Winning Bizness Desk

Mumbai. Tata AIA Life Insurance has launched a new service through which policy holders can take an instant loan of up to Rs 1 lakh. This service enables customers to take a loan against their insurance policy without losing coverage. The company has informed that this loan can be taken easily through MyDigiAccount portal. Through this, the loan amount will be deposited in the customer's account within 1 minute. However, policy holders will be able to take this loan on select life insurance policies.

Loan available without collateral or credit check

Tata AIA Life Insurance said the service is designed to provide instant loans with minimum paperwork. In this, the loan will be available at 8.80% interest per annum. No collateral or credit check is required for taking a loan. In April 2024, Tata AIA Life Insurance had reported that its Assets Under Management (AUM) had crossed ₹1 lakh crore. The company has doubled its AUM from ₹50,000 crore (August 2021) to ₹1 lakh crore in less than 3 years. This strong growth was driven by strong Individual New Business Premium (IWNBP), income growth and improved investment performance.

Advantages of taking loan on insurance policy

Winning Bizness telling you about the 3 major advantages of having an insurance policy.

1) No need for credit score: When you take out a loan on an insurance policy, you don't need to go through a credit check. This means that if your credit score is low or there is no credit score, you will get a loan easily.

2) Lower interest rates than personal loans: Interest rates on loans on insurance policies are generally lower than other types of loans like credit cards or personal loans. Interest rate of loan on insurance policy can be 10-13%.

3) No schedule of repayment: Unlike other loans, you usually have no fixed schedule of repayment of the loan taken on the insurance policy. You can pay the loan according to your own schedule. You will have to pay interest.