Yes, you can avail a loan against your LIC policy provided you have paid premiums for 3 years. However, keep the following things in mind before applying for the loan:

1. You can avail the loan only after 3 years of the commencement of the policy. Why? read point number 2.
2. The amount of loan is calculated on surrender value. So, unless 3 years haven't been passed, you can't surrender your policy hence you can't avail the loan too.
3. You can avail the loan of 90% of the surrender value of the policy while applying. In case of paid up policies, the same will be 85%.
4. You can pay the interest on loan half yearly.
5. By giving a notice of 3 months, lic can call to repay the loan and interest. In case of default, lic can shut out your policy and use the proceeds to settle the loan amount.