Policy loan refers to the loan that the borrower applies for mortgage with a policy with cash value, not a pure credit loan. Because of collateral, some lending institutions may not have high credit requirements and may be able to borrow money.

Borrowers can try to apply, and if they are rejected, they can wait until their credit improves before applying for a policy loan. According to the regulations of the central bank, bad records will be kept for 5 years when bad behaviors are terminated, and will be automatically deleted after 5 years, and then the user's credit will be restored.

Policy loan is a loan obtained from an insurance company with the cash value of life insurance policy as the guarantee.

The one-time loanable amount of such loans depends on the effective year of the policy; The age of the insured and the amount of compensation for death when the policy is issued.

The so-called policy loan refers to a loan method in which the insured mortgages the policy he holds to the insurance company and obtains funds according to a certain proportion of the cash value of the policy. Since the customer's insurance protection is not affected in the process of pledge loan, the policy is still valid.

2. Loans obtained from insurance companies with the cash value of life insurance policies as the guarantee.

The one-time loanable amount of such loans depends on the effective year of the policy; The age of the insured and the amount of compensation for death when the policy is issued. Although recent insurance policies usually only allow borrowing at interest rates linked to the money market, the interest rate of such loans to policy holders is often lower than the market interest rate.

If the insured fails to repay the loan, the principal and interest of the loan will be deducted from the death compensation in the life insurance policy. Under normal circumstances, policy loans can only be targeted at policies with' cash value'. Long-term life insurance with saving nature, such as endowment insurance, whole life insurance, endowment insurance, universal insurance and dividend insurance, will have cash value after one year of insurance, and the longer the payment time, the higher the accumulated cash value. These policies can usually be used for policy loans, but the specific situation depends on the specific terms in the insurance contract.