The maximum repayment period of a policy loan is 6 months. When handling the policy pledge loan, the borrower should wait for the insurance company or bank to apply directly with the policy and related documents. The loan amount generally does not exceed 80% of the cash value of the policy. Because it is a short-term loan, the longest loan period is usually 6 months, but the loan can be extended when it expires.
In terms of repayment methods, there are generally two repayment methods for policy pledge loans: 1. The policy loan expires in half a year, and the insured can pay off the principal and interest in one lump sum; 2. If the insured needs to continue to use the fund, he can pay off the interest first and then renew the loan, and then pay off the principal and interest when it expires in the next six months. Now some insurance companies have added a new repayment method, that is, if the customer fails to repay the principal and interest after six months, the interest can be included in the principal when renewing the loan, and then the principal and interest can be repaid after the next six months. In addition, the policy pledge loan has reduced the loanable amount, and now the minimum loan amount is 1000 yuan.
What are the repayment methods?
1, equal repayment of principal and interest
Matching principal and interest repayment can be said to be the most used repayment method now, because in the absence of choice by buyers, the bank defaults to matching principal and interest repayment method. In the monthly repayment of equal principal and interest, the proportion of principal is increasing month by month, and the proportion of interest is decreasing month by month. Add up the total principal and interest of the mortgage loan and distribute it evenly to each month of the repayment period. This repayment method is suitable for families with stable income, buying a house for self-occupation and economic conditions that do not allow excessive investment in the early stage.
2. Repayment by average capital
The repayment method in average capital is just the opposite of the repayment method of equal principal and interest. The so-called average capital repayment method is also called equal principal and interest repayment method. The lender will allocate the principal to each month and pay off the interest from the previous trading day to the repayment date. Compared with equal principal and interest, this repayment method has lower total interest expense, which is more suitable for lenders with strong repayment ability some time ago. Of course, some older people are also more suitable for this method.
3. One-time repayment of principal and interest
The nature of this repayment method is different from that of equal principal and interest repayment and equal principal repayment, and it belongs to a kind of early repayment. The bank's stipulation for this repayment method is that if the loan term is within one year (including one year), the principal and interest will be repaid at the maturity, and the interest will be paid off together with the principal. However, with the change of repayment method, one year is expected to be extended to five years. This method is strictly approved by banks and is generally only open to small short-term loans.