HUDCO NIWAS HOME LOANS

Individual Housing Loan Scheme

HUDCO Housing and Urban Development Corporation Ltd.
(A Government of India enterprise)
Hudco Bhawan,
India Habitat Center,
Lodhi Road, New Delhi-110003 

HUDCO is offering financial assistance to individuals to enable them to acquire a home of their own through its HUDCO NIWAS HOME LOANS Scheme.
HUDCO NIWAS HOME LOANS 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 FOR LOAN

(a) An applicant must be in service or engaged in any profession or business with regular income for servicing the loan.
(b) 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.
(c) 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.
 
LOAN APPLICATION
An application for loan shall be submitted in any HUDCO NIWAS HOME LOANS office in the prescribed form along with supporting documents. This form with a list of supporting documents is available at all HUDCO NIWAS HOME LOANS offices. 
RATE OF INTEREST 

LOAN REPAYMENT PERIOD

Loan repayment period up to 25 years. The period will not extend beyond the age of 65 years (relaxabale by 5 years on the merits of each case) of the applicant. However, HUDCO NIWAS HOME LOANS will endeavor to determine the repayment period to suit the convenience of the applicant.
For loan to professional for non-residential premises & loan against residential property a maximum period of 10 years will be allowed for repayment of loan subject to age of the applicant not exceeding 65 years and repayment capacity.

SECURITY FOR THE LOAN

Security for the loan is the first mortgage of the housing unit to be financed normally by way of deposit of original title deeds and or such other collateral security as may be necessary. In some cases, interim security may be required. In all cases the applicant will be required to provide guarantee of one individual acceptable to HUDCO NIWAS HOME LOANS. In respect of other HUDCO NIWAS HOME LOANS applicant who have already availed House Building Advance form their employers, may accept second mortgage of housing unit subject of (a) central and state Govt. employees – assignment of benefits under central/state Govt. Group Insurance scheme of else the repayment of the loan is completed before superannuating,
(b) public sector undertaking employees-loan is repaid by employer through salary deduction/post dated cheques (PDCs) and repayment of loan is completed before superannuation of employee. In respect of house or flat purchased on power of attorney, HUDCO NIWAS HOME LOANS may extend loan provided alternate tangible security of adequate value is made available to Hudco. Alternate security can be third party mortgage, mortgage of other property owned by applicant/co-applicant, pledge of UTI units, National Saving Certificates, LIC policies etc.

ADMINISTRATIVE CHARGES

The administrative charges shall he 0.25% of the loan amount sanctioned.

LOAN REPAYMENT

Loan will be repayable in Equated Monthly Installments (EMI) comprising principal and interest. The interest is calculated on monthly reducing balance method. The monthly installment depends on quantum of loan, interest rate applicable and the term of repayment of the loan. The sample of various EMI’s is given in the table below.
 

EMI FOR LOAN OF RS. 1,00,000/-(on monthly rest basis)
 

Repayment by way of EMI commences from the month following the month in which the last installment of the loan is disbursed by HUDCO NIWAS HOME LOANS. Until the loan is fully disbursed, Pre-EMI interest is payable only on the portion of the loan availed, as on the last day of every month.

DISBURSEMENT OF THE LOAN

The loan will be disbursed after a technical appraisal has been made and on completion of legal documentation and after investment of the applicant’s own contribution & submission of fire & natural calamity insurance policy assigned in favour of HUDCO by the borrower. Own contribution is the total cost of the housing unit, less the loan amount from HUDCO NIWAS HOME LOANS
The loan will be disbursed in full or in suitable installments taking into account the requirements of funds and progress of construction.

OTHER ATTRACTIVE FEATURES/VALUE ADDED BENEFITS

a) Most competitive interest rate

b) No processing fee.

c) No charge on account of repayment/prepayment of loan.

d) Facility or resetting of existing loan from fixed loan from fixed to floating & vice-versa on nominal charges.

e) Free personal accidental insurance cover to borrowers. (Death only)

f) Waiver of last two EMIs for loan above 5 years under fixed rate.

(Provided all other installments are received as per schedule without delay)
g) Transparency & No hidden cost.
MODE OF PAYMENT
Applicant can make payment for fees, charges and towards loan repayment (EMI & Pre EMI) by cheque marked “Payees account only” favoring “Housing and Urban Development Corporation Ltd.” Drawn on a bank in a city where HUDCO has an office, or by demand draft (payable at par to HUDCO).

TAX BENEFITS

Tax benefits on principal repayment (u/s 80-c up to Rs. 1,00,000/-) and interest (u/s 24 up to Rs.1,50,000/-) components of loans are available under the Income Tax Act, 1961. All these benefits could vary each year, current benefits may be checked.

 
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).