Established on April 25, 1970, the Housing and Urban Development Corporation Ltd. (HUDCO) is a fully owned organization of the Government of India. HUDCO was instituted with the objective of providing long-term finance for construction of houses, undertaking urban development programmes and infrastructure facilities.

HUDCO stands out in the burgeoning housing finance industry for its focus on the social aspect of housing and utility infrastructure provision. In spite of its commercial orientation, HUDCO has adopted a policy of preferential allocation of resources to the socially disadvantaged. It continues to emphasize on sectors which are more socially relevant rather than only on commercially viable and profitable sectors.

HUDCO has played a stellar role in the implementation of National Housing Policy. It has been entrusted with the implementation of the priority programmes of the Ministry like Low Cost Sanitation, Night Shelter for Footpath Dwellers, Shelter Upgradation under Nehru Rozgar Yojana, Rural housing under Minimum Needs Programme.

Although commercial banks and housing finance companies are doing brisk business in the swelling housing finance sector, the housing needs of the poor and low income groups have remained unaddressed. In such a scenario, HUDCO's role has become even more significant. HUDCO's social orientation of is evident from the fact that about 92 percent of the 150.93 lakh houses financed by HUDCO are for the benefit of Economically Weaker sections and Low Income categories.

In the face of growing competition, HUDCO has adopted innovation in its lending operations. HUDCO Niwas, which was launched in 1999, is an extremely popular housing loan scheme. Under HUDCO Niwas, individual housing loans are given directly to the borrowers instead of the established practice of disbursing loans through the state governments and their housing agencies. Moreover, HUDCO has moved the government seeking permission to enter the banking and insurance sectors.