Quick answer: A builder in Hyderabad can get two things from LIC HFL. APF approval: LIC HFL checks your project once, so every buyer’s home loan moves faster. Project finance: a construction or term loan for the builder, released in stages and repaid through an escrow account. As an authorised LIC HFL DSA since 2002, we prepare and follow up both files for you.
By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Scheme details checked on lichousing.com (Builder & Developer Scheme) on 30 October 2026.
Two things LIC HFL can do for your project
| APF approval (project approval) | Project finance (Builder & Developer Scheme) | |
|---|---|---|
| Who benefits | Your buyers, and your sales | You, the builder or developer |
| What LIC HFL does | Checks the project’s title, approvals, plans and RERA registration in advance | Lends for constructing residential or commercial premises (construction finance), or for business purposes (term loan) |
| What you get | Buyers’ home loans are processed faster, with a special processing fee discount and no legal and technical fee for them | Construction finance for 6 months to 5 years, or a term loan for 6 months to 3 years |
| How money moves | Buyers’ loans are disbursed to the project as construction progresses | Released in instalments as work progresses; repaid through an escrow account |
You can apply for either one, or both. Approval helps you sell; finance helps you build.
Why APF approval helps you sell more flats
- Faster loans for buyers. LIC HFL has already checked the project, so only the buyer’s own eligibility and documents remain. In our experience, a complete file from a salaried buyer in an approved project is usually sanctioned in 4–7 working days.
- Lower costs for buyers. Home loans in LIC HFL approved projects get a special processing fee discount and no legal and technical fee.
- Trust. Buyers read approval as a sign that a large lender has checked the paperwork. Many ask for “LIC HFL approved projects” by name, and we list approved projects on our approved projects page.
- Fewer lost bookings. When a buyer’s loan is slow, the booking is at risk. Approval removes the biggest delay: verifying your project file again for every buyer.
Why buyers trust approved projects, in their words: what LIC HFL approval (APF) means for a buyer.
What LIC HFL checks before approving a project
- Title: the chain of title documents for the land and the encumbrance certificate, plus the development agreement and GPA if it is a joint development.
- Approvals: the building permission or layout approval (GHMC, HMDA or BuildNow), the sanctioned plans and any NOCs the project needs, such as fire or airport height clearance for tall buildings.
- RERA: the project’s Telangana RERA registration.
- The builder: the company or firm’s documents, its promoters and its track record.
Documents to keep ready
A typical list; LIC HFL may ask for more depending on the project:
| Category | Documents |
|---|---|
| Land and title | Sale deeds and link documents, encumbrance certificate, development agreement and GPA (for joint development) |
| Approvals | Building permission or layout approval, sanctioned plans, NOCs that apply to the project |
| RERA | Telangana RERA registration certificate |
| Builder | Incorporation or partnership documents, PAN, GST registration, KYC of promoters or partners, board resolution (for a company) |
| Project | Brochure, price list, unit list, construction status and schedule |
Most delays come from small gaps: a missing link document, a plan that doesn’t match the permit, or a NOC that has expired. We check the file before it goes to LIC HFL. If your project is under an HMDA or GHMC mortgage for part of the built-up area, plan the release: see HMDA and GHMC mortgaged flats.
Project finance from LIC HFL: the basics
LIC HFL’s Builder & Developer Scheme has two loans:
- Construction Finance Loan: for developing and constructing residential or commercial premises, for 6 months to 5 years. Security is a mortgage of the land and the building on it, with personal guarantees of the partners or promoters, and a corporate guarantee if required. It is released in instalments depending on the progress of work, the funding need and the security cover.
- Term Loan: for business purposes, for 6 months to 3 years, against security acceptable to LIC HFL, with receivables from ongoing projects assigned to LIC HFL and personal guarantees of the promoters. It is released in one go or in instalments, as agreed.
Both are repaid through an escrow account. For the step-by-step process, and how RERA’s 70% account rule fits in, see construction finance for builders.
Plotted layouts and villa projects too
Approval is not only for apartments. Our approved projects list includes an open-plot venture (Auroland, Patancheru) and a villa project (Sansa County, Patancheru), so buyers there can use LIC HFL plot loans and home loans.
Why builders work with us
- Authorised LIC HFL DSA since 2002 (Teja Management Group, Elite Associates and Elite Financial Services are one family business), with more than ₹2,500 crore of LIC HFL loans disbursed through us
- We have financed buyers in projects such as NSL Nakshatra, Pavani Felicity, Radhey Skye and Ameya Villas by Tattva Developers, and for builders such as Honer Homes, Praneeth Builders and APR Builders
- Recognised by LIC HFL (Certificate of Appreciation FY 2023–24, Pride & Elite member 2025–26) and at a NAREDCO West Zone builders’ event; see About us
- After approval, we handle your buyers’ home loans: eligibility, documents and follow-up until disbursement
More on the service: APF approval in Hyderabad. Builders and agents can also partner with us.
Frequently asked questions
Is LIC HFL’s APF approval the same as a bank’s approval?
No. Each lender checks and approves projects on its own. A project approved by LIC HFL may or may not be approved by a bank, and the other way round.
Can a project be approved before RERA registration?
Plan for RERA registration first. RERA does not allow a project to be advertised or sold before it is registered, and LIC HFL checks the registration when it appraises the project; see how a RERA registration is checked.
Does LIC HFL give project loans for commercial buildings?
Yes. LIC HFL’s Construction Finance Loan covers developing and constructing residential or commercial premises.
How is a project loan repaid?
Through an escrow account, from the project’s sales receipts, over the agreed term: 6 months to 5 years for construction finance, and 6 months to 3 years for a term loan.
Do I need project finance from LIC HFL to get APF approval?
No. They are separate. Some builders take APF approval only, so that their buyers get faster LIC HFL home loans; others also take a construction loan.
Sources: lichousing.com, Builder & Developer Scheme (Construction Finance Loan and Term Loan), checked 30 October 2026; Real Estate (Regulation and Development) Act, 2016, Sections 3 and 4; our approved projects list.
Hyderabad Home Loans is run by Elite Financial Services, an authorised Direct Selling Agent (DSA) of LIC Housing Finance Ltd. We are not LIC HFL. Loans are sanctioned solely at LIC HFL’s discretion; rates and fees may change.
Related guides
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RERA Escrow Account and the 70% Rule in Telangana: What Home Buyers and Builders Should Know (2026)