HUDCO Home Loan

If you’re looking forward to purchasing a house/flat/plot, refinancing or home improvement, a loan is the need of the hour since it funds a large chunk of the costs involved in fulfilling the housing requirement and lets you pay back in installments over a term of your choice at applicable interest rates.

The HUDCO Niwas loan is one of the most affordable options which comes with rich features and benefits. The company provides loans for a variety of housing needs, all under a single scheme. One can take out a loan from HUDCO for the requirements below.

• Purchase of a house/flat
• Construction of a house/flat
• Purchase of plot from government agencies or reputed builders in the private sector
• Extension or improvement of an existing house
• Registration of an existing house including conversion
• Balance transfer of existing loan issued by other banks/institutions
• Bulk loans to employees of the state government

Feature & Benefits of HUDCO Niwas Home Loan:

Massive loan repayment period:

HUDCO offers up to 25 years to repay the loan in monthly installments of your choice. The company will suggest a repayment period on the basis of eligibility and other criteria. The loan should be liquefied before the age of 65 years which implies that the loan term cannot cross the age limit set. In some cases, this cap is extended to 70 years.

Interest charges billed on reducing balance basis:

Unlike some banks/institutions where the interest charges are billed on the principal as a whole, interest here is billed on the basis of reducing balance, which means you only pay for what is outstanding in the account. Over the term of the loan, it helps in saving interest charges.

No Processing fee:

In most of the home loan offers from other banks, you will be billed a processing fee, a percentage of the loan amount disbursed. With this loan, there are no processing charges. The only charge you pay is administrative charges at just 0.25% of the disbursed loan amount.

No prepayment penalty:

With this loan, you don’t have to worry about incurring additional charges at the time of paying off the loan since there is no penalty for early repayment of the home loan.

Flexibility to switch between floating and fixed rates:

As a privileged borrower, you get the benefit of switching from fixed to floating rates or vice versa at scheduled intervals with nominal charges. This benefit helps you to take advantage of fluctuating rates and save on interest charges.

Free accidental insurance cover:

The borrower also gets a free personal accident insurance cover at no additional charges. The cover offers a sum assured in case of death/dismemberment due to accident.

Waiver of installment payments:

For loans with fixed rate of interest, the last two EMIs in the amortization schedule is waived. A one of its kind benefit which helps in saving money on the loan.

Minimal collateral requirement:

The security is in the form of mortgage where the property acts a collateral until full repayment of the loan. In addition, a third party should also sign up as a guarantor.

HUDCO Niwas Home Loan Interest Rate:

The table below provides the breakup of the interest rates on the basis of the loan amount involved.

In addition to the above, loan disbursals valued more than Rs.40/50 lakhs up to Rs.1 crore is available only for government/PSU employees with repayment through deduction in the salary. The fixed rate for such loans is 11.80 percent and 9.80 percent is the floating rate.

Note: The interest rates are subject to periodic revision without notice. Call HUDCO or visit any of its offices for details on the latest rates.

Documents Required for HUDCO Home Loan:

The documentation process consists of submitting a variety of documents at various stages. The list below will help you in preparing for the paperwork.

• Age & Residence proof - applicant and co-applicants.
• Last 6 months bank statement with transaction details or passbook copy with up to date entries.
• Latest payslips/salary certificates from the employer providing the breakup of allowances, deductions and taxes. All the applicants involved should produce these documents.
• ITR (Income Tax Returns) of last three years.
• Retired applicants should produce pension certificates issued by former employers.
• In case of income from other sources like rent, a copy of the rent/lease agreement along with banks statements or ITR should be provided supporting the source of income.
• In case of arrangement with the employer for deduction of the EMI amount from the salary, a letter from the employer confirming the transaction should be provided.
• Copy of the Sale/Lease deed, Allotment letter or any other acceptable document which supports the purchase/transaction should also be produced.
• In case of construction loan, a copy of the house plan approved by the local municipal office or any other competitive authority is required. A detailed estimate prepared by an engineer or architect may also be required on case to case basis.

Frequently Asked Questions:

1. Where can I find the loan application form to apply for a home loan with HUDCO?

   The loan application can be downloaded from hudco.org under the relevent section. Alternatively, a hard copy is also available at all regional offices of HUDCO.

2. Is there a processing fee component involved in the HUDCO home loan?

   There is no fee payable towards processing of the home loan application. However, a meagre charge billed at the rate of 0.25% of the disbursed loan amount is payable as Administrative Charges.

3. I heard about some free counselling sessions held by HUDCO for home loan borrowers. Can you provide more details?

   HUDCO organizes free counselling sessions in areas of alternate building technologies and house design at regional centers as a value add service to borrowers. Details of these sessions can be obtained from the nearest regional office of this housing finance company.

4. Does HUDCO follow fixed or floating rate system on home loans?

   It offers both these systems to borrowers with the option of switching over at frequent intervals at a nominal charge.

5. What are the repayment modes available?

   You can choose to remit the EMI payment by cheque, Demand Draft or by ECS (Electronic Clearance Scheme).