LIC Housing Finance Plot & Land Loans

LIC Housing Finance provides specialised plot loans for individuals aiming to buy land for residential construction. Understanding the nuances of these loans is crucial for prospective landowners. This guide delves into all key aspects of LIC Housing Finance's plot loans, offering insights into the basic features, competitive interest rates, and other financial specifics.

By understanding these elements, prospective borrowers can efficiently navigate the process of acquiring a plot loan from LIC Housing Finance, ensuring they meet all requirements to achieve their property ownership goals.

What is a LIC Housing Finance Plot Loan?

A plot loan from LIC Housing Finance is designed for the purchase of a residential plot where the borrower plans to build a house. These loans are specifically for the acquisition of vacant land, and they come with different terms and conditions compared to standard home loans.

Snapshot Overview of LIC Housing Finance Plot Loans:

LIC Housing Finance Plot Loan Interest Rates

The interest rates for LIC Housing Finance plot loans are competitive and vary based on several factors including the borrower’s creditworthiness and the specifics of the loan being sought. Below is a typical range you might expect:

Fees and Charges

Eligibility Criteria for LIC Housing Finance Plot Loans

For Salaried Individuals:

• Age: 21 to 60 years
• Employment: Must have been continuously employed for the past 2 years
• Income: Minimum salary requirements vary by city and total loan amount

For Self-Employed Individuals:

• Age: 21 to 70 years
• Business Stability: Business should be operational for at least 3 years
• Income: Must have a steady income, proven by the last 3 years of income tax returns and profit/loss statements

Required Documentation for LIC Housing Finance Plot Loans

For Salaried

• Identity Proof: PAN Card, Aadhar Card, Voter ID, etc.
• Address Proof: Utility bills, Passport, etc.
• Income Proof: Last 3 months’ salary slips, 6 months’ bank statements, latest Form-16 and IT returns
• Property Documents: Allotment letter, buyer agreement, or sale deed

For Self-Employed

• Identity and Address Proof: Same as above
• Business Proof: Business registration certificate
• Income Proof: Last 3 years’ income tax returns, balance sheet, and P&L account; bank statements for the last 6 months
• Property Documents: Same as above

Features of LIC Housing Finance Plot Loans

• Flexible Repayment Options: Borrowers can choose from a variety of repayment plans, including step-up, step-down, and balloon payments.
• Balance Transfer Facility: Allows borrowers to transfer their existing loans from other banks to LIC Housing Finance at lower interest rates.
• Customisable Loan Amounts: Depending on the borrower’s eligibility, loan amounts can be adjusted to meet individual financial needs.

Things to Remember While Applying for a LIC Housing Finance Plot Loan

1. Credit Score: A good credit score is crucial for favourable interest rates.
2. Loan to Value Ratio: LIC normally contributes up to 75% of the plot cost; the borrower is responsible for financing the remaining 25%.
3. Property Approval: The plot should be within municipal or corporation limits and should comply with local laws and regulations.
4. Additional Costs: Be aware of additional costs such as stamp duty, registration charges, and legal fees.
5. Insurance: Consider purchasing insurance for the loan amount as a safety measure.