ICICI Prudential Life Insurance has disbursed loans exceeding ₹900 crore against traditional life insurance policies during FY2025, benefiting over 42,700 customers. This facility, which allows policyholders to borrow up to 80% of the policy’s surrender value, has seen a 60% year-on-year growth in disbursals.
The company highlighted that over 98% of these loans were disbursed within 24 hours through a fully digital, paperless process. Customers can conveniently apply via the insurer’s website or mobile app. Commenting on the development, Amish Banker, Chief Operations Officer, said, “The loan against policy feature ensures customers can access liquidity without disrupting their long-term savings. The increasing adoption shows that policyholders remain committed to their financial goals.”
Financial advisors report a growing reliance on traditional life insurance as both a protection and funding tool. Local policyholders are increasingly using policy loans to manage short-term cash needs without surrendering their plans, especially for critical expenses such as education and healthcare. Moreover, many customers used these funds to maintain premium payments, preserving the continuity and benefits of their life cover.
