature.
Importantly, loans availed through this route do not impact customers’ credit scores, and can also be used for paying insurance premiums, thereby ensuring uninterrupted policy benefits.
With one of the lowest interest rates in the BFSI sector, this facility has emerged as a popular option for customers looking to balance financial obligations with long-term planning.
