IRDAI's decision regarding loan on insurance policy, ban on payment from credit card

Insurance regulator IRDAI has prohibited repayment of loans against mortgage of insurance policy by credit card. After this, if someone has taken a loan on an insurance policy, then he will not be able to pay it with a credit card.
A circular has also been issued by the Insurance Regulatory Development Authority of India (IRDAI), in which the repayment of loans taken against all types of life insurance with credit cards has been banned. Is. This order has been implemented with immediate effect.
On repaying the loan through a credit card, the customer gets one month's interest-free loan, but if he defaults on paying the credit card bill on time, he has to pay a very high interest and he gets caught in the debt trap.
In such a situation, this decision of IRDAI will eliminate the possibility of getting trapped in the debt trap due to loan repayment from credit cards and protect the interests of the customers.
In August last year, a similar decision has also been taken by the Pension Fund Regulatory and Development Authority (PFRDA). Contribution through credit cards in Tier-2 of the National Pension Fund (NPS) was banned by PFRDA.
A loan facility is available on all types of life insurance policies. You can avail of a loan of up to 90% of the insurance policy's surrender value. A loan against insurance policy is given faster by the bank than a personal loan and the interest rate on it is also very low.