HDFC, LIC and HUDCO in Housing Finance

Special Features of HDFC:

1. Loans are granted for individuals up to a maximum of Rs 1 crore, repayable within 20 years. This will come under the heading Home Extension Loan.
2. Home improvement loan can be obtained either individually or jointly, where loan is sanctioned up to Rs 1 crore.
3. Short term building loan can also be applied for a maximum period of 24 months.
4. HDFC home equity loan is available for the owners of current property. Here, loan is available to a maximum of Rs 50 lakhs and minimum of Rs 1 lakh, but the market value of the dwelling unit should be at least Rs 10 lakhs.

Life Insurance Corporation Housing Finance Limited (LICHFL):

The corporation was set up under the Companies Act, 1956. Incorporated on 19th June 1989, it is recognized by NHB. It commands about 25 percent market share in the housing finance industry. It was wide network in the industry with 67 Area/Unit Offices and 6 Regional Offices across the length and breadth of the country besides about 5,000 LIC agents trained for housing finance.


1. To assist individuals by providing finance to construct/purchase residential house/flat. Assistance for second residential house/flat is also available.
2. To provide assistance for extension/renovation of residential unit.
3. To grant loans to corporate bodies (Public Limited Companies/Public Sector Undertakings) for Staff Quarters
4. To provide loans to Corporate bodies (Public Limited Companies/Public Sector Undertakings for onward lending to employees to construct/purchase residential house/flat on ownership basis (Line of credit “TO”) and Loans to individual employees of the company as guaranteed by the employer (Line of Credit “THROUGH”).
5. To extend loans to corporates for office premises.
6. To sanction loans to co-operative societies—Loans to individual members of co-operative housing societies formed by employees of Public Sector Undertakings/Public Limited Companies with guarantee of the undertaking.
7. To provide loans to public agencies like housing boards, etc for residential housing projects.
8. To extend bridge to reputed developers/builders for housing projects.

Housing and Urban Development Corporation of India (HUDCO):

Incorporated on 25th April, 1970, HUDCO was an expression of the concern of the Central Government towards the deteriorating housing conditions in the country, and a desire to assist various agencies in dealing with it in a positive manner. The principal mandate of HUDCO was to ameliorate the housing of all groups and with a thrust to meet the needs of the low income group and economically weaker sections.


1. To provide long term finance for construction of houses for residential purposes in urban and rural areas, and finance or undertake housing and urban infrastructure development programs in the country.
2. To finance or undertake, wholly or partly, the setting up of new or satellite towns.
3. To subscribe to debentures and bonds issued by the State Housing and Urban Development Boards, Improvement Trusts, and development Authorities, etc especially for the purpose of housing and urban development programs
4. To finance or undertake the setting up of industrial enterprise for building material
5. To administrate the amount received, from time to time, from the Government of India and other sources as grants or otherwise, for the purpose of financing or undertaking housing and urban development programs in the country.
6. To promote, establish assist, collaborate and provide consultancy services for the projects in designing and planning of works relating to housing and urban development in India and abroad.

Housing Programs:

HUDCO undertakes the following housing programs:

1. Urban housing
2. Rural housing
3. Cooperative housing
4. Construction housing
5. Staff rental housing
6. Repairs, renewals and Up-gradations
7. Night shelters for pavement dwellers
8. Working women ownership condominium
9. Housing schemes through NGO’s/CBO’s
10. Housing through private sector
11. Individual housing loans through “HUDCO Niwas”