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Is ICICI Bank offering 4.97% interest rate on home loan?

4.97% interest rate per annum is an effective interest rate for home loan borrowers for the first year considering the subsidy under Pradhan Mantri Awas Yojana (PMAY) and Income Tax benefit as per income slab.

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. Additionally, on your above income, you would be able to avail an income tax benefit of Rs. 72,244 for a year. Therefore, though the interest rate applied to your loan account is 8.85%, the effective interest rate would be 4.97% for the first year considering the above benefits.