HUDCO Housing Urban Development Corporation (HUDCO) plays a major role in implementation of National Housing Policy. HUDCO's mandate is to meet the needs of the low income group (LIG) and economically weaker sections (EWS).

It’s operations cover the entire country. HUDCO offers loans to the primary house building Cooperative Societies, State level Housing Finance Societies and the Housing Boards for undertaking housing projects for members of Cooperative Societies according to norms available of Urban Housing Schemes.

HUDCO is financially aided by the World Bank, USAID, and ADB etc. to improve housing stock in India. Its Niwas scheme is a housing finance instrument for individual families which offers loan assistance to individuals constructing or buying a house or a flat. Similar loan assistance is also extended to extend or improve an existing house or flat.

HUDCO Niwas Home Loans Scheme offers individual housing loan for:

• Construction of a House;
• Purchase of House or Flat;
• Purchase of a plot from public agencies/Co-op. societies of Government employees/ reputed developers;
• Extend or improve the exiting House or Flat;
• Registration of existing house including conversion from leasehold to free hold;
• Refinancing of existing housing loan from other financial institutions/banks;
• Loan to Professionals for non-residential premises;
• Loan against residential property.

ATTRACTIVE FEATURES/VALUE ADDED BENEFITS:

1. Most competitive interest rate
2. No processing fee.
3. No charge on account of repayment/prepayment of loan.
4. Facility or resetting of existing loan from fixed loan from fixed to floating & vice-versa on nominal charges.
5. Free personal accidental insurance cover to borrowers. (Death only)
6. Waiver of last two EMIs for loan above 5 years under fixed rate. (Provided all other installments are received as per schedule without delay)
7. Transparency & No hidden cost.

Eligibility FOR LOAN:

1. An applicant must be in service or engaged in any profession or business with regular income for servicing the loan.
2. The loan amount will be up to 85% of the cost of the housing unit including incidental cost like stamp duty and registration. The maximum loan amount will be Rs. One Crore.
3. The actual loan amount will be determined on the bases of repayment capacity. Repayment capacity takes into account such as income, age, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history with details of bank accounts.

Rate of Interest:

Fixed Rate of Interest *
Purpose of loan	Interest Rate (Monthly rest basis) Up to Rs.10 lacs	Interest Rate (Monthly rest basis) Over Rs.10 lacs
Construction/purchases/composite Loan	10.50%	10.50%
Purchase of plot	10.00%	10.50%
Extension/Improvement	10.00%	10.50%
Registration of existing house	10.00%	10.50%
Refinance	10.00%	10.50%
Loan to professional for Non-residential premises	11.50%	11.50%
Loan against residential property	11.00%	11.50%
* (Applicable w.e.f 01/03/2007) (Fixed interest rates will be automatically reset after every 5 years)

Floating Rate of Interest *
Purpose of loan	Interest Rate (Monthly rest basis) Up to Rs.10 lacs	Interest Rate (Monthly rest basis) Over Rs.10 lacs
Construction/purchases/composite Loan	9.00%	9.50%
Purchase of plot	9.00%	9.50%
Extension/Improvement	9.00%	9.50%
Registration of existing house	9.00%	9.50%
Refinance	9.00%	9.50%
Loan to professional for Non-residential premises	10.50%	11.00%
Loan against residential property	10.50%	11.00%
* (Applicable w.e.f 01/06/2006) Floating rate of interest shall be adjusted every six months i.e. on 1st April which will be effective from 1st April which will be effective from 1st April to 30th September and on 1st October which will be effective from 1st October to 31st march respectively.

Loan Amount:

The maximum loan amount will be Rs. one crore. The maximum loan amount will not exceed 85 per cent of the total cost of the housing unit, including incidental costs like stamp duty and registration.

Also, the actual sanction of the loan depends on the repayment capacity of the borrower where income, age, qualifications, number of dependents, income of the Spouse, asset and liability of the persons, continuity of occupation and saving history are factored in while arriving at the repayment capacity.

Loan Repayment Period:

Loan repayment period is up to 25 years. The period will not extend beyond the age of 65 years (relaxable by 5 years on the merits of each case) of the applicant. However, HUDCO Niwas Home Loan can also determine the repayment period to suit the convenience of the applicant.

For loan to professional for non-residential premises and loan against residential property, repayment is permitted up to a maximum period of 10 years subject to the age of the applicant not exceeding 65 years and repayment capacity.

Processing fees:

A processing fee (non-refundable) of 0.5% of the loan amount applied for is payable, subject to a minimum of Rs 250, at the time of submission of the application form to HUDCO Niwas.

On acceptance, a one-time administrative fee of 1 percent of the loan amount sanctioned is payable. In case the applicant is handicapped or a widow, the processing fees will be 0.4 per cent of the loan amount applied for, and the administrative fee will be 0.8 per cent of the loan amount sanctioned.

LIST OF DOCUMENTS TO BE SUBMITTED ALONG WITH APPLICATION FORM

1. Latest pay slip(s)/certificate(s) showing all the allowances, deductions and details of outstanding loan (if any), in respect of the applicant/co-applicant(s).
2. Short note on the nature of business, form of organization (in self-employed cases only).
3. Copies of profit and loss account and balance sheet for the last three years in respect firm’s business/profession (only in self-employed cased certified by a chartered accountant)
4. Statement showing computation of individual taxable income and tax returns for the last three years (only in self-employed cases).
5. Copy of the pension certificate in case of retired applicants.
6. Copy of the rent/lease agreement with supporting bank statements and/or Income Tax return if any additional income is accruing.
7. Letter from employer mentioning that they will deduct the monthly installment payable to HUDCO from the salary and remit the same to HUDCO every month.
8. Photocopy of the registered sale dead/lease deed/allotment letter/share Certificate of the co-operative society, agreement for sale as executed on applicable stamp paper.
9. Copy of the house plan, approved by the local competent authority (only in construction cases)
10. Detailed cost estimate for the proposed construction prepared b a civil Engineer/Registered Architect (in case of construction / extension / improvement) or a letter from the society, in case the house is of a co-operative society.
11. Photocopy of the house building advance (HBA) sanction letter (if HBA has been taken from the employer) including the loan amount and the repayment terms.
12. Bank account statement indicating transactions for the last six months or a photocopy of your bank passbook (duly pdated)
13. Particulars of Guarantor of comparable age and income (if required)
14. Age proof and proof of residence (for applicant and co-applicant).

For more information visit: http://www.hudco.org