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LIC Housing Finance plot loan is a comprehensive financing solution designed for individuals seeking to purchase a residential plot. With interest rates starting at 8.70% p.a., financing of up to 75% of the property value, and repayment tenures extending up to 30 years, this loan ensures flexibility and affordability.
Land today, home tomorrow! LIC Housing Finance Plot Loans make it happen.
LIC Housing Finance Plot Loan Highlights
LIC Housing Finance plot loan offers flexible terms, competitive interest rates, and high loan amounts, making it an ideal choice for aspiring homeowners.
| Aspect | Highlight |
|---|---|
| Interest Rates | Salaried: 8.70% p.a. onwards Self Employed: 8.95% p.a. onwards |
| Tenure | Residential Plot Loan: 15 years Composite Loan (Plot+Construction): 30 years |
| Maximum Loan Amount | 75% of the Property Value |
Suggested Read: Plot Loan vs. Home Loans
LIC Housing Finance Plot Loan Interest Rates 2025
LIC Housing Finance (LIC HFL) offers plot loans at interest rates starting from 8.70% p.a. These rates vary based on factors such as CIBIL score, loan amount, occupation profile, and the specific home loan scheme you choose.
| CIBIL Score Range | Salaried | Self-Employed |
|---|---|---|
| ≥ 800 | 8.70% p.a. – 8.95% p.a. | 8.95% p.a. – 9.20% p.a. |
| 775 – 799 | 8.80% p.a. – 8.95% p.a. | 9.05% p.a. – 9.20% p.a. |
| 750 – 774 | 8.85% p.a. – 9.00% p.a. | 9.10% p.a. – 9.25% p.a. |
| 725 – 749 | 9.00% p.a. – 9.15% p.a. | 9.25% p.a. – 9.40% p.a. |
| 700 – 724 | 9.10% p.a. – 9.25% p.a. | 9.35% p.a. – 9.50% p.a. |
| 600 – 699 | 9.75% p.a. – 10.10% p.a. | 9.85% p.a. – 10.20% p.a. |
| 150 – 200 | 8.75% p.a. onwards | 9.05% p.a. onwards |
| 100 – 150 | 9.45% p.a. onwards | 9.55% p.a. onwards |
LIC Housing Finance Home Loan Types
LICs plot loan schemes are thoughtfully designed to meet your unique needs, offering flexible terms and competitive rates.
Residential Plot Loan
- Purpose: Purchase of residential plots from government bodies, development authorities, or approved layouts.
- Maximum Loan Amount: Up to 75% of the property value.
- Maximum Tenure: 15 years.
Composite Loan
- Purpose: Purchase of a plot and construction of a house, with the construction process to be completed within 3 years.
- Maximum Loan Amount: Subject to individual eligibility criteria.
- Maximum Tenure: 30 years.
Suggested Read: How to Apply for LIC Housing Finance Loan?
LIC Housing Finance Plot Loan Eligibility Criteria
Before applying for a home loan, it’s essential to understand the eligibility criteria. Here’s the essential eligibility checklist set by LIC:
| Aspect | Requirements |
|---|---|
| Applicant Type | Resident Indians Non-Resident Indians (NRIs) |
| Employment Status | Salaried individuals: public, private, or government organizations Self-employed professionals and non-professionals |
| Age Limit | Minimum: 21 years Maximum: 65 years |
| Work Experience | At least 2 years for salaried individuals Business establishment of at least 2 years for self-employed individuals |
| Credit Score | A CIBIL score above 600 is mandatory |
| Property Type | Purchase of residential plots from government bodies, development authorities, or approved layouts |
Suggested Read: LIC Housing Finance Statement Download
LIC Housing Fiance Plot Loan Documents Required
When applying for a home loan with the LIC, you will need to provide specific documents that verify your identity, income, and property details. Below is a detailed list:
General Documents
| Category | Documents Required |
|---|---|
| Proof of Identity | PAN Card/ Driver’s License / Voter ID / Passport / Aadhar Card |
| Proof of Address | Driver’s License / Ration Card / Voter ID / Passport / Aadhar Card / Registered Rent Agreement |
Proof of Income
| Salaried | Self Employed |
|---|---|
| Last 6 months’ Salary Slips | Last 3 Years ITR with Computation of Income |
| 1 Year ITR/Form 16 | Profit & Loss Account |
| 6 months bank account statement (salary account or individual account). | Balance Sheet |
| Capital Account Statement | |
| Bank account statement for the last 12 months (for individual or business). | |
| Business proof |
NRI
| Category | Documents |
|---|---|
| Passport & Visa | Passport with VISA printed on it |
| Work Authorization | Work Permit |
| Identity Proof | Copy of PAN, ID card issued by employer |
| Proof of Address | Proof of address in India Proof of address in the foreign country Proof of address from employer with contact details |
| Income Proof | Latest salary slip in original Annual income tax return filed as per applicable rules for the last 2 years |
Suggested Read: Can You Build a House on Agricultural Land?
LIC Housing Finance Plot Loan EMI Calculator
Benefits of LIC Housing Finance Plot Loan
- Online Loan Sanction – Convenient digital process for quick approval.
- Fast Processing & Affordable EMIs – Quick loan sanction with budget-friendly repayment options.
- Simple Documentation – Hassle-free paperwork for a smooth application experience.
- Competitive Interest Rates – Avail one of the lowest interest rates in the market.
- Balance Transfer Facility – Option to transfer existing home loans for better terms and savings.
Suggested Read: LIC Housing Finance Customer Care
LIC Housing Finance Plot Loan Tax Benefits
Tax benefits on plot loans depend on your intent:
- No tax benefits if the plot is purchased purely as an investment with no plans to build.
- Tax benefits apply only if you construct a residential property (e.g., house, villa) on the plot. Benefits cover both the plot loan and subsequent home loan for construction.
Key Tax Deductions
| Section | Deduction Type | Maximum Deduction | Key Details |
|---|---|---|---|
| 80C | Principal Repayment | Up to ₹1.5 lakh/year | – Includes stamp duty & registration fees if paid in the year construction is completed. – Joint Ownership: Both owners can claim, but combined total cannot exceed ₹1.5 lakh. |
| 24 | Interest Repayment | – Up to ₹2 lakh/year (self-occupied) – No upper limit (rented) | – Deduction applies after construction completion. – Pre-construction interest: Claimed over 5 years once construction starts. |
Conditions to Claim the Tax Benefits
- Construction timeline: You must complete construction within 5 years of taking the loan. Failure reduces the Section 24 deduction to ₹30,000/year.
- Loan conversion: Convert the plot loan to a home loan after construction by submitting a completion certificate and occupation certificate to the lender.
New Tax Regime (2025 Update)
The new tax regime (optional from FY 2025-26) does not allow deductions under Sections 80C or 24 for plot loans. Stick to the old regime to maximize benefits.
Suggested Read: Impact of Union Budget 2025 on Home Buyers
Conclusion
Choosing the right loan for your land purchase is crucial. The LIC Housing Finance plot loan provides a reliable option with competitive interest rates and flexible terms. With straightforward eligibility criteria and a transparent process, the Axis Bank Plot Loan makes owning a plot simpler and more accessible.
Ready to explore your options? At Credit Dharma, we can help you find the best loan for your land purchase. Our experts will guide you through the process, ensuring you make informed decisions that align with your financial goals.
Frequently Asked Questions
No, LIC Housing Finance offers a maximum loan of up to 75% of the property’s value for residential plot purchases. This is commonly referred to as the Loan-to-Value (LTV) ratio.
Interest rates for LIC Housing Finance Plot Loans start from 8.70% per annum. The exact rate may vary based on factors such as the applicant’s credit score, loan amount, and employment type.
A plot loan, such as the one offered by LIC Housing Finance, is specifically designed for purchasing residential land. It provides financing for the land acquisition, with terms and conditions tailored for this purpose.
Tax benefits on plot loans are applicable only if the construction of a house on the purchased plot is completed within the stipulated time frame. Interest and principal repayments may then qualify for deductions under Sections 24(b) and 80C of the Income Tax Act, respectively.
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