Sample letter of application to the Branch Manager for personal loan against insurance policy

One requires funding/cash for various purposes throughout life. Cash at hand is not always possible to keep and such scenarios demand personal loan to be acquired in order to complete task/ projects beforehand. One of the most popular ways of acquiring capital for funding major expenditure such as starting a new business, buying a property and so on, is to apply for personal loan against insurance policy. However, the insurance company must be convinced that the loan applicant has the required credibility to pay back the loan in future. The insurance company also needs to know why the fund is required and how is it going to be used. 

Generally, a loan is given against an asset such as insurance policy so that the company can have a guarantee in case the client fails to repay the loan. It is necessary to have first-hand information regarding the type of loan being sought such as the maximum loan amount, the duration of the loan, the interest etc. All the information can be obtained from the insurance company by approaching them. This is a simple request letter to a Branch Manager for personal loan against insurance policy. The article addresses the question of properly presenting the request to the concerned person. The letter can be modified according to need and preference.

To
The Branch Manager
LIC
Branch Name
Address of LIC

Sub: Application for personal loan against insurance policy

Dear Sir/Madam,

                                      With due respect, I bring to your notice that I had opened a Life Insurance policy in your [LIC, Branch name] dated [Policy opening date]. The policy number is [policy number] which was for a fixed sum of Rs ten lakhs  for a period of 5 years. All my quarterly premiums are cleared as of today.

                                      I would require a sum of 2 lakhs for the higher of my son which I propose to take as personal loan from your bank against the above mentioned lic policy. Hence, I would request you to kindly process and grant my loan application. I have gone through the terms and conditions of the loan and I accept all the conditions including paying the monthly installments on time. I will be highly grateful for the financial assistance as personal loan.

                           

                                    I am attaching the below mentioned enclosures for processing the loan. I would be very much happy to oblige any other formalities required by the bank. In case, the bank requires any other clarification, I can be contacted at [mobile number] or by email [email address].

                                         Hoping for a positive response

                                                                                                    Yours faithfully,

                                                                                                    Your name

                                                                                                    Your address

                                                                                                    Your Contact No.

Date:
Place:

Enclosures:

1. ID proof

2. Address proof

3.Other documents as required