Apply Online for ICICI Home Loan Scheme 2026 Under Pradhan Mantri Awas Yojana

ICICI Bank is offering home loans under the Interest Subsidy Scheme (ISS) of Pradhan Mantri Awas Yojana Urban 2.0 (PMAY-U 2.0). Eligible families from the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) can get an interest subsidy of up to ₹1.80 lakh on home loans sanctioned and disbursed on or after 1 September 2024.

The old Credit Linked Subsidy Scheme (CLSS), which gave a 6.5% subsidy on loans up to ₹6 lakh for EWS and LIG families and separate benefits for MIG-I and MIG-II, closed on 31 March 2022. It has been replaced by the Interest Subsidy Scheme under PMAY-U 2.0, and ICICI Bank is one of the banks taking part in this new component.

Quick Links: How to Apply | Eligibility Criteria | Documents Required | Subsidy Disbursement

This article explains the complete details of the ICICI Bank home loan scheme under Pradhan Mantri Awas Yojana Urban 2.0 for EWS, LIG and MIG category families.

ICICI Bank Home Loan Scheme 2026 under PMAY-U 2.0

Pradhan Mantri Awas Yojana Urban 2.0 was launched by the Government of India to provide financial help to 1 crore urban poor and middle class families to buy, build or rent a house at an affordable cost. The scheme runs through four verticals, and ICICI Bank is taking part in the Interest Subsidy Scheme, which gives a subsidy on home loans for EWS, LIG and MIG families.

Under the Interest Subsidy Scheme, the subsidy is available on home loans sanctioned and disbursed on or after 1 September 2024. The subsidy is meant for the purchase, re-purchase or construction of a house. ICICI Bank has signed up with the National Housing Bank and other central nodal agencies to provide this benefit to eligible borrowers.

Eligible families can get a maximum interest subsidy of ₹1.8 lakh, with a maximum Net Present Value of ₹1.5 lakh at a discount rate of 8.5%, for loan tenures of more than five years. For households with an annual income of up to ₹9 lakh, a subsidy of 4% is given on the first ₹8 lakh of the loan amount for a tenure of up to 12 years.

How to Apply for ICICI PMAY Home Loan

Eligible families can apply for the home loan subsidy under PMAY-U 2.0 through ICICI Bank. The application is done online through the official PMAY portal, and the loan is then processed by the bank.

STEP 1 - Go to the official PMAY applicant portal and register with your personal details.

STEP 2 - On the loan details tab, select ICICI Bank as your lender and enter the correct home loan details.

STEP 3 - Download the customer self-declaration form from the ICICI Bank website and fill in the required details.

STEP 4 - Submit the signed self-declaration form at the nearest ICICI Bank branch or with the relationship manager mapped to your home loan.

For existing ICICI Bank home loan customers whose loan was sanctioned and disbursed after 1 September 2024, the same process applies. The bank will check the eligibility and forward the claim for the subsidy.

Eligibility Criteria for ICICI Bank PMAY Home Loan

Your eligibility to get the subsidy under the Pradhan Mantri Awas Yojana Urban 2.0 scheme from ICICI Bank depends on the income and property limits set by the government. The main points are given below.

Other important points about the eligibility criteria

• The subsidy under the scheme is given only once for a property. If the house is sold to someone else, the new buyer cannot claim the subsidy on the same property.
• If two or more family members take a combined or separate loan on the same property, they are treated as one family for the calculation of income and benefit.
• If a borrower has taken a home loan from one lender and later shifts to another lender, the borrower cannot claim the interest subsidy again.

Subsidy Disbursement

The subsidy under the Interest Subsidy Scheme is released to the beneficiaries in five equal yearly instalments. The amount is paid through Direct Benefit Transfer into the loan account of the beneficiary, provided the loan is active at the time of release and more than 50% of the principal is still outstanding.

The subsidy is credited by the lender to the borrower's account upfront by deducting it from the principal loan amount. The borrower then pays the equated monthly instalment as per the lending rate on the remaining principal amount. For example, if the loan is ₹8 lakh and the subsidy works out to ₹1.5 lakh, the amount is reduced upfront from the loan, and the borrower pays EMIs on the reduced amount.

Documents Required to Submit for the Loan

Beneficiaries need to submit a self-attested income certificate or affidavit as proof of income, along with the signed self-declaration form. The bank may also ask for identity and address proof of all the family members.

• Self-attested income certificate or affidavit as proof of income.
• Signed self-declaration form confirming the details of the family and the property.
• Identity and address proof of the applicant and co-applicants.

How the Bank Provides the Loan at a Subsidised Rate

The bank claims the subsidy benefit for eligible borrowers from the central nodal agency. The agency checks the claims to remove cases where a borrower has submitted multiple requests. Once the subsidy is received, it is credited upfront to the loan account of the borrower.

The subsidy is calculated on a Net Present Value basis at a discount rate of 8.5%. The borrower pays the EMI on the reduced loan amount, which brings down the monthly payment and makes the house more affordable.

Beneficiaries under the PMAY Scheme from ICICI Bank

The scheme is offered to families that include a husband, wife and unmarried children. An adult earning member, irrespective of marital status, can be treated as a separate household in the MIG category. The family should not own a pucca house in the name of the beneficiary or any member of the family in any part of India.

For more details, visit the official ICICI Bank PMAY page or the official PMAY Urban website. You can also check the ICICI home loan EMI calculator to find out your monthly payment.