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:
(a) Construction of a House;
(b) Purchase of House or Flat;
(c) Purchase of a plot from public agencies/Co-op. societies of Government employees/ reputed developers;
(d) Extend or improve the exiting House or Flat;
(e) Registration of existing house including conversion from leasehold to free hold;
(f) Refinancing of existing housing loan from other financial institutions/banks;
(g) Loan to Professionals for non-residential premises;
(h) Loan against residential property.
Eligibility:
The applicant must be in service, or should be engaged in any profession or business with a regular income for servicing the loan.
The proposed owners of the housing unit, for which a loan is being sought, will have to be co-applicants. However, it is not necessary that all co-applicants need be co-owners of the property.
Applicants have to submit an application form along with supporting documents. In all cases the applicant will be required to provide guarantee of one individual acceptable to HUDCO Niwas Home Loan.
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 toRs.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.
For more information visit: http://www.hudco.org
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