PLI Interest Rate 2024 : PLI Scheme & Eligibility

By Okbima 04 Mar 2024


PLI Interest Rate is 10% per annum which you have to pay every six months. PLI full form stands for Postal Life Insurance, introduced in 1884, PLI scheme was created to motivate employees of both the Central and State Governments to secure life insurance. Six unique insurance policies were developed as part of the program, including endowment-based plans and child life covers. 


What is Postal Life Insurance (PLI Scheme)?

Postal life insurance, offered in India by the Department of Posts, is a government-backed life insurance scheme. It provides a death benefit to the beneficiary upon the insured's death or a maturity benefit upon reaching a specific age, whichever comes first. 

Different plan options cater to various needs, including pure life cover, money-back plans with periodic payouts, and joint life policies. Being government-backed, postal life insurance offers security and potentially lower premiums compared to some private insurers. 


PLI Interest Rate (PLI Scheme) and Loans

Postal Life Insurance (PLI) does not offer interest on its policies. However, it does allow policyholders to take loans against the surrender value of their policies. 

  • Postal Life Insurance Interest Rate: Not offered.
  • Loans against PLI policies: Available after a certain period (3 years for Endowment Assurance and YugalSuraksha, 4 years for Whole Life and Convertible Whole Life).
  • Loan interest rate: 10% per annum.
  • Interest payment: Every six months.


Some additional points:

  • Pay by the due date to avoid the addition of interest to the remaining loan balance. The interest will be calculated on the total amount owed going forward.
  • If the policyholder misses three consecutive payments of half-yearly interest, the insurance company will cancel the policy.
  • The surrender value will cover the outstanding loan and any accrued interest in such a case.
  • If you don't pay for your insurance, you won't get the benefits.


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Eligibility to Get a Loan With PLI Schemes

There are some conditions to apply for a loan with PLI schemes which are mentioned below.

  • To be eligible for loans against your PLI endowment assurance or Yugal Suraksha policies, you must have completed a minimum of 3 policy years. 
  • For loans against PLI whole-life policies and convertible whole-life policies, a minimum of 4 policy years must be completed. 
  • The maximum amount of loan that can be granted under PLI schemes is 90% of the surrender value, provided the loan amount is at least Rs. 1000. 
  • Multiple loans can be requested if you meet the necessary criteria and are subject to the insurer's discretion.


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Availability of Loan Facility in Different Post Office PLI Scheme

In the chart below, we have mentioned the policies in which you can avail of loan facilities in the Post Office PLI Scheme.

PLI Scheme

Type Of Insurance

Loan Facility

PLI Suraksha

Whole Life Assurance

Available after 4 policy years

PLI Suvidha

Convertible Whole Life Assurance

Available after 4 policy years

PLI Santosh

Endowment Assurance

Available after 3 policy years

PLI Yugal Suraksha

Joint Life Assurance

Available after 3 policy years

PLI Sumangal

Anticipated Endowment Assurance

Not Applicable

PLI Bal Jeevan Bima

Children Policy

Not Applicable


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Advantages to Get a Loan Under the PLI Scheme

There are many advantages to getting a loan under the PLI scheme which is mentioned below:

  • You can get a loan using the PLI scheme with low and affordable interest rates. 
  • The loan amount can help you cover a short-term emergency easily.
  • The process of applying for and managing the loan is straightforward and stress-free.


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In conclusion, the performance of the PLI interest rate is a critical factor to consider when evaluating the potential returns on an investment. By closely monitoring and analyzing these rates, investors can make more informed decisions about where to allocate their funds. The PLI interest rate serves as a valuable indicator of market conditions and can greatly influence the overall success of an investment strategy.


PLI stands out from other life insurance policies by offering a more affordable premium, making it a top choice for many consumers. Also, the bonus rate offered by PLI is 7% or more. In comparison, other life insurance policies have lower bonus rates.

Yes, you can buy but check the eligibility criteria and then visit the India Post ‘Homepage’ section.

Unfortunately, home loans are not currently available.

Interest is calculated at a rate of 10% per annum at the PLI post office, with computations made every six months.

To initiate the process, please visit the closest post office. Keep in mind that there is a waiting period of 3-4 years before you are eligible to apply for a loan using your PLI policy. The application form can be found in Annexure II, which must be completed along with specific declarations for submission.

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