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Can I avail a home loan at 4.87% interest rate?

4.87% interest rate is an effective interest rate for first year for home loan borrowers considering the subsidy under Pradhan Mantri Awas Yojana (PMAY) and Income Tax benefit for a year.

For Example:-
If your annual income is Rs. 12.35 lakh and you avail a home loan of Rs. 25 lakh from ICICI Bank under CLSS (Credit Linked Subsidy Scheme) of PMAY then you would receive a subsidy of Rs. 2.30 lakh. Also on your above income, you would be eligible to avail income tax benefit of Rs. 72,244 for a year. Therefore, though the interest rate applied to your loan account is 8.70%, the effective interest rate would be 4.87% for the first year considering the above benefits.