The amount of loan you want 

While you may require a certain amount of loan, the actual amount you will get will be based on your eligibility. The loan amount you will get is the percentage of the loan’s surrender value, which can be up to 85-90% with guaranteed returns. Therefore, the loan amount you will get will depend on your monthly premiums, the type of fund, and the current value of the corpus. After the loan amount is decided, the lender is assigned with the policy, meaning all the rights of your insurance policy will be transferred to the lender. The lender will then sanction the loan amount to you – the borrower.  On the other hand, this type of loan is not taxable since the income tax authorities don’t recognize the loan amount as income.