Housing

Private Sector

HUDCO will receive and consider the loan application from corporate borrowers for the purpose of:
  1. Land Acquisition(*) cum development, land acquisition(*) cum development & construction of housing, commercial & other related projects, development of housing, commercial real estate projects for sale, rental, to general public or for their own use.
  2. In addition, purchase of ready built houses, institutional or commercial & other related project properties would also be eligible for funding from HUDCO for their own use.
  3. The land Acquisition alone will not be considered for HUDCO funding.

Definition of eligible agencies in respect of Housing and Commercial Real Estate Projects,

For the purpose of eligible agencies, the corporate bodies shall include corporate sector agencies, Limited Liability Partnership Firms LLPs(*), however, societies and trusts will not be considered.

Only financially viable and technically acceptable projects from corporate Bodies with sound track record will be considered. However, the condition of track record can be dispensed with where the borrowing agency is a new agency or special purpose vehicle (SPV), formed for the purpose of housing and infrastructure activities. In such cases, back ground/ track record of the promoters should be verified and recorded.

Minimum amount of loan criteria for projects from Private Sector Borrowers shall depend upon the Type of city (including surrounding areas) as notified by the Govt. of India/State Govt. and shall be as given below

(Loan amount - Rs. in crore)
City classification Metro Class A cities Class B cities Class C cities
Loan Size 50 40 30 25

Projects with loan amount of above Rs. 100 crore for Housing and all Commercial Real Estate Projects, shall be considered on Consortium/multiple bank basis. However in case of all Commercial Real Estate Projects, the debt is to be within a maximum of 40% of total debt.

In respect of Housing and Commercial & Real Estate Projects, the extent of HUDCO Loan to be limited to 51% to 66% of the Project Cost depending upon the category/model. However, actual loan to be restricted based on Debt Equity Ratio, Means of Finance as per the Detailed Project Report, extent of security requirement or Maximum Extent of Finance, whichever is lower.

Since March 2013 , HUDCO does not extend further sanctions for Real Estate loans in the Private Sector till an overall decision is taken by HUDCO Board in respect of funding to the Private Real Estate Sector.

(*)subject to the parameters given in detailed guidelines