648. How is a policy loan different from a commercial loan?

There is no legal obligation to repay a policy loan
In case of policy loan, there is no need for a credit check
Both A & B
None of the three
✅ The correct answer is C.
The main advantage of a policy loan over other loans is that there is no credit check; the interest rate is usually much lower; the policyholder can pay back the loan according to virtually any repayment schedule; and, in fact, the policyholder is not even legally obligated to pay back the loan.

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