 "loan, loans, personal loan")
Insurance companies are increasingly offering secured loans to policyholders using their insurance policies as collateral. According to media reports, the loan outstanding in this segment has risen to ₹1.35 trillion. Life Insurance Corporation (LIC) is the largest player in this segment. Many private insurers have recorded over 25 per cent year-on-year (Y-o-Y) growth on a smaller base.
Meet liquidity needs
A loan against an insurance policy allows customers to meet their temporary funding requirements. “The life insurance policy continues to secure the borrower’s financial future by providing protection,” says Rajeev Chugh, chief financial officer, Generali Central Life Insurance.
Borrowers
