Policy loan is a new loan method that has appeared in recent years. Mortgaging the insurance policy directly to the insurance company is what we call a policy loan. Mortgage the policy to the bank in the form of pledge is the so-called policy pledge loan. Many people are a little confused when they see this. There is only one word difference between policy loan and policy pledge loan. What's the difference between them?

First, the expected annualized interest rate is different.

Generally speaking, the expected annualized interest rate of policy pledge loans through banks is calculated according to the expected annualized interest rate of commercial loans announced by the central bank, which is usually higher than the expected annualized interest rate of insurance company policy loans.

Second, the procedures and time are different.

Compared with insurance companies, banks also need insurance companies to produce relevant information, such as proof of cash value of policies and proof of policy freezing. These materials must be prepared by the lender.

Because the insurance company needs to confirm and verify, there is no real-time communication channel between banks and insurance companies, so the processing time will be longer than going directly to the insurance company.

Third, the scope of choice is different.

Almost all life insurance companies can make loans for policies that meet the requirements, but the types of policies recognized by banks are limited, and there are fewer banks and outlets that provide this business. For example, Bank of China, although providing policy loans, can only provide loan services for Ping An's life insurance policies. China Merchants Bank does not provide this service in Shanghai.

Four, the loan amount and reference standards are different.

Some banks can provide loans up to 90% of the cash value of the policy at that time; Moreover, some banks will also refer to the lender's credit, the number of deposits and other indicators, and the loan amount may exceed the cash value of the policy. The loan period provided by insurance companies is short, generally not more than 6 months, but it can be renewed any number of times, and the maximum loan amount generally does not exceed 70%~80% of the cash value of the policy.

Therefore, for lenders, whether lending to insurance companies or banks has its own advantages and disadvantages. Relatively speaking, the loan amount provided by insurance companies is limited and the time is short, but the expected annualized interest rate is low and the procedures are convenient; If you choose a bank, the interest is high and the procedures are relatively complicated, but the loan amount is slightly higher and the time is relatively flexible. Therefore, the choice of these two methods needs users to choose according to their actual situation.