Kolkata: Secured loans can be taken by offering an asset as a collateral to a lending institution like a bank or an NBFC (non-banking financial institution). An insurance policy, especially an endowment policy (and not a ULIP) can be given as a collateral for this purpose but many insurance policyholders are not aware of this facility.

In fact, this is one of the USPs of a life insurance policy — that it can be offered as a collateral to get a loan. If you have a life insurance policy and are looking for a loan, you can use it to get access to loan funds. Here are the details.

The first point to note is that all life insurance policies are not eligible to be pledged as an........

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