Property:
Housing Urban Development Corporation (HUDCO) offers Niwas scheme. The scheme is a housing finance instrument for individual families which offers loan assistance to individuals constructing or buying a house or a flat. Similar loan assistance is also extended to extend or improve an existing house or flat.

Amount:
The maximum loan amount will not exceed 85 per cent of the total cost of the housing unit, including incidental costs like stamp duty and registration. The maximum loan amount granted by HUDCO is Rs 15 lakh.

Eligibility:
For eligibility, the applicant must be in service, or should be engaged in any profession or business with a regular income for servicing the loan. Applicants have to submit an application form along with supporting documents.

An important condition for sanction of the loan is that the proposed owners of the housing unit, for which a loan is being sought, will have to be co-applicants. However, it is not necessary that all co-applicants need be co-owners of the property.
Also, the actual sanction of the loan depends on the repayment capacity of the borrower. Factors such as income, age, qualifications, number of dependants, income of the spouse, asset and liability of the persons, continuity of occupation and saving history are considered while arriving at the repayment capacity.

Application:
Loan applications can be submitted in any HUDCO Niwas office in the prescribed form along with supporting documents. Contact HUDCO at:

HUDCO Niwas Office
HUDCO House
Lodhi Road
New Delhi - 110 003
URL: www.hudco.org
Email: niwas.hudco@axcess.net.in

Fees:
A processing fee (non-refundable) of 0.5% of the loan amount applied for ie Rs 5 per Rs 1000 of the loan amount applied for is payable, subject to a minimum of Rs 250, at the time of submission of the application form to HUDCO Niwas.

On sanction of a loan, the loan offer is made to the applicant. On acceptance, a one-time administrative fee of 1per cent of the loan amount sanctioned is payable. In case the applicant is handicapped or a widow, the processing fees will be 0.4 per cent of the loan amount applied for, and the administrative fee will be 0.8 per cent of the loan amount sanctioned.

Payment Term:
It is normally up to 15 years, but the period will not extend beyond the age of 65 years of applicant. However, HUDCO Niwas will endeavour to determine the repayment period to suit the convenience of the applicant.

In case the applicant wishes to extend the period of repayment beyond 15 years, it can be extended up to 20 years. However, in such cases, additional interest of 1 per cent per annum will be charged over and above the regular rates.

EMI:
Loan will be repayable in Equated Monthly Installments (EMI) comprising principal and interest. The interest is calculated on the monthly reducing balance method. The monthly installment depends on the quantum of loan, interest rate applicable and the term of repayment.

Source: http://www.hudco.org/