Citibank unveils novel mortgage home loan facility in India
21 Dec 2009
Citibank today announced the launch of a novel mortgage product 'CitiHome One', a new mortgage product that will combine a conventional term loan and a credit line to a home loan facility.
'CitiHome One', according to Citi, is the first "universal" mortgage product to be available in the market.
"With CitiHome One, customers will enjoy a dual advantage of interest savings on their home loans by utilising surplus funds and the flexibility to structure repayments as per their convenience," a Citi release said.
Within an overall limit, customers can determine for themselves the amount they wish to take as credit line with the balance being structured as a term loan, Citi said, adding that the loan would also automatically open a new current account facility for the borrower.
"This account, where the credit line is set, will serve as an umbrella account and will allow customers to consolidate all their banking requirements into a single `CitiHome One' account relationship," the release said. This can be used to finance the home purchase and the surplus funds can be ploughed back for saving interest on the home loan. The available credit limit can also be used to finance all future needs, it added.
Citibank also unveiled the CitiHome One variant for loans against property.
Customers can take a maximum of Rs5 crore under the CitiHome One loan facility while the credit line can extend up to 30 per cent of the total facility or Rs1 crore, whichever is lower.
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