Life Insurers Extend Nearly NPR 95 Billion in Policy Loans
Kathmandu — Life insurance companies operating in Nepal extended a total of NPR 94.78 billion in policy loans to their policyholders during the fourth quarter of fiscal year 2025/26 (2-82/83), according to the latest financial disclosures.
The total amount was 0.77 percent lower than in the corresponding period of the previous fiscal year. By the end of the previous fiscal year, life insurers had extended a combined NPR 95.52 billion in policy loans.
A policy loan is a loan that a policyholder can obtain from the respective insurance company against the surrender value of an insurance policy. Interest is charged at a rate determined by the insurer, with repayment governed by the terms and conditions of the policy.
Nepal Life Insurance has maintained its lead in policy lending. The company had extended NPR 34.32 billion in policy loans by the end of the fourth quarter. Although this was 0.63 percent lower than the previous year, Nepal Life alone accounted for more than 36 percent of the total policy loans extended by the life insurance sector.
LIC Nepal and National Life Insurance ranked second and third, respectively. LIC Nepal extended NPR 20.07 billion in policy loans, down 5.80 percent from the previous year. National Life’s policy loan portfolio declined by 12.82 percent to NPR 12.33 billion. Himalayan Life, meanwhile, increased its policy lending by 7.72 percent to NPR 8.54 billion.
Among the mid-sized insurers, Asian Life and SuryaJyoti Life recorded notable policy lending volumes. Asian Life extended NPR 5.25 billion in policy loans, while SuryaJyoti Life increased its policy lending by 10.52 percent to NPR 5.17 billion. Sanima Reliance Life recorded a 23.33 percent increase, extending NPR 1.93 billion in policy loans, while MetLife’s policy loan portfolio stood at NPR 1.76 billion.
Among the relatively newer insurers, Prabhu Mahalaxmi Life and IME Life recorded strong growth in policy lending. Prabhu Mahalaxmi Life increased its policy loans by 23.33 percent to NPR 1.50 billion, while IME Life recorded a higher growth rate of 30.44 percent, taking its policy loan portfolio to NPR 1.26 billion. Citizen Life’s policy loans also increased by 21.68 percent to NPR 1.23 billion.
Among the smaller insurers, Sun Nepal Life extended NPR 770.9 million in policy loans, while Reliable Nepal Life increased its policy lending by 25.64 percent to NPR 663.8 million.