Whole life and endowment policies include a privilege clause undertaking to grant a loan up to 90 per cent or 95 per cent of the surrender value. The rate of interest is determined at the time of the loan. Repayment can be made at any time or when the policy matures. Meanwhile interest and premiums are payable. An alternative way of securing a loan on a life policy is to use it as collateral security when borrowing from a bank.