Plot Loan
Buy a residential plot from a development authority or approved layout — or combine plot + construction.
- Rates from
- 7.15%*
- Funding
- Up to 90%
- Salaried
- Up to 30 yrs
- Self-employed
- Up to 20 yrs
Quick answer: An LIC HFL home construction loan funds building a house on a plot you own, from 7.15% (CIBIL 825+). LIC HFL funds up to 90% of the cost for loans up to ₹30 lakh (80% up to ₹75 lakh, 75% above), over up to 30 years (salaried) or 20 years (self-employed). The money is released in stages as construction progresses.
By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002. Terms checked on lichousing.com on 13 October 2026.
An LIC HFL Home Construction Loan finances building a house on a plot you already own. The loan is typically released in stages as construction progresses.
Salaried, self-employed, professional and NRI borrowers can apply.
Who can apply
- Plot owners ready to build
- Salaried, self-employed, professional and NRI borrowers
- New and existing LIC HFL customers
Key features
- Up to 90% of property value for loans up to ₹30 lakh
- Up to 80% for loans of ₹30–75 lakh
- Up to 75% for loans above ₹75 lakh
- Repayment up to 30 years for salaried and 20 years for self-employed applicants (subject to age and repaying capacity)
- Online sanction facility and simple documentation
Documents to keep ready
- Plot title documents and approved building plan
- Construction estimate from an engineer / architect
- KYC and income documents
What is the LIC HFL construction loan interest rate?
Construction loans follow LIC HFL’s home loan rate card, by CIBIL score (salaried, loans up to ₹1 crore):
| CIBIL score | Rate |
|---|---|
| 825 and above | 7.15% |
| 800–824 | 7.35% |
| 775–799 | 7.50% |
| 750–774 | 7.60% |
| 725–749 | 7.80% |
| 700–724 | 8.10% |
Self-employed borrowers pay 0.15%–0.25% more. Details: LIC HFL home loan rates, October 2026.
How is a construction loan released?
Not in one go. LIC HFL pays out in instalments as the building reaches each stage, after its technical team inspects the site (full guide: construction loan stages and the estimate you need). A typical sequence:
- Foundation and plinth
- Walls and roof slab, floor by floor
- Plastering, flooring, doors and windows
- Finishing and completion
Until the full loan is disbursed you usually pay interest only on the amount released (pre-EMI), then full EMIs begin. Plan your own contribution so that work does not stop between instalments.
Construction loan EMI at 7.15%
| Loan | Term | EMI |
|---|---|---|
| ₹30 lakh | 20 years | ₹23,530 |
| ₹40 lakh | 20 years | ₹31,373 |
| ₹50 lakh | 25 years | ₹35,819 |
Our calculation, at the CIBIL 825+ salaried rate. Try your own numbers in the EMI calculator.
Construction loan or composite loan?
| Your situation | Loan to choose |
|---|---|
| You already own the plot | Home construction loan (this page) |
| You are buying the plot and will build within 3 years | Composite plot + construction loan, up to 30 years: see composite loan in Hyderabad |
| You are adding a floor or rooms to an existing house | Home extension loan |
| You are repairing or upgrading your home | Home renovation loan |
What you need before you apply in Hyderabad
- Clear title documents of the plot in your name, and an approved layout (HMDA/DTCP, or regularised under LRS); see HMDA vs DTCP plots
- Building permission and sanctioned plan from the local authority (in Telangana, usually through TG-bPASS, GHMC or the municipality)
- A construction estimate from an engineer or architect; it decides how much LIC HFL funds
- KYC and income documents for all applicants. Full list: property documents for a home loan in Telangana
Tax benefit on a construction loan
Under the old tax regime, interest paid while the house is being built can be claimed in five equal instalments from the year construction is completed, within the overall ₹2 lakh-a-year limit for a self-occupied home; the house should be completed within five years for the full limit. See home loan tax benefits.
Source: lichousing.com home loan and home construction loan pages (rates by CIBIL score, funding limits, term), checked 13 October 2026. EMI figures are our calculations.
How Hyderabad Home Loans helps
- We check your eligibility and confirm whether this scheme is the best fit before you apply.
- We review your documents before they go to LIC HFL, so there are fewer queries later.
- We track your file with LIC HFL through sanction and disbursement.
*Starting rate for eligible borrowers, as published by LIC HFL (updated September 2026). Your rate depends on CIBIL score, loan amount, profile and LIC HFL credit policy — we confirm it before you apply.
Frequently asked questions
Usually in stages linked to construction progress, after LIC HFL’s technical team inspects the site.
Yes. Keep your sanctioned building plan and a construction estimate ready — they decide how much you can borrow.
Look at the Composite Plot + Construction loan under our Plot Loan page — one loan for both, up to 30 years.
Helpful guides
Compare
All LIC HFL loan products Other loans to consider
Home Extension Loan
Add a floor or extra rooms to your existing home.
Home Renovation Loan
Repairs and improvements to the home you already own.
Hyderabad Home Loans (Elite Financial Services) is an authorised Direct Selling Agent of LIC Housing Finance Ltd. Product names, features and rates are as published by LIC HFL; sanction, rate and terms are at LIC HFL’s sole discretion. Final eligibility is subject to lender assessment.