Citibank being one of the largest private sector banks is a provider of banking and financial services to its customers. The bank offers a variety of home loans for individuals to enable them to acquire their dream home at competitive interest rates and with attractive features. With its home credit feature, one can enjoy the benefits of interest savings which are available for faster repayment, or withdrawals towards a home loan. So, firstly let’s become more familiar regarding the current home loan interest rates for different types of citibank home loans.
Citibank Home Loan Interest Rates 2020
Citibank home loan interest rates starting from 8.07% p.a. onwards.
Citibank Home Loan / Home Loan Takeover
|Citibank Home Loan Interest Rate||8.07% onwards|
Home Loan Takeover with Enhancement / Home Loan Top-up
|Citibank Home Loan Takeover with Enhancement / Home Loan Top-up||8.60% onwards|
Let’s now understand some of the key features and benefits of home loan provided by Citibank.
Features and Benefits of the Citibank Home Loan
The Citibank Home Loan offers various features which are to be known before any individual decides to apply for Citibank Home loans. The features are as follows:
- The bank charges attractive rates of interest on the housing loan scheme which are not hard on the pocket of the applicant and is reasonably affordable. The interest rates charged by the bank are very competitive and in the range of rates charged by other banks in the Home Loan sector. Through other features like Home Credit the bank seeks to lower the interest rates charged so that the customers may prefer Citibank over other banks to fulfil their home loan needs.
- The home loan available at Citibank ranges between minimum 5 lakhs to maximum Rs. 10 crores. This means that any individual who approaches the bank for a home loan can do so for amounts up to Rs. 10 crores which is sufficient enough to even buy a luxury home. The minimum amount is Rs. 5 lakhs and any amount lower than this amount cannot be availed of as the customer must necessarily avail a minimum of Rs. 5 lakhs for his home purchase requirement.
- The Citibank Home loan repayment tenure is limited to 25 years. Thus the individual who avails the loan needs to make sure that the EMI payments will have to be completed within a maximum of 25 years. The individual may choose a lower tenure of repayment like 10, 15 or 20 years but the period of repayment cannot exceed 25 years and the loan has to be repaid within that time. The choice of the term depends on the individual which in turn depends on the applicant’s affordability regarding the EMIs (Equated Monthly Instalments) required to be paid. The customer may choose to pay large EMIs thereby paying off the loan within a short duration for which a short tenure is chosen. On the other hand, the customer may also choose to pay smaller EMIs thereby lengthening the loan tenure and as such choosing larger loan tenure of 4 or 5 years. Moreover, the tenure decision is also dependent on the bank’s discretion and the bank may choose to grant a lower term against a higher term chosen by the applicant or vice-versa.
- The Citibank home loan schemes issued are to a maximum of 80% of the property value and not higher. So the bank keeps a margin of 20% while issuing the loan. For instance the value of the property is 50 lakhs, the bank will issue a maximum loan of Rs. 40 lakhs and nothing more. However, the customer may choose to obtain Rs. 30-35 lakhs, if he/she has the balance funds but the maximum limit will never exceed 80% of the property value.
- A unique feature of the loan is that the bank allows the flexibility to customers to pay interest-only during the construction period if the property chosen for purchase is under construction.
- The chargeable interest is calculated on a daily reducing balance method which means that the applicant will be charged interest only on the amount outstanding at the end of the day and not on the entire loan amount which motivates the customer to pay off the loan regularly.
- No Guarantor /Security. A guarantor is someone who guarantees to pay the loan himself/herself if the applicant fails to repay the loan himself. Under the Home Loan scheme, the bank does not ask for any guarantor who should undertake to guarantee the loan repayment. Collateral is required.
- The loan is repaid through Equated Monthly Instalments (EMIs). The loan is generally paid through post-dated cheques but can also be paid through Electronic Clearing Systems (ECS) or standing instructions to the bank to debit the amount of loan through the existing Citibank savings account or any other bank’s savings account.
- Loan is issued to any individual who is at least 23 years old and has a work experience of at least 2 years.
- To manage the loan account the bank offers a host of facilities. A customer can request services from the bank at no additional cost either online or through mobile banking or through Citi Alertswhich inform the customer of any relevant transactions through a SMS and email. The bank sends Statement of Account yearly either by mail or post.
- Home loans are available for properties which are either under construction or are ready to be sold.
- Citibank pre-approved home loan facility is also available where the applicant may avail a loan first and search the property later based on the granted amount of loan. The pre-approved home loan is granted at the discretion of the bank only if the bank satisfies itself with the income credibility and the repayment capacity of the applicant. Moreover, the property chosen should meet the Citibank Credit parameters as laid down by the bank.
- Top-up facility is also available and the applicant can avail additional funds through top-up home loan. To avail a top-up home loan, the applicant should have paid off at least 6 months’ EMIs of the existing loan. Furthermore, the loan is issued at the discretion of the bank and may be denied if the bank is not satisfied with the credit worthiness of the applicant.
- The loan can be either fully or partially prepaid by the customer based on certain terms and conditions. By full prepayment one means that the loan can be fully prepaid before the end of the tenure and by partial prepayment one means that the loan can be partially repaid before the tenure completes to reduce the interest charged.
Takeover Plus Enhancement (Home Loan Transfer)
This is a Citibank home loan transfer facility under which any existing Home Loan can be transferred to the bank at attractive rates of interest. The features of this facility are as follows:
- Home loans of upto 5 crores can be transferred to the bank and EMIs can be availed form Citibank
- The repayment tenure is up to 20 years so the customer has the option to pay off the loan within 20 years and the EMIs are calculated based on the term opted for. With a higher repayment term, EMIs are lower and with a low term, EMIs are higher.
- The bank sanctions transfer of an existing loan based on the repayment record of the loan with the earlier bank.
- The customer may apply to transfer the existing loan either online through its ‘Apply Online’feature, via Priority Service Phone Banking numbers or by visiting the nearest Citibank branch.
- Besides transferring an existing home loan and reducing the resultant EMI, the bank also offers enhancement facility of up to 3 crores for any of the applicant’s needs like personal, professional or business needs. The enhancement feature can also be used to pay off other loans availed from otherfinancial institutions.
- The loan is repaid through Equated Monthly Instalments (EMIs). The loan is generally paid through post-dated cheques but can also be paid through Electronic Clearing Systems (ECS) or Standing Instructions (SI) to the bank to debit the amount of loan through the existing Citibank savings account or any other bank’s savings account.
- The loan can be either fully or partially prepaid by the customer based on certain terms and conditions. Both full and partial prepayments re dictated by terms and conditions laid down by the bank and may be chargeable.
Citibank Home Credit
Citibank offers an add-on advantage of Home Credit which goes towards reducing the interest pay-outs made by the borrower. The Home Credit principle works on the opening of a Home Credit account which in practice is a Current Account linked to the Home Loan account. Any amount deposited in the Home Credit account after meeting the relevant threshold limit of Rs. 1 lakh is transferred to the loan account which goes towards reducing the outstanding balance of the loan. Since home loan interest is calculated on a daily reducing basis, any amount transferred form the Home Credit account to the loan account reduces the outstanding balance and therefore the interest charged. Moreover, there is an overdraft line facility in the loan account wherein the funds credited form the Home Credit account can be withdrawn any time if the customer requires funds for any emergency requirement.
The benefits promised by the Home Credit facility is that any surplus cash with the applicant can be made to be used against paying off the loan liability which would otherwise earn interest and increase the outstanding amount. The reason against using the excess money for prepayment is that any amount prepaid towards the loan cannot be withdrawn in case of emergencies but when deposited in the Home Credit Account, the amount goes towards the same cause of loan repayment while at the same time being available for withdrawal in case of cash requirements. The consequent saving in the interest rate is against the actual amount deposited in the Home Credit Account. Moreover, the Home Credit account works as a Current Account and so comes with all the facilities associated with a current account like a cheque book and an ATM card. The customer can make transactions, transfer funds across the same bank or other bank accounts, pay utility bills or pay off the credit card outstanding bills.
Types of Citibank Home Credit Options
There are 2 types of options available under the Home Credit feature
- Home Credit Vanilla Option – The Vanilla Option offers liquidity wherein an overdraft line is set in the Home Credit account and interest savings arising in the account which is calculated as the deposits made and the interest saving resulting thereof. The overdraft line increases in tandem with the interest savings and is payable monthly back to the customer and is also available for withdrawal
- Home Credit Fast Track Option – Under this option, the overdraft line set in the account is not payable back to the customer. The interest savings arising out of the amount deposited are adjusted against the outstanding balance of the home loan thereby making it possible for the customer to pay-off the loans faster.
Citibank Home Loan for Non-Resident Indians (NRIs)
Apart providing home loans to Indian Nationals, Citibank offers home loans to NRIs also. Citibank NRI Home Loan is also available from the bank. Let us see the features of the loan:
- The loan is available for purchasing a ready house or flat, for purchasing a house which is under-construction by a known developer or for getting a loan on a house already owned by the individual.
- Loan tenure is limited to the term of the loan being completed before the applicant reaches 65 years of age.
- The loan can be taken for a minimum of Rs. 20 lakhs and maximum amount of Rs.5 crore and the actual amount of loan granted would be 80% of the property value which is to be purchased for the loan amount upto Rs. 75 lakhs and 75% of property value for loans above Rs. 80 Lakhs.
- The installments will be deducted from the individual’s Rupee Checking Account maintained with the bank
Citibank Home Loan Eligibility Calculator
The home loan eligibility criterion depends on the country where the individual resides.
For Middle East residents, the individual should be a salaried individual with at least a work experience of 2 years and having the NRI status for a minimum of 12 months. The minimum salary of the individual should be AED 100, 000 or BHD 10, 000 per annum. The individual should also have a blood relative who is a resident of India and acts as a co-applicant.
If the individual resides in the Asia Pacific region, he should be a salaried employee with 2 years of experience having a NRI status of at least 12 months. The minimum salary of the individual should be SGD 100,000 per annum. A blood relative residing in India is also compulsory who would have to act as a co-applicant of the loan
Checking Home Loan Eligibility
An applicant wanting a home loan from Citibank should first needs to be eligible for the loan as per the bank’s requirements to get the home loans sanctioned. Checking the eligibility has been simplified by the bank where the prospective client can simply log on to the website of the bank and check his/her eligibility. If he/she decides to apply for the loan, the same can be done online too. For checking eligibility, the applicant needs to provide his income details, details of other loans and liabilities and the resultant eligibility is displayed of availing the amount of loan and the respective EMI chargeable.
Fee and Charges
The following charges are applicable for Home loans including takeovers and enhancements.
|Description||Citibank Home Loans||Home loan Takeover Enhancement or Top-up|
|Application Fee||Up to Rs.5000 which is taken upfront on loan application whether the loan is sanctioned or not and is non-refundable||Up to Rs.5000 which is taken upfront on loan application whether the loan is sanctioned or not and is non-refundable|
|Booking Fee||Up to 0.40% of the loan amount sanctioned which is collected at the time of loan documentation and is non-refundable||Up to 0.75% of the loan amount sanctioned which is collected at the time of loan documentation and is non-refundable|
|Cheque / ECS / SI Bounce Charges||Rs. 500||Rs. 500|
|Penal Interest||@ 2% over the applicable interest rate on the outstanding amount of loan for the default period in case of late payment of EMI||@ 2% over the applicable interest rate on the outstanding amount of loan for the default period in case of late payment of EMI|
Citibank Home Loan Documents Required
- Last 3 month’s salary slips
- Form 16, Last 3 months’bank statement
- Aadhar Card number, Driving License, Voter ID cardor PAN Card
- Latest Sale Deed with previous chain link
- For properties which are under construction an Allotment Letter, Payment Plan and receipts would be required.
Citibank Home Loan EMI Calculator
The bank allows the facility of EMI calculation beforehand for any prospective applicant so that he/she may check the EMI charged and decide on the loan amount based on affordability and maintain the monthly budgets. Here are some of the instances of EMI calculation for different situations.
- A wants to buy a premium property in the upcoming district of his city. The said property is under construction and will cost somewhere around 50 lakhs. Mr. A has a provision for 10 lakhs and decides to approach the bank for the balance 40 lakhs in a Citibank Home Loan. The repayment tenure chosen by him is 15 years for which the bank charges him an Equated Monthly Instalment (EMI) of Rs.40, 571 approximately at an interest rate of 9.00%
- B, a businessman staying at Nagpur wants to buy a house in Mumbai for his son who has been located there for work. The value of the flat chosen by his son nearest to his work place is Rs.40 lakhs for which Mr. B approaches Citibank for a Home Loan. Being a ready flat, the bank grants him a loan after checking all the necessary eligibility criteria. The loan amount granted is 80% of the property value resulting in Rs.32 lakhs. The corresponding EMI charged by the bank at an interest rate of 10% for a tenure chosen by Mr. B of 12 years is Rs.38, 243 approximately.
- C approaches Citibank for a pre-approved Home Loan of Rs.25 lakhs for a yet unidentified property under an upcoming project. After the necessary credibility checks, the bank agrees to sanction the loan for a repayment tenure of 20 years at a rate of interest of 11.50%. The resultant EMI comes to Rs.26, 661 approximately
The following table records the EMI of each of the above-mentioned cases for easy understanding:
|Applicant||Loan Amount||Interest Rate||Term||EMI|
|Mr. A||40 lakhs||8.35%||15 years||30, 038|
|Mr. B||32 lakhs||8.35%||12 years||35, 255|
|Mr. C||25 lakh||8.35%||20 years||21, 458|
Applying for Citibank Home Loan Online
To cash in on the online advantage which reduces hassles and is easier, one can apply for a Citibank Home Loan online through the following steps:
Visit Paisabazaar.com and choose ‘Home Loans’ tab and fill in the required fields.
After doing the necessary check like checking credit score and creditworthiness, etc. the bank will issue the loan. So, the customer does not have to engage in unwanted hassles to avail a loan. The applicant needs to provide his/her personal details like name, age, address, occupation, income, etc. which the bank uses to match to the eligibility criteria laid down for availing home loans. If the profile of the applicant matches the required eligibility criteria, all the documentation process is completed and the applicant is required to submit the necessary documents as mentioned. After the bank satisfies itself with the home loan eligibility criteria and after all required documents are submitted and successfully verified, the loan is granted instantly. It may also happen that the bank calls the applicant after he submits the home loan application form to verify the loan requirement and for other details.
Checking Loan Status
Even after opting for a loan, loan processing takes some time before being granted and money to be credited in the customer’s account. Meanwhile, if the customer wants to check the status of the loan application, the bank also helps in providing the relevant facility. For checking the loan status during loan processing, the applicant simply needs to visit our website to view the loan status. For checking the status of your home loan, you will need to provide the loan application details or the loan sanction details in case you want to check the loan account with the outstanding balance and the outstanding term.