Citibank loan against property eligibility requirements are easy to meet. Both salaried and self-employed applicants can avail Citibank loan against property for up to Rs 5 crore, subject to 70% of property value. The applicant should be at least 21 years of age and have work experience of 2-3, based on the profile. You can instantly check eligibility using LAP Calculator.
Citibank is one of the top multinational banks functioning in India since 1902. The bank offers a range of home loans and mortgage loans to its customers situated across the country. Citibank was the first bank in India to provide external benchmark-linked interest rates on home loans and other retail loans. While the commercial banks in India started offering such rates from October 2019, Citibank has been doing so since January 2018.
Citibank Loan Against Property enables its customers to get access to funds in an emergency. These funds are available to cater to individual and business needs. Business requirements can be for meeting working capital requirements or business expansion.
Individual needs can range from educational expenses to medical emergencies. Citibank Loan Against Property allows you to make full use of your idle property to get funds for running your business.
The features of Citibank are mentioned below:
|Loans Against Property|
Purpose of the loan
a) Day-to-day working capital needs
b) The margin for purchasing long-term business assets
c) Business expansion
d) Other legitimate business expenses
a) Educational expenses of children
b) Marriage expenses
c) Medical emergencies
d) Foreign travel
e) Buy new property
f) Repay existing debts
g) Repairs to home
h) Any other purposeful expenditure
Rate of interest
The eligibility criteria for Citibank Loan Against Property are as follows:
|Loans Against Property|
General Eligibility Norms
Applicant needs to submit the documents mentioned below to apply for the loan:
|Documents - Salaried Customers|
|Documents - Self-employed Customers|
|General Documents - KYC requirements|
Date of Birth
Citibank charges interest on a daily reducing balance method. The ideal mode of repayment for this method is EMI. Citibank offers facilities to calculate your EMI online. It enables you to determine your eligibility before you apply for the Loan Against Property.
It helps you to determine the breakup of the EMI into the principal and interest repayment components.
Citibank refers to an external benchmark rate for determining the interest rate on Loan Against Property. It uses the 3M-T-Bill rate as a reference rate. Citibank is the pioneering banking institution to do so in India. Other commercial banks started adopting the external benchmark reference rates from October 2019. RBI stipulates that all banks should switch over to an external benchmark reference rate for its retail loans. These reference rates can include the repo rate, the T-Bill rate, or any other independent market rate. The objective is to pass on the benefit of Citibank Loan Against Property interest rate fluctuations to the customer.
The T-Bill rate, announced by FBIL, is an independent reference rate. FBIL publishes these rates daily. Citibank refers to the 3M T-Bill rate for determining the interest rate on Loan Against Property. Citibank announces its reference rate every month between the 12th and 15th. This rate structure is available only for the floating interest rate loans alone.
The TBLR-3M reference rate as of February 12, 2020, is 5.10%. Though the reference rates change every month, the resets on the individual loans take place on the first day of every quarter beginning March every year.
|Home Loan / Home Loan Takeover|
|Loan Product||Rate of Interest||Effective ROI|
|Home Loans||TBLR-3M + 3.19% to TBLR-3M + 3.94%||8.29% to 9.04%|
|Home Loans with Home Credit||TBLR-3M + 3.39% to TBLR-3M + 4.14%||8.49% to 9.24%|
|Loan Against Property also known as Property Power Loans|
|Loans offered to medium and small enterprises under Priority Sector Credit||TBLR-3M + 3.69% to TBLR-3M + 4.44%||8.79% to 9.54%|
|Loans offered to small and medium enterprises under Priority sector with Home Credit||TBLR-3M + 3.79% to TBLR-3M + 4.54%||8.89% to 9.64%|
|All other non-priority sector lendings||TBLR-3M + 4.24% to TBLR-3M + 4.99%||9.34% to 10.09%|
|All other loans with Home Credit||TBLR-3M + 4.49% to TBLR-3M + 5.24%||9.59% to 10.34%|
|Home Loan Takeover with Enhancement / Home Loan Top Up facility|
|Home loan takeover with enhancement and top-up (Cash out portion within 100% of the home loan amount)||TBLR-3M + 3.44% to TBLR-3M + 4.19%||8.54% to 9.29%|
Following factors can impact the interest rate on your loan:
Following factors can affect your eligibility for Citibank Loan Against Property:
You can improve your loan eligibility through the following ways:
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No, there are specific stipulations regarding the eligibility amount. It depends on the value of the security, the income, and the repayment capacity.
The last-named condition considers the EMI/NMI factor. It is the most crucial one to decide the maximum loan eligibility.
The rate of interest depends on the following two factors:
The rate of interest determines the EMI for the loan. The EMI/NMI plays a crucial role in deciding the final eligibility.
Yes, an eligible co-applicant with a stable source of income can enhance the overall eligibility of the loan. SBI considers such income while determining the combined eligibility.
Similar to the home loan, all co-owners of the property have to be co-applicants. If any of these applicants have a regular source of income, the bank considers such income for eligibility. Besides, the bank accepts spouse, parents, children (subject to age criteria), and even siblings as co-applicants.
It depends on the amount you need. If the requirements are less, a personal loan should be the ideal product. However, if your requirements are more, it is beneficial to opt for a Loan Against Property.
The applicant should provide the following documents when applying for a Loan Against Property.
The borrower has to create the equitable mortgage of the property as security for the Loan Against Property. Besides, the SBI Rent Plus scheme requires the borrower to assign the rent receivables in the bank's favour.
The borrower should undertake to use the Loan Against Property for non-speculative purposes alone.
Any activity that promises high income from a small investment in a short time is a speculative activity. Some of the examples are:
The Loan Against Property is not available for speculative activity.