Housing and Urban Development Corporation (HUDCO) Ltd is the premier housing finance institution in the public sector.  Other financial institutions like Life Insurance Corporation (LIC), General Insurance Corporation (GIC) and United Trust of India (UTI) have been channeling most of their housing related finance to HUDCO. 
 
Other sources of funds available to HUDCO are through the equity contributions from government, borrowings from open markets by the issue of Shelter/Urban Bonds and debentures subscribed by banks and the insurance companies.  These funds are mostly deployed for indirect financing through housing agencies like State Housing Boards, Land Improvement Trusts, Development Authorities, Municipal Corporations, cooperatives, etc. 
 
HUDCO has been engaged particularly in financing social housing for the economically weaker sections and low-income groups in Kochi.  It encourages indigenous and low cost building materials and techniques, thereby bringing housing within the reach of the common people.  It follows a differential interest rate policy for various categories of households by charging lower rates of interest for the economically weaker sections.  This policy provides incentives for executing agencies engaged in promoting housing for the less privileged categories.
 
Some of the leading Builders in Kochi were also lucky enough to get loans of huge amounts to start with the construction operations on big real estate projects.  While the output or the final result in the public projects funded by institutions like HUDCO was rather dismal, the private players were seen to be adept in producing the best result at minimum investment.  It is a record of sorts and the initial help availed by them has been paid back to the concerned financing institution on time.