Two years after its exit from retail segment, Housing and Urban Development Corporation (HUDCO) has restarted lending its retail home loans segment. The company would be facing competition from existing players like State Bank of India and HDFC bank.

Company had hinted the move two months back in June, when it proposed a home loan product named Hudco Niwas for retail consumers. The company would be giving loans upto Rs. 25 lakh at an interest rate of 10.20%; which is lower than what the market leader SBI is offering on loans upto Rs. 30 lakh.

According to the company's statement, "This makes it the most competitive home loan product available for salaried individuals in the major capital cities of India." In addition to the mortgage lending, the product would also offer other featurs like complimentary accident insurance and no pre-sanction charges.

The company had resumed retail customer home loans from August 15, however the statement made no mention of the reasons of its exit or re-entry into the segment.

Prior to the move the company was involved entirely into institutional housing project finance, and sanctioned a record Rs. 20,511 crore for FY 2011-12.