Citibank loan against property interest rates start at 6.90 % p.a. for up to 15 years. Besides low Citibank LAP interest rate, you will also get flexible repayment tenure and loan up to 70% of property value. Apply online for instant approval of Citibank LAP up to Rs 5 Crore for purchase of machinery, closure of existing high-cost debts, buying a new property, funding child's education and more.
Citibank has an illustrious history of offering banking services in India for more than a hundred years. The multinational bank commenced its operations in India by opening its first branch in the country in 1902. Since that day, the bank has offered a variety of banking products, including deposits and loans to its Indian customers. Amongst the loan products, the home loan and the personal loan are some of its most popular products. Citibank credit cards have a great deal of acceptability in India. The bank has an excellent product, Loan Against Property to provide asset-backed financial assistance to its customers.
With effect from April 01, 2016, banks switched over to the MCLR concept. The objective of introducing this concept was to link the bank's cost of funds to its retail lending rate. It entailed tying up with an external benchmark rate. Within a couple of years, RBI found out that banks were reluctant to pass on the benefits of market rate fluctuations to its customers. Therefore, Reserve Bank of India introduced a new concept whereby it advised banks to link with an external benchmark rate and alter the individual lending rates automatically.
The RBI offered the banks to choose any of the market-linked rates like the repo rates, Treasury Bill rates, and so on. It offered banks time up to October 2019 to switch over to the new lending rate structure. However, Citibank decided to link with the Treasury Bill (3M-T-Bill rate) with effect from January 24, 2018.
The Loan against the Mortgage lending rate is now linked to the 3M-T-Bill rate. Citibank adds its spread and arrives at the TBLR (Treasury Bill Linked Rate). Besides the loan against the mortgage, Citibank links its home loan interest rates with the TBLR.
This rate applies to loans with floating rates of interest alone. As on date, Citibank does not offer any fixed-rate loan product in home loans and loans against property.
As on February 12, 2020, the T-Bill-3M rate is 5.10%.
Home Loans, Property Loans, and Home Loan takeover product
|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%|
|Property Power / Property Power Loans with Enhancement|
|Loans offered to Small and Medium enterprise under Priority Sector Guidelines||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 property loans - Non-priority sector lending||TBLR-3M + 4.24% to TBLR-3M + 4.99%||9.34% to 10.09%|
|All other loans with Home Credit - Non-priority sector||TBLR-3M + 4.49% to TBLR-3M + 5.24%||9.59% to 10.34%|
|Home Loan Takeover with enhancement and Home Loan Top-Up|
|Loans with cash-out portion within 100% of the home loan amount||TBLR-3M + 3.44% to TBLR-3M + 4.19%||8.54% to 9.29%|
The loan pricing depends on the following factors:
The purpose of availing a Citibank Loan Against Property is to satisfy individual needs and emergency business requirements. The personal loan does the same, as well. However, both these loans are different in many aspects.
Citibank Loan Against Property is a unique facility because it is similar to both the personal loan and the home loan. Purpose-wise, it is identical to the personal loan. Security-wise, the Loan Against Property is equal to a home loan. Nevertheless, there are individual distinctions between the two.
ICICI bank loan against property up to Rs. 5 Crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
The Treasury Bill is a short-term (up to one year) debt instrument issued by the Government of India. The T-Bill rate is the interest rate offered by the Government on these securities.
Financial Benchmarks India Pvt Limited announces the T-Bill benchmark rates every day. The rates fluctuate depending on market forces. Citibank refers to the 3M-T-Bill rate as the base for determining the rate of interest on its loans against property. It is an external benchmark rate that depends on market forces. Hence, it is a market-linked rate.
Citibank announces its reference rate between the 12th and the 15th of every month. The reference rate is the 3M-T-Bill rate.
Citibank adds its spread on the T-Bill rate depending on the following factors:
The T-Bill rate is an independent external benchmark rate.
Though FBIL announces the T-Bill rate daily, Citibank refers to the T-Bill rate announced between the 12th and the 15th of the month. It resets the T-Bill rate every three months beginning from March 01 every year. The reference rate accounts for the upward and downward swings in the T-Bill rates announced by FBIL.
Yes, Citibank announces its TBLR somewhere between the 12th and the 15th of the month. The TBLR should be rounded off to the nearest 0.05 basis points before adding the requisite spread. The borrower can also refer to the FBIL website to know the daily T-Bill rate. Citibank refers to the 3M-T-Bill rate.
Yes, the existing borrowers can switch over to the TBLR after executing a supplementary agreement with the bank. Citibank will match the customer profile of the borrower with similarly-placed borrowers in the TBLR structure before determining the individual rates.
Both the TBLR and RLLR are external benchmark-related interest rates. FBIL refers to various rates before determining the T-Bill rate. One of these reference rates is the repo rate announced by RBI. The RBI announces the repo rates at regular intervals, whereas FBIL announces the T-Bill rate daily. Both the TBLR and RLLR are equally effective as market-linked external benchmark rates.
No, Citibank refers to the T-Bill rate announced by FBIL. It does not offer any alternative benchmark rate like repo rate, and so on.
No, the TBLR does not apply to loans with fixed rates of interest. Citibank offers floating rates of interest on its home loans and loans against property. These interest rates are linked to the TBLR.
Yes, Citibank extends this facility of TBLR to non-resident Indian borrowers, as well.