HUDCO will receive and consider the loan application from corporate borrowers for
the purpose of:
- 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.
- In addition, purchase of ready built houses, institutional or commercial & other
related project properties would also be eligible for funding from HUDCO for their
- The land Acquisition alone will not be considered for HUDCO funding.
Definition of eligible agencies in respect of Housing and Commercial Real Estate
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
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)
Class A cities
Class B cities
Class C cities
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