HUDCO is a Techno-Financing Institute in Housing and Infrastructure fully owned by Government of India. Its goal as stated is "Serving the human settlements & urban development sector, serving the needs of social objectivity."

HUDCO was incorporated on 25th April, 1970, "an expression of the concern of the Central Government in regard to the deteriorating housing conditions in the country and a desire to assist various agencies in dealing with it in a positive manner." The principal mandate of HUDCO was to ameliorate the housing conditions of all groups and with a thrust to meet the needs of the low income group (LIG) and economically weaker sections (EWS).

• To provide long-term finance for construction of houses for residential purposes in urban and rural areas and finance or undertake Housing and Urban infrastructure development programmes in the country.

• To finance or undertake, wholly or partly, the setting up of the new or satellite towns.

• To subscribe to the debentures and bonds issued by the state Housing and Urban Development Boards, Improvement Trusts, Development Authorities etc. especially for the purpose of Housing and Urban Development programmes.

• To finance or undertake the setting up of industrial enterprise for building material.

• To administer the monies received, from time to time, from the Government of India and other sources as grants or otherwise for the purpose of financing or undertaking housing and urban development programmes in the country.

• To promote, establish, assist, collaborate and provide consultancy services for the projects of designing and planning of works relating to housing and Urban Development in India and abroad.

In the course of fulfilling these objectives, HUDCO has successfully demonstrated its capabilities to attain profitability in spite of social equity. In order to maintain sustained growth, structural changes may however be needed from time to time in keeping with the fast changing business environment.

• HUDCO has always been consistently working towards the betterment of the living conditions of the people with prime focus on the low income & economically weaker sections.

• HUDCO promotes environmentally appropriate settlements through intense & sensitive planning, it encourages simple, inexpensive & aesthetically pleasing housing designs which make use of locally available building material & indigenous construction technique, thereby reducing costs & bringing housing within the affordability of the people.

• HUDCO has taken number of steps to see that the houses built for all families remain well within their repaying capacity as given below:

  1. The Economically Weaker Section (EWS) with household income* of Rs. 2,500 per month or less.

  2. The Low Income Group (LIG) with household income not more than Rs. 5,500 per month.

  3. The Middle Income Group (MIG) with household income not more than Rs. 10,000 per month

  4. The High Income Group (HIG) with household income more than Rs. 10,001 per month.

• Emphasis on Poor

  1. 55% of the housing finance to low income Group and weaker sections

  2. Lower interest rates to low income groups

  3. lower the unit cost, higher is HUDCO's loan component

• HUDCO is a compact organization with its headquarters at Delhi. HUDCO has laid emphasis on the decentralization of its activities.

• Today in addition to the Corporate Office at Delhi, 1 Research & Training Institute, 3 Zonal Offices, 20 Regional Offices, 12 Development Offices & 2 Field Project Management Offices are functioning covering the entire country.

• The total human resource strength of HUDCO is 1141, out of which 599 are Executives with multi-disciplinary professional backgrounds of Architecture, Engineering, Town Planning, Community Development, Finance, Law Systems, Economics , Human Resource Development etc.

• HUDCO has implemented a variety of schemes for providing shelter & services , thereby improving the living conditions of the people.

• HUDCO is also contributing to improve the quality of life by augmenting providing basic community facilities & infrastructural services.

• Projects involving self help by the beneficiaries are promoted by encouraging sites & services schemes, core housing, skeletal housing, shelter upgradation & so forth.

• In order to provide basic facilities in the existing houses where adequate sanitary disposal systems are not available, financial assistance for basic sanitations schemes is being extended on liberalized terms.

HUDCO extends assistance benefiting the masses in urban & rural areas under a broad spectrum of programmes as:

1. Housing

2. Urban Infrastructure

3. Consultancy Services

4. Building Technology

5. Research & Training

"HUDCO's performance can be summarised as one signifying 'Profitability with Social Justice'." HUDCO has been continuously managing its operations efficiently & also making profits; these are ploughed back as reserves for increased operations. Till 1989-90, HUDCO was exempted from income tax liability. From 1990-91, HUDCO has been paying tax. HUDCO has paid annual dividend of Rs. 10.17 crores to Government of India for 1992-93, Rs. 14.41 crores for 1993-94, Rs. 16.11 crores for 1994-95, Rs. 18.53 crores for 1999-2000 and Rs. 20.87 crores for 2000-2001.

In case of private agencies, the Regional Chief can increase the rate of interest depending upon the risk factor. For co-generation projects, the extent of loan is 80% for Govt. Guarantee schemes and 60% for other types of securities. Interest rate for co-generation projects shall be the same as UI schemes.

The private sector loan of more than Rs.50 crores shall be on consortium basis subject to the extent of financing limit not exceeding 50% of project cost.

1. Interest rates will be 10% for EWS, Action Plan schemes, Building Centers and NGO (EWS Housing only) schemes.

2. The agency will deposit non refundable application fee along with the application for loan & the front end fee which may be either paid by the agency in advance or adjusted from the first release after issue of sanction letter (Application fee - 0.10% of Loan amount. Front end fee -0.25% for EWS, LIG, Action Plan Schemes & NGO schemes and 0.50% for all other schemes)

3. In the case of consortium funding, the terms & conditions would be as per terms & conditions of Lead consortium partners.

4. Joint sector agencies having more than 26% equity from Govt. will be charged the rate as applicable for public agencies. The balance joint sector agencies will be charged rate applicable for private agencies.