Now, you cannot repay loan taken against insurance policy using credit card

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The Insurance Regulatory Development Authority of India (IRDAI) has asked insurers to stop the facility of repayment of loans taken against insurance policies using credit cards as a mode of payment. Accordingly, policyholders will not be able to use credit card now as a mode of re-payment of loans granted against insurance policies.

Notably, the Pension Fund Regulatory and Development Authority (PFRDA) last year announced that it will discontinue accepting credit card payments for subscriptions and contributions in the National Pension System (NPS) Tier-II accounts.

According to Conjeevaram Baradhwaj, Executive Vice President (Legal & Compliance) & Company Secretary at Future Generali India Life Insurance Company Ltd, there are instances where policy loans are repaid using credit cards and the customers have 1 month time to repay the credit card dues.

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