Published on Jun 15, 2020Updated on Oct 14, 2026
In the event of a sudden financial emergency, your only way out may be a loan. Under such circumstances, a personal loan is the fastest option available. However, the amount is usually disbursed all at once, and the interest is applied to the entire principle, regardless of how you use the money. Hence, at times, if you need a loan and you are not sure of the amount, taking a personal loan may feel tricky.
Alternatively, you may need a long repayment tenure whereas personal loan generally has a maximum repayment period of 5 years. There is also a limit to the loan amount which can be availed through a personal loan. However, if you have financial assets such as stocks, bonds, mutual funds or insurance, you can actually leverage them to receive a line of credit.
With a Loan against Security, you pledge financial assets based on which you are given a limit. Within this limit, you can borrow as much as you need and only pay interest on the amount you have borrowed. Loan against Insurance policy is a product that is offered by many lending institutions, which enables you to enjoy the aforementioned benefits.
However, do note that you can borrow against select life insurance policies only. For example, a permanent or whole life insurance policy qualifies for a loan application. On the other hand, a term life insurance which is a cheaper option that may people invest is not accepted as a document valid for a loan against policy. This is simply because it does have a cash value and is applicable for a specific period of time only.
Must Read: Types of Loans Available in India
SMFG India Credit has introduced loan against securities that allows you to pledge financial instruments like mutual funds, bonds, etc. However, at the moment, we don’t offer loans against insurance policies.
Read on to know more about Loan Against Securities from SMFG India Credit.
Interest rates on loan against securities are competitive ranging between 11% to 18% per year. You can get a loan approved for a minimum of Rs. 5 lakhs to Rs. 5 crores. You can avail between 50% to 85% of the value of the security being put up for collateral. The value percentage is also determined by the type of security being pledged.
When taking out a loan against securities, you are essentially borrowing from yourself. Having that said, still, need certain eligibility criteria to be met before the loan is sanctioned.
Take a look at some of the basic criteria.
You need following documents to avail a loan against securities from SMFG India Credit.
Must Read: What is the Difference Between Secured and Unsecured Loan?
You can apply for a loan against securities at SMFG India Credit by submitting your interest online. Alternatively, you can also visit a SMFG India Credit branch located close to your home or office to share an interest in their loan application in person.
Choosing to place your loan application online through the SMFG India Credit website entails the following processes.
For more information, write to SMFG India Credit at or call customer service on their toll-free number 1800 103 6001.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
The content of this article is for information purposes only and does not constitute as, an offer or advise to avail any products or services from, or, a commitment to grant any loan by the company. It is not intended to create any rights or obligations against us. All content is provided "as is" without any warranty of any kind, either express or implied & we disclaim any warranty or representation, whatsoever, in regards to the content. Please refer to the Privacy Policy of the company to understand the use, processing and storage of your personal data.
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Insurance disclaimer SMICC is registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a Corporate Agent. IRDAI Registration No.: [CA0098] CIN No. U65191TN1994PLC079235. The insurance policy is a contract between the customer and the insurance company, and policy is underwritten by insurance companies. SMICC acts only as the distributor and is not responsible for any risk, policy issuance, claim settlement/repudiation etc. Insurance is the subject matter of solicitation. Purchase of insurance is voluntary and subject to insurer underwriting and policy terms and conditions. Customers are advised to read the policy terms and conditions, benefits, exclusions, claim settlement carefully before purchase. Kindly note that “Insurance Products” are not mandatory for the purpose of the application and disbursement of loan. It shall be the sole discretion of the customer, by providing explicit consent, to avail such insurance along with the Loan.
Beware of Spurious calls/ Fraud phone calls IRDAI is not involved in activities like selling Insurance policies, announcing bonus or investment of premium. Public receiving such phone calls are requested to lodge a police complaint.
