ICICI Home Loan Scheme Under Pradhan Mantri Awas Yojana

Published Date - 04 September 2017 05:08:39 Updated Date - 25 October 2017 06:32:30

ICICI bank has launched home loan scheme under the credit linked subsidy component of Pradhan Mantri Awas Yojana. The bank will provide home loans of up to Rs. 6 Lakh to the people belonging to EWS and LIG categories at a special interest rate.

The bank will provide a subsidy for eligible borrowers at 6.5% per annum on a maximum amount of Rs. 6 Lakh for a tenure of up to 15 Years. ICICI Bank has signed an MoU with the National Housing Bank (NHB) to provide loans under PM Awas Yojana.

The home loan amount sanctioned to the eligible EWS/LIG applicants will depend upon their repayment capability. The loan however can be spread out for up to 30 years. The home loan scheme will significantly help bringing down the EMI amount. The applicants can however apply for larger amount but the loan amount beyond Rs. 6 Lakh will be provided at non-subsidized rate of interest.

The Credit Linked Subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet, etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component should be up to 30 sq. m. for EWS category and up to 60 sq. m. for LIG category. However, the beneficiary can construct a bigger house.

How to Get Home Loan from ICICI Under PM Awas Yojana

The home loans under PM Awas Yojana are available at 2513 branches of ICICI bank across the country. The complete list of the bank branches where the loan is available here

Eligiblity for PM Awas Yojana Home Loan Scheme are

Families not owning a pucca house

Economically Weaker Section (EWS) and Low Income Group (LIG)

Families comprising husband, wife and unmarried children

Meeting income criteria defined under the scheme

Income/ Eligibility Criteria to Avail the Home Loan

The income norms for EWS/LIG categories are defined as follows:

EWS households with an annual income up to Rs. 3 Lakh

LIG households with an annual income between Rs. 3 Lakh to Rs. 6 Lakh

Subsidy benefit of 6.5% p.a for first home buyers

Upfront subsidy benefit on principal outstanding


Scheme features

Subsidy benefit of 6.5% p.a for first home buyers

Upfront subsidy benefit on principal outstanding

How the bank will provide the loan at subsidy rate

The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the bank receives the interest subsidy, it will be credited upfront to the Loan Account. The subsidy will be calculated on NPV basis at the rate of 9% discount rate.

For example, the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.

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