Growing concern over the combustion cost and environment has made road engineers and scientists to explore the possible use of locally available materials for the construction of roads. The present study evaluated the strength and durability characteristics of five sites having locally available silty soils using lime and cement–sand stabilization technique. The test results showed that the cement–sand stabilization technique using 6% cement and 5% local sand resulted in higher strength and durability as compared to lime stabilization. There is also a significant increase in the value of the soaked California bearing ratio (CBR). As unconfined compressive strength (UCS) attained the threshold strength as prescribed by IRC SP 72 2015 for the granular sub-base (GSB) layer, by the use of sand cement stabilization, this technique of stabilization for local silty soils could be used for GSB for low volume road (LVR) construction. As observed from microstructural results which were performed by analysing SEM images, sand cement stabilisation leads to CSH gel and agglomerate formation thereby increasing strength and durability properties. The cost analysis for the replaced stabilized GSB layer showed that using sand–cement stabilization, the estimated cost can be reduced by 56% of the total cost as compared to the conventional method.