Buying a house is one of life’s biggest and important financial decision. CitiBank Home Loans, is a well established way of making your dreams a reality.
Citibank India a private sector bank. setup in 1902 and having a long standing credibility in the home loans sector. Usually, the home loan is a big amount taken for a longer period upon which interest is levied.
An important tool like Home Loan EMI calculator is there to help you evaluate and plan your budget beforehand.
In this article, we are going to cover all possible questions that are related to CitiBank Home Loan.
Citibank presents different interest rates for the different category. Normally loans are sanctioned at 80% of the property value.
|Loan Amount||Citibank Home Loan Interest Rate|
|Upto Rs. 28 Lakh||8.35%|
|Rs. 28 Lakh – 75 Lakh||8.35%|
|Rs. 75 Lakh – 1.50 Cr||8.35%|
|Above Rs. 1.50 Cr||8.35%|
You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extend into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.
Features of Citibank Home Loans
- CitiBank Home Loans are available for both salaried and self employed.
- Home Loans granted to age group between 23 to 65 years.
- Security: Generally Mortgage of property you are planning to purchase, renovate or construct.
- Loan to Value Ratio is 80%.
- Maximum Tenure of loan is between 25 years.
- Interest rates range from 8.35%
- EMI of Rs. 795 per lakh
So, are you ready to buy a house?
If the answer is YES, you must be having a lot of questions in your mind like:
- Where will I arrange the money from?
- Am I eligible for the loan?
- How much down payment do I have to do?
- How much EMI will I need to pay every month?
- How can I compare the EMI of different banks on my own?
- Where will I arrange the down payment amount and EMI amount from?
Let’s understand this with a simple example:
Amit’s friend Akhil is a well known architect who owns a half constructed commercial building. Akhil has a project in London and has to leave the country. Akhil suggests Amit to buy the half constructed property as the land area of this building is huge and the location surrounding it has commercialized adding to the property value.
Amit plans to continue construction of the building and as this will later become profitable to him and his family. Amit requires 1 crore for construction and doesn’t have the required funds to construct the commercial complex, therefore he approaches Citibank his personal banker for some financial assistance.
He goes to Citibank and inquires about the home loan in detail. He is feed with so much information that he gets all the more confused. Besides, he decides not to take any burden regarding the loan. Amit decides to start saving from today, so that he is able to pay the down payment of the loan as well as the EMIs.
Here lies the challenge! He wants a good return on every penny spent. After some online research Amit finds Home loan EMI calculator and ClearTax’s Save! a simple and effective solution to all his problems.
Just like Amith you too can now save for your initial payment amount as well as other payments. We also recommend you calculate and judge your investment options anyway.
In general, people start saving their money in either of these, say RD (Recurring Deposit), Savings account, SIP (Systematic Investment Plan) etc.
Let’s find out the best way to save your money for down payment and for other expenses too:
|Loan Value||1 crore|
|Time||3 yrs. (36 months)|
|Down payment||20% of Loan value = 20 lakhs|
Now, consider different scenarios for saving your money for the next 3 years.
|Type of Investment||Interest Rate||Maturity Amount after 3 Years|
|Savings Account||4%||Rs. 21,28,247 (Gains=Rs.1,28,247)|
|Recurring Deposit||6.25%||Rs. 22,49,023 (Gains =Rs. 2,49,023)|
|SIP||14-18%||Rs. 2665813 (Gains = Rs. 6,65,813)|
Hence from the above table SIP is the most beneficial saving’s scheme; as an SIP will enable you to invest regularly every month by diversifying your investment resulting in you owning your dream home sooner than you expected.
Home Loan EMI Calculator, how does it work?
A Home Loan EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R). Calculate your EMI.
Follow these steps to calculate your EMI Amount.
- Use the slider for Selecting Loan Amount
- Select the Loan tenure in Months using the slider
- Move the slider and select the Interest Rate
- Recalculate your EMI anytime by changing the input sliders
- EMI will be calculated instantly when you move the sliders.
Parameters to decide Interest Rates:
3 basic criteria on which the loan interest rate would largely depend are:
• Loan amount: Home Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate will be
• Your Salary: higher the salary amount, lower would be the interest rate
• Type of loan opted for: Women borrowers have a fair deal now! They can enjoy a lower rate of interest on home loans.
It is generally advantageous to take a housing loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
Although Citibank home loan offers lots of flexibility, there are certain financial eligibility criteria on which an individual’s repayment capacity will depend. Some of the factors are:
- Salaried, Self- Employed Professional or a Businessman
- Number of dependents
- Co-Applicants Income
- Assets, Liabilities, Stability, and Continuity of Occupation of the borrower
- Savings History
Some of the key eligibility factors are listed below:
|Interest Rate||8.35 %|
|Age||23 – 60 years|
|Job Stability in case of Salaried (in years)||2 years|
|Loan to Value Ratio||Up to 80%|
You can apply for a Citibank home loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.Process of Applying.
In addition to the mentioned interest rates, home loan also carries the processing fee, foreclosure charges, actual charges towards valuation fee, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable.
Let’s discuss some charges in detail:
- Technical and Legal Charges – CitiBank also charges technical and legal fees which differ with time according to the criteria.
- Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to Citi Bank and follow RBI rules, which states nil charges on floating rate home loans.
Process of Applying
You can apply for a CitiBank home loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.
|Filled up loan application form||Filled up loan application form|
|2 Passport Size Photo||2 Passport Size Photo|
|Identity Proof – Passport/ Driving Licence/ Voter ID/ PAN||Identity Proof – Passport/ Driving License/ Voter ID/ PAN|
|Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport||Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport|
|Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit||Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile|
Citibank Tax Benefits:
Taxpayers availing home loan do get some tax benefits. The principal repaid can be claimed under Section 80 C for up to Rs 1.5 lakhs. Further, the interest component can be claimed as a deduction up to Rs 2 lakhs in case of a self-occupied property and entirely if the property has been let out.
Similar Banks Offering Home Loans
|ICICI Bank||Kotak Bank||HDFC Bank||Axis Bank|
|PNB Bank||Andhra Bank||Corporation Bank||Union Bank|
|IDBI Bank||Yes Bank||Bank of India||Central Bank of India|
|HSBC Bank||RBL Bank||SBI||Home Loan Tax Benefit|