Provide such financial assistance by way of loans andadvances to Urban and Rural Local Bodies in the State for their developmental Schemes besides acting as a nodal agency for implementing various development schemes including social sector.

Kerala Urban Development Finance Corporation (KUDFC) was incorporated in 1970 to provide Loan Assistance to urban local bodies. From 25.05.2004, it has been extended to Gramapanchaths, accordingly the name of the company was changed to Kerala Urban and Rural Development Finance Corporation (KURDFC).

The Company is a Non-Banking Financial Company (NBFC) and is registered with the Reserve Bank of India (RBI). The Company is categorised under Non-Deposit taking NBFC by RBI. KURDFC is a Government Company with shares more than 51 % held by Government of Kerala and the rest held by various Local Self Government Institutions.

The main activity of the Company is to provide loan assistance to various Local Self Government Institutions in the State of Kerala for their developmental activities and thereby to increase the non-tax revenue of local bodies. This Corporation was incorporated to aid Local Self Government Institutions with loans at minimum rate of interest. KURDFC is playing a significant role as a State Level Dedicated Infrastructure Financing Agency that would support both Government of India’s and Government of Kerala’s objectives and policies for the urban and rural sector.

KURDFC implements certain Government schemes such as LIFE (Livelihood, Inclusion and Financial Empowerment) Mission. These schemes are financed through Housing and Urban Development Corporation (HUDCO). KURDFC acts as an intermediary between the Government and Local Self Government Institutions.