In times of financial crisis; you may either borrow money from your close ones, take a personal loan or liquidate your lifelong savings. But did you know that you can take a loan against your investments such as insurance policy? You can apply it easily, and there are many advantages of opting for it compared to choosing other sources of finance.
Here are some of the benefits of the loan against insurance policy:
1. Serves as collateral
You don’t need to keep any other or big asset other than your insurance policy to avail this loan.
2. Fewer documents
Your lender already has access to your relevant documents which you had submitted for the insurance. So you don’t have to produce any documents.
4. Better interest rates
Since your lender has a guarantee, you will get this loan at lesser interest rates.
5. Flexible tenure
Despite needing fewer documents and fast approval process, this loan comes with a flexible tenure.
6. No need to liquidate
A loan against insurance policy gives you the freedom to enjoy the benefits of the policy without liquidating it.
These benefits make it an ideal choice when you face a financial crisis. Some lenders even offer online application for hassle-free proceedings.