What is HUDCO?

HUDCO, officially known as the Housing and Urban Development Corporation Limited, is a government-owned organization in India. Established in 1970 under the Ministry of Housing and Urban Affairs, HUDCO’s primary mission is to provide long-term financial support for the construction of housing and urban infrastructure projects across the country.

Here are some key aspects of HUDCO:

1. Financial Services: HUDCO offers loans and financial assistance for housing and urban infrastructure developments, particularly targeting economically disadvantaged sections of society.
2. Development Initiatives: The corporation supports various developmental efforts such as slum redevelopment, rehabilitation programs for vulnerable groups, and funding for essential urban infrastructure like water supply and roads.
3. Government Alignment: As a government entity, HUDCO aligns closely with national policies and initiatives related to urban development. It collaborates with state governments, local authorities, and other stakeholders to implement these initiatives effectively.
4. Public Offering: HUDCO has also conducted public offerings, including an Initial Public Offering (IPO), to broaden its investor base and raise funds for expanding its activities and projects.
5. Financial Performance: Over the years, HUDCO has demonstrated robust financial performance, driven by its pivotal role in financing critical urban infrastructure and affordable housing projects throughout India.

In summary, HUDCO plays a vital role in fostering the development of affordable housing and urban infrastructure, thereby contributing significantly to the overall improvement of living standards in urban areas across India.

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HUDCO Objective:

HUDCO, the Housing and Urban Development Corporation Limited, has several core objectives. These include providing long-term financing for residential construction, supporting housing and urban development initiatives, and aiding in the establishment of new or satellite towns. The corporation also participates in financing endeavors through the subscription of debentures and bonds issued by State Housing Boards, Improvement Trusts, and Development Authorities. Additionally, HUDCO funds industrial enterprises involved in building materials.

HUDCO administers funds received from the Government of India and other sources, directing them towards housing and urban development programs. It promotes, establishes, and offers consultancy services for projects encompassing the design and planning of housing and urban development works, both domestically and internationally. Moreover, HUDCO is empowered to operate as a Venture Capital Fund in the Housing and Urban Development Sectors, facilitating innovations in these fields. It can invest in or subscribe to units/shares of Venture Capital Funds initiated by the government or government agencies.

Furthermore, HUDCO has the authority to establish its own Mutual Fund for housing and urban development programs. It is also permitted to invest in or subscribe to units of Mutual Funds promoted by the government or government agencies for similar purposes. The Memorandum of Association and Articles of Association define the primary and incidental objectives, enabling HUDCO to execute its current activities effectively.

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History of HUDCO:

HUDCO, formally known as the Housing and Urban Development Corporation Limited, was established on April 25, 1970, under the Companies Act, 1956, as a wholly-owned public sector enterprise of the Government of India. The corporation’s primary mandate was to provide long-term financial assistance for housing and urban infrastructure projects in the country.

Here’s a concise history of HUDCO:

1. Founding and Initial Focus: HUDCO was founded during a period of rapid urbanization in India, aiming to address the increasing demand for housing and urban amenities. Its main objective was to finance construction activities related to housing and urban development.
2. Early Growth and Expansion: Initially, HUDCO focused on financing housing projects and basic urban infrastructure across various states in India. It played a crucial role in funding initiatives such as slum improvement, urban renewal, and the development of essential urban services.
3. Government Backing and Development: As a government-owned entity under the Ministry of Housing and Urban Affairs, HUDCO received strong support from the central government. It collaborated closely with state governments, municipal bodies, and other stakeholders to implement housing and urban development projects nationwide. HUDCO managed funds allocated by the government and other sources to fulfill its objectives.
4. Diversification and New Initiatives: Over time, HUDCO diversified its portfolio beyond housing finance. It began financing industrial projects related to building materials and expanded its consultancy services to support urban development projects both within India and internationally.
5. Public Offering and Expanded Role: In 2017, HUDCO conducted its initial public offering (IPO), marking a significant milestone in its history. The IPO aimed to raise capital for further expanding its operations and funding more housing and urban infrastructure projects across the country.
6. Current Contributions: Today, HUDCO continues to play a pivotal role in financing affordable housing, promoting urban infrastructure development, and supporting government initiatives for urban renewal and sustainable urban growth.

Throughout its history, HUDCO has been instrumental in fostering inclusive urban development and enhancing living standards in urban areas throughout India through its financial support and advisory services.

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HUDCO Retail Housing Finance Scheme:

In 1998, HUDCO launched its Retail Finance division, known as HUDCO NIWAS, with the objective of providing housing finance solutions directly to individuals. HUDCO NIWAS offers competitive interest rates, user-friendly options, and value-added services as part of its offerings. The loans cater to diverse needs, including financing for the construction or purchase of houses or flats, acquisition of plots from public agencies or reputable builders, support for cooperative societies of government employees, facilitation of house extension or improvement projects, registration of existing houses (including leasehold conversion), and refinancing of existing loans from other institutions.

In addition, HUDCO provides bulk loans to State Governments, Para-Statal institutions of State Governments, and profit-making Public Sector Undertakings (PSUs) for extending House Building Advances to their employees.

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HUDCO NIWAS features and benefits:

1. Competitive Interest Rates:
   • The scheme provides highly competitive interest rates to borrowers.
2. Monthly Reducing Balance:
   • Interest is calculated on a monthly reducing balance, offering borrowers financial efficiency.
3. Free Personal Accident Insurance:
   • Borrowers are provided with free personal accident insurance to cover the outstanding loan amount.
4. Low Charges:
   • The scheme entails zero processing fees and low administrative charges, set at 0.25% of the sanctioned loan amount.
5. No Prepayment Penalties:
   • Borrowers enjoy the flexibility of making prepayments without incurring any penalties.
6. Loan Restructuring:
   • The scheme allows for the resetting of existing loans from fixed to floating rates and vice versa, subject to nominal charges.
7. Flexible Loan Tenure:
   • Borrowers can opt for a loan tenure of up to 25 years, providing flexibility in repayment.
8. Transparency and No Hidden Costs:
   • The scheme ensures transparency in its terms and conditions, with no hidden costs for borrowers.
9. Counselling Services:
   • Free counselling services are provided to borrowers, offering guidance on alternate building technologies and house design.

HUDCO NIWAS is designed to not only provide financial assistance but also to enhance the overall experience for borrowers through its transparent and customer-friendly features.

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HUDCO Loan Products:

Housing Finance

Housing Finance at HUDCO is categorized into three segments: social housing, residential real estate, and HUDCO Niwas.

Social Housing: Under the social housing category, HUDCO financing primarily benefits borrowers from the Economically Weaker Sections (EWS) and Low-Income Groups (LIG) of society.

Residential Real Estate: For residential real estate, HUDCO financing targets public sector borrowers involved in housing and commercial real estate projects, including land acquisition. These projects predominantly cater to the middle-income group and high-income group of society. HUDCO provide financial support to state governments and their agencies, such as state housing boards, rural housing boards, slum clearance boards, development authorities, and Municipal Corporations. It is noteworthy that we ceased sanctioning new social housing and residential real estate loans to private sector entities in March 2013.

HUDCO Niwas: Under the retail finance product known as HUDCO Niwas, HUDCO offer housing loans directly to individuals for various purposes, including construction, purchase of houses and flats, acquisition of plots from public agencies or cooperative housing societies of government employees, as well as extension, and improvement of existing houses or flats. HUDCO also facilitate the refinancing of existing housing loans from banks and other financial institutions (Individual Retail Loans). Additionally, HUDCO provide bulk loans to State Governments, their agencies, and Public Sector Undertakings (PSUs) to meet the demand for house building advances for their employees/public. This includes collaboration with Housing Finance Companies (HFCs) for housing loans aimed at the general public (Bulk Retail Loans).

HUDCO Urban Infrastructure Finance

HUDCO Urban Infrastructure Finance is categorized into several segments to address diverse aspects of development:

1. Water Supply: Financing projects related to water supply, including those in unserviced areas, rehabilitation initiatives, and augmentation of existing supply and quality improvement projects.

2. Roads and Transport: Financing projects in roads and transport, encompassing roads, bridges, ports, airports, railways, and the acquisition of buses.

3. Power: Financing projects in the power sector, covering power generation from hydro, thermal, wind, solar, and biomass sources, as well as transmission and distribution systems.

4. Emerging Sector: Financing initiatives in emerging sectors, such as Special Economic Zones (SEZs), industrial infrastructure, gas pipelines, oil terminals, and projects in the telecom sector.

5. Commercial Infrastructure and Others: Financing commercial infrastructure and other projects, including shopping centers, market complexes, malls with multiplexes, hotels, and office buildings.

6. Social Infrastructure and Area Development: Financing projects in social infrastructure and area development, which includes health and education infrastructure (hospitals, health centers, schools, and educational institutions), as well as integrated area development schemes for new towns, urban extensions, growth centers, community centers, and parks.

7. Sewerage and Drainage: Financing initiatives related to sewerage and drainage, covering new schemes, as well as augmentation and rehabilitation projects associated with sewerage, drainage, and solid waste management.

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HUDCO Housing Office Address:

Head Office – HUDCO Bhawan, Core-7-A, India Habitat Centre, Lodhi Road, New Delhi – 110 003

Official website of HUDCO – https://hudco.org.in/

HUDCO Maharashtra Regional Office address – Shreyas Chambers, 2nd Floor, 175, Dr. D.N. Road, Fort, Mumbai – 400 001, MAHARASHTRA
Contact Number : 022-40154995

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