Kathmandu. Life insurance is an important financial instrument for the insured. By pledging the insurance policy, the insured can take loans from the companies in a simple and easy way. The loan amount that the insured can get is determined on the basis of the paid-up value of the policy.
The insurer can avail loan facility against the collateral after receiving the full 3 years of the premium and after the completion of 3 years from the date of insuring of the policy, the loan facility can be availed against the collateral. Even in the insurance policy purchased by paying a single premium, the insured can avail such loan only after the completion of 3 years.
Life insurers have released the current fiscal year 2082. According to the data till the third quarter of 2018-18, 14 companies have disbursed loans to the insured by pledging policies worth Rs 1.07 billion. Previous fiscal year 2081. In the same period of 2018-19, the companies had extended loans worth Rs 97.78 billion. Compared to the previous year, the credit flow increased by 2.34 percent.
In the review period, the loan of 10 companies increased while the loan of four companies decreased. Nepal Life Insurance is the largest lender of loan while IME Life is ahead in terms of loan growth rate.
Nepal Life Insurance has disbursed Rs 36.86 billion in loans till mid-April of the current fiscal year. The company had extended loan of Rs 36.22 billion in the same period last year. Compared to the previous year, the company’s loan flow decreased by 0.59 percent.
Similarly, Life Insurance Corporation (LIC Nepal) is the second largest loan disburser of the company. In the review period, the bank disbursed loans of Rs 21.81 billion to Rs 20.42 billion in the review period from Rs 21.81 billion in the previous year.
The third is National Life. The company has disbursed loans of Rs 20.42 billion till mid-April of the current fiscal year. The company had disbursed Rs 12.17 billion in the same period last year. The company’s credit has increased by 8.90 percent in the review period compared to the previous year.
Reliable Nepal Life Insurance Company has been the least disbursed loan till the end of the current fiscal year. The company has disbursed a loan of Rs 63.40 crore.
In terms of growth rate, IME Life is leading the way with 35.51 percent. The company has disbursed Rs 1.78 billion in loans till mid-April.
How much loan is given to which company?
