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LIC has put in place a hassle-free process to pay the interest online. All you have to do is go to the LIC India website and follow the instructions given after clicking ‘Pay direct’ or ‘Pay through the customer portal’ on the home page.
Interest-on-interest is also referred to as compound interest. It is the interest earned when interest payments are reinvested. The golden rule to remember here is that interest on interest is good for investments and savings. However, it’s bad for loans.
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