KATHMANDU – Bimalekh Deto Loan is a loan taken by securing the life insurance policy purchased by the insured from insurance companies. It varies according to the nature of such loan insurance plan. Generally, when insurance companies disburse loans, the surrender value is calculated based on the insurance fee paid by the insured to the insurance company and the loan is given based on the same valuation.

The insured must have paid the insurance fee (premium) for at least three years to take the loan against the policy. The insured who has paid up to three installments of insurance premium can get a loan from the insurance company without securing any type of movable or immovable property other than the insurance deed. The insured will not be allowed to surrender the insurance policy until the loan from the insurance company is paid off. According to the provisions set by the insurance committee, a maximum loan of 90 percent of the insurance premium paid by the insured can be granted.

The loan secured by the policy can be repaid at any time during the insurance period. In case the insured is unable to repay the loan, the insurance company has the right to recover the loan from the insurance fee itself. If the insurance company dies without paying the loan or if there is any other risk, the remaining amount after deducting the loan is provided to the insured if the insured is insured and to the person desired by the insured if the insured is not insured. The interest rate of the loan secured by the insurance policy is set by the insurance companies themselves at different interest rates. In case of insurance, the loan is given on the same day, but the interest has to be paid every three months.