Established on April 25, 1970, the Housing and
Urban Development Corporation Ltd. (HUDCO) is a fully owned
organization of the Government of India. HUDCO was instituted with
the objective of providing long-term finance for construction of
houses, undertaking urban development programmes and
HUDCO stands out in the burgeoning housing finance industry for
its focus on the social aspect of housing and utility
infrastructure provision. In spite of its commercial orientation,
HUDCO has adopted a policy of preferential allocation of resources
to the socially disadvantaged. It continues to emphasize on
sectors which are more socially relevant rather than only on
commercially viable and profitable sectors.
HUDCO has played a stellar role in the implementation of National
Housing Policy. It has been entrusted with the implementation of
the priority programmes of the Ministry like Low Cost Sanitation,
Night Shelter for Footpath Dwellers, Shelter Upgradation under
Nehru Rozgar Yojana, Rural housing under Minimum Needs Programme.
Although commercial banks and housing finance companies are doing
brisk business in the swelling housing finance sector, the housing
needs of the poor and low income groups have remained unaddressed.
In such a scenario, HUDCO's role has become even more significant.
HUDCO's social orientation of is evident from the fact that about
92 percent of the 150.93 lakh houses financed by HUDCO are for the
benefit of Economically Weaker sections and Low Income categories.
In the face of growing competition, HUDCO has adopted innovation
in its lending operations. HUDCO Niwas, which was launched in
1999, is an extremely popular housing loan scheme. Under HUDCO
Niwas, individual housing loans are given directly to the
borrowers instead of the established practice of disbursing loans
through the state governments and their housing agencies.
Moreover, HUDCO has moved the government seeking permission to
enter the banking and insurance sectors.