A "low interest" loan shouldn't mean you have very little interest in paying it back!
The housing finance strand of the Life Insurance Corporation of India (LIC) offers loans which are specially designed for developers and builders. Under this scheme, the LIC Housing Finance Limited (HFL) offers Construction Finance Loans and Term Loans. The home loans offered by LIC HFL can be availed at rates of interest starting at 6.90% p.a. The Construction Finance Loans can be availed for a period of up to 5 years. The Term Loans, on the other hand, can be availed for a maximum of 3 years.
The rates of interest for the LIC HFL home loans are applicable based on the loan amount and the CIBIL score of the applicant. Currently, the interest rates start at 6.90% p.a. and can go up to 10.50% p.a.
| Quantum of Loan | Rate of Interest |
| Up to Rs.50 lakh | 6.90% p.a. to 7.85% p.a. |
| More than Rs.50 lakh up to Rs.1 crore | 6.90% p.a. to 8.05% p.a. |
| More than Rs.1 crore up to Rs.3 crore | 6.90% p.a. to 8.05% p.a. |
The features and benefits of the LIC Housing Finance for Builders and Developers can be listed as follows:
The eligibility criteria for the LIC Housing Finance for Builders and Developers primarily require the applicant to be in a stable business which offers a regular source of income. The other criteria which might be applicable for the loans for builders and developers are subject to the requirement of LIC HFL. You can get in touch with the loan provider for further details.
The documents required to apply for a home loan through LIC Housing Finance Limited are listed below:
Note: The list of documents mentioned above are applicable to all loan applicants and are indicative. You might be required to provide other documents as per the requirement of the loan provider.
The Construction Finance Loans are provided for the purpose of construction and development of residential as well as commercial properties. These loans can be availed for a period of up to 5 years.
The Construction Finance Loans are provided for the purpose of the business of developers and builders. These loans can be availed for a period of up to 3 years.
No, LIC Housing Finance Limited does not offer loans for the purchase of consumer durables.
The maximum loan amount which can be availed through the LIC Housing Finance for Builders and Developers will be at the discretion of the loan provider.
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