If you’re looking to buy a plot and construct your dream home, the Composite Loan Scheme from LIC Housing Finance Ltd offers a convenient all-in-one financing solution. Designed to cover both the land purchase and construction costs under a single loan, this scheme simplifies the borrowing process and reduces the hassle of managing multiple loans. The loan tenure can extend up to 30 years, depending on your age and employment type, with competitive interest rates starting around 7.35%–8.65% p.a., based on your credit score and employment category.
Under this scheme, the loan amount is typically split—up to 60% is allocated for purchasing the plot and the remaining 40% goes toward construction. A key condition is that you must complete the house construction within 3 years from the date of plot purchase. The interest rates are linked to your CIBIL score; for instance, borrowers with a score of 825 or above can access rates as low as 7.15% p.a., making it more affordable for those with a strong credit profile. The loan is available for a maximum tenure of 30 years, giving you flexibility in repayment.
The loan is open to salaried employees, self-employed professionals, and business owners, with a minimum stable monthly income typically required (around ₹15,000+ per month). The key documents you’ll need include:
– KYC: PAN, Aadhaar, Voter ID (or similar address proof)
– Income Proof: For salaried—latest salary slips, Form 16, and bank statements. For self-employed—ITR for 3 years, audited financials, and bank statements.
– Property Documents: Plot approval layout, sale agreement, and approved building cost estimates.
You can apply online via the LIC HFL website or visit your nearest LIC HFL branch office in Kerala to submit your property blueprints and income papers. The company also has a strong presence in the state, with branches in locations like Punalur, Kozhenchery, and Mavelikkara. This loan is especially beneficial for those looking for a one-stop financing solution to turn their land into a home without juggling multiple lenders.
