ICICI Bank’s credit-linked subsidy for PM Awas Yojana

ICICI Bank’s credit-linked subsidy for PM Awas Yojana

In order to support Government’s vision to provide housing for all by 2022, India’s largest private sector lender ICICI Bank has announced a credit-linked subsidy scheme for home loans under Pradhan Mantri Awas Yojana (PMAY). Under this scheme, individuals including women from the economically weaker sections will be able to acquire and construct their first brick-and-mortar house by paying significantly lower equated monthly installments (EMIs), ICICI Bank said in a statement.

ICICI Bank has signed a Memorandum of Understanding (MoU) with National Housing Bank (NHB) to facilitate the credit-linked subsidy to those borrowers who do not have a brick-and- mortar (pucca) house, with families comprising husband, wife and unmarried children.

As per the scheme, an eligible customer will get a subsidy at 6.5% per annum on a maximum amount of Rs 6 lakh or the loan amount, whichever is lower, for a maximum tenure of 15 years. The subsidy will be computed on the net present value method.