In the circular issued by IRDAI, it has been said that now the repayment of the loan taken on the insurance policy with the credit card has been banned with immediate effect.
Insurance regulator IRDAI has prohibited repayment of loan against mortgage of insurance policy by credit card. After this, if someone has taken a loan on an insurance policy, then he will not be able to pay it with a credit card.
A circular has also been issued by the Insurance Regulatory Development Authority of India (IRDAI), in which the repayment of loans taken against all types of life insurance with credit cards has been banned. Is. This order has been implemented with immediate effect.
Loss to the insured
On repaying the loan through credit card, the customer gets one month’s interest-free loan, but if he defaults on paying the credit card bill on time, he has to pay a very high interest and he They get caught in the debt trap.
In such a situation, this decision of IRDAI will eliminate the possibility of getting trapped in the debt trap due to loan repayment from credit card and protect the interests of the customers.
PFRDA has also banned
In August last year, a similar decision has also been taken by the Pension Fund Regulatory and Development Authority (PFRDA). Contribution through credit card in Tier-2 of National Pension Fund (NPS) was banned by PFRDA.
Loan is available against life insurance policy
Let us tell you, loan facility is available on all types of life insurance policies. You can avail a loan up to 90% of the insurance policy surrender value. Loan against insurance policy is given faster by the bank than personal loan and the interest rate on it is also very low.
