HUDCO or the Housing and Urban Development Corporation Ltd. is a public undertaking of the Indian government. It is involved in urban development projects including provision of low-cost housing to the masses.

WHAT IS RATING?

AA+ from both Fitch and CARE

WHAT ARE THE SCHEMES AVAILABLE?

This company offers deposits of duration ranging from 12 months to 60 months and the interest rate ranges from 7.05% to 7.5% p.a.

HOW TO INVEST?

1. Applications for Deposits in the prescribed Form, duly signed by all the joint applicants and accompanied by cheques or demand drafts, should be sent to Wealth India Financial Services Pvt Ltd.
2. Deposits will be accepted from Resident individuals, HUFs, Domestic Company, Charitable Institutions and Minors (through their guardians only).
3. Signature by thumb impression must be attested by a Magistrate or a Notary Public or a Special Executive Officer under his Official Seal.

HOW IS THE FIXED DEPOSIT RECEIPT MAILED?

1. Fixed Deposit Receipts shall be mailed by courier or Registered/Speed Post within 6 weeks of the date of realization of the Cheque, at the address of the first applicant given in the Application Form. The Company shall not be responsible for any loss or delay in transit.
2. In case of loss or destruction or mutilation of the Deposit Receipt, the Company may at its sole discretion issue a duplicate receipt, subject to compliance with its terms and conditions, including an indemnity duly signed by all the joint depositors. All expenses in this connection will be borne by the depositor(s).
3. Fixed Deposit Receipts will not be transferable. The Company may however, at its discretion permit the addition of one name to the Deposit Receipt under certain circumstances, and subject to such terms and conditions as it may deem fit. The Company will not accept or recognize any lien on or assignment of the Fixed Deposit Receipt for a loan taken from or by arrangement with the Company.

WHAT IS THE PROCEDURE FOR RENEWAL/REPAYMENT OF DEPOSITS

1. Deposit receipt duly discharged must be surrendered to the office of the Company for repayment of principal and interest upto the date of maturity at least three weeks before the due date. The repayment of deposit shall be made by Account Payee Cheque payable at par at all the branches of designated bank on surrendering the deposit receipt, discharged with revenue stamp of requisite value.

Joint Deposit

Joint Deposits can made with a maximum of three persons. Deposit in joint names shall be with or without any of the clauses namely:

1. Either or survivor
2. Number one or survivor(s)
3. Anyone or survivor(s)

The names and addresses of all the joint depositors will be entered in the ledger and register of depositors.
The interest on deposits in joint name will be paid (in case of cumulative deposit it will be deemed to accrue) to the first named depositor for the purpose of the deduction of tax at source and discharge given by him/ her will be binding on the joint holder(s).
In the event of death of first named depositor interest on fixed deposit will be paid and in case of cumulative deposits, interest will be deemed to accrue to the depositor in the order of survivors as given in the application on production of first named depositor's death certificate.
Repayment of deposit will be made as per instructions given in application by the depositors.Discharge by such person(s) will be binding on the joint holders.

WHAT IS THE PROCEDURE FOR PREMATURE WITHDRAWAL

1. Premature withdrawal will be permitted subject to Housing Finance Companies (NHB) Directions, 2010 for deposits, and interest will be paid as follows:
   1. Minimum lock in period - Three months
   2. After three months but before six months-The interest payable shall be 4 percent per annum for individual depositor and no interest in case of other category of depositors.
   3. After six months but before the date of maturity - The interest payable shall be one percent lower than the interest rate applicable to a public deposit for the period for which the deposit has run or, if no rate has been specified for that period, then two percent lower than the minimum rate at which the Public Deposits are accepted by HUDCO.
   4. All deposit accounts standing to the credit of sole/first name depositor in the same capacity shall be clubbed and treated as one deposit account for the purpose of pre-mature repayment.
2. In the event of death of a depositor, the deposit may be paid pre-maturely to the surviving depositor/s in the case of joint holding with the survivor clause, or to legal heir/s with interest at the contracted rate (applicable) up to the date of repayment.
3. For the purpose of determining the period where the period for which the deposit had run - if the period contains any part of the year then, if such part is less than six months it shall be excluded and if such part is six months or more, it shall be reckoned as one year.
4. Conditions for premature withdrawal for depositors availing Tax benefits under section 80C(2)(xvi) (a) of Iincome Tax Act, 1961:-
   1. The minimum lock in period of five years is fixed for depositors availing tax benefits under section 80C, and no premature withdrawal is allowed for such deposits prior to the above lock in period.
   2. In case of joint holding by two or three persons, only the first depositor would be eligible for tax benefit for Section 80C.
5. As per direction of NHB vide No.NHB.HFC.DIR.9/CMD/2005 dated January 10, 2005, the premature withdrawal is, however, at the discretion of HUDCO.