ICICI Bank launches credit-linked subsidy scheme under PMAY

An eligible customer will get a subsidy at 6.5% pa on max Rs 6 lakh or loan amount, whichever is lower, for a max tenure of 15 years.

Country's largest private sector lender ICICI Bank Thursday launched a credit-linked subsidy scheme for home loans under Pradhan Mantri Awas Yojana (PMAY).

Under this scheme, individuals including women borrowers from the economically weaker section and low income group will be able to acquire and construct the first brick-and-mortar house of the family by paying significantly lower equated monthly installments (EMIs), ICICI Bank said in a statement.

The scheme is available to those without a brick-and- mortar (pucca) house, with families comprising husband, wife and unmarried children.

ICICI Bank has signed an MoU with National Housing Bank (NHB) to facilitate the credit-linked subsidy to eligible borrowers.

Under 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 is computed on the net present value method.

"ICICI Bank is committed to support Government's vision to provide housing for all by 2022. We believe that this scheme will empower a larger section of customers including women borrowers to realise the dream of owning their first home", ICICI Bank Executive Director Rajiv Sabharwal said.

The loan amount would be as per eligibility of customer and there is no maximum limit on the amount, it added.