How to get a loan online| North Loop Official Blog
North Loop Logo
North Loop
18 Sep 2020

How to get a loan online

thumbnail for How to get a loan online
Credit: North Loop

Buying a house or a car involves a great deal of financial planning and laying out a sound financial roadmap. However, one’s responsibilities just get heightened after acquiring a house or a car. Safeguarding your assets from contingent financial liabilities arising from damage or theft can be a hassle for many and it is under these circumstances where insurance policies come in clutch.

So, what exactly are insurance policies you ask? Well, in simple terms, insurance policies are a formal agreement between 2 parties- an insurance company (insurer) and individuals purchasing the insurance policy (insured). The insured individual promises to pay a sum of money regularly to the insurer in exchange for coverage when a financial loss arises.

Types of insurance policies-

In India, insurance policies are broadly classified into the following categories-

  • Life Insurance- This is a type of insurance policy wherein the sum insured (up to the amount of coverage provided) is extended to the family of the insured upon the death of the insured individual.

  • General Insurance- A majority of non-life insurance policies fall under general insurance, such as health insurance, motor insurance, travel insurance, and home insurance.
    Health Insurance includes critical illness cover as well as personal accident cover, whereas motor insurance includes insurance for car online as well as two-wheeler insurance online.
    Travel Insurance includes domestic travel insurance as well as international travel insurance.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

How to buy insurance- Insurance online

This article unravels everything you need to know about insurance- how to buy insurance/how to pay for insurance online, insurance online advantages, documentation required as well as online insurance renewal procedures.

How to Buy Life Insurance Online-

There are 4 types of life insurance policies conventionally, with 2 providing just death benefit upon death of the insured individuals i.e term plans and whole-life insurance policies; while the other 2 being savings-cum life cover plans.

Who are eligible for life insurance?

Conventionally, an individual between the age of 18 years and 65 years is eligible for a life insurance policy. An individual is also required to be a non-smoker to be eligible for life insurance.

Documents required for Life Insurance-

  • Identity Proof

  • Address Proof

  • Age Proof

  • Income-related documents like offer letters, company ID cards, salary slips, etc.

  • Passport Size Photographs.

  • Insurance companies also require individuals to furnish their personal/family medical history before going ahead with the insurance contract.


Tax Benefits on Life Insurance- As per Sec 80C of the Income Tax Act, premiums paid towards life insurance policies qualify for a deduction of Rs. 1.5 Lakhs per annum, irrespective of whether it is an individual plan or a family floater plan. Further, Section 10 (10D) states that the income on maturity of the policy is tax-free if the sum assured is more than 10 times the premium payable.

Once you select your preferred online insurance provider and the right life insurance plan, the next step would be to purchase the insurance policy. It is fairly easy to pay for insurance online. All you have to do is visit the site of the preferred insurance company, log in to the portal, furnish all of the aforementioned documents. Once the insurer verifies all these documents, the insurer will provide all the plans and the quotations pertaining to the plan. Once you select the plan that suits you best, you can pay using any online payment modes like net banking and you will be insured.

P.S- For the readers that are unsure about how much life insurance coverage would be adequate, we’d recommend you to get covered for at least 10 times your annual income. Ten years worth of income provides a moderate-sized cushion of safety for your dependants and can help take care of all their financial needs. Suppose an individual earns Rs. 7 Lakhs per annum. In that case, getting insured for 10 times the annual income i.e Rs. 70 Lakhs would be ideal. We also advise our readers to opt for pure term plans over plans with life cover bundled with investments as the entirety of the coverage is provided as death benefit at significantly lower premiums (upon the death of the insuree).

How to buy General Insurance Online-

Under General Insurance, we discuss how to buy insurance for car online, health insurance, and two wheeler insurance online.

Under Health Insurance, you mainly have individual and family floater insurance plans, critical illness cover, as well as personal accident cover.

In the case of insurance for car online, you have third-party car insurance, first-party car insurance as well as comprehensive car insurance, that provide cover for either the insuree’s vehicle, a vehicle owned by a third party, or both in the case of comprehensive insurance.

In the case of bike insurance, the plans offered are first-party insurance, third-party insurance, and comprehensive insurance. The First Party covers the insuree’s vehicle, the Third Party covers a third party individual’s vehicle and comprehensive policy provides coverage for both.

Eligibility for health insurance- Conventionally, an individual between the age of 18 years and 65 years is eligible for a health insurance policy. Individuals are required to be non-smokers and are expected to not have any pre-existing illnesses (to avail of a majority of the health insurance plans).

Eligibility for Motor Insurance- Conventionally, an individual between the age of 18 years and 65 years is eligible for a motor insurance policy, with the requirement of all government-approved documents and no modified vehicle. The vehicle needs to have been registered with the Regional Transport Authority in India.

Documentation for Health Insurance-

  • Identity Proof
  • Address Proof
  • Age Proof
  • Medical Reports (in some cases)
  • Passport Size Photographs


Documentation for Online Insurance Bike and Car-

  • Identity Proof
  • Address Proof
  • Age Proof
  • Driving License, RC Card, Engine & Chassis Number, previous insurance details (in some cases).
  • Passport Size Photographs


Tax Benefits on Health Insurance (as per Sec 80D)-

Description Premium Paid (Rs.) Total Deductions under Sec 80D (Rs.)
Self/Spouse/DependantsParents
Age bracket below 60 years.25,00025,00050,000
Individual/Spouse/Child is below 60 years and parents are above 60 years.25,00050,00075,000
Assessee and parents are above 60 years50,00050,000100,000


Once you select your preferred insurer and the right general insurance policy, you can log in to the website of the insurance company of your choice and furnish all the documents as mentioned above after registering with them. Once the documents are verified, the insurer offers different plans and different premium quotations. Once you select the best-suited plan for yourself, you can go ahead with it after making a payment.

Online Insurance Renewal

Insurance renewals are absolutely hassle-free nowadays, with a completely online procedure requiring just your previous insurance policy details and minimal paperwork. Online payments for renewals are facilitated too, through all major debit/credit cards, net banking, and even UPI.

North Loop offers comprehensive insurance plans for Indians as well as NRIs, providing high covers for low premiums, 100% online policies with completely online sign-up and approval procedures. Click here to know more

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.