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Hassle free home loans from Citibank
BY OUR CORRESPONDENT
13 June, 2005: Home is a dream. To obtain a home loan without the umpteen unseen hassles was considered impossible some time back. But with a country bidding farewell to regulated economy and a slew of banking companies plunging into the housing loan segment, the roles changed. Customers became the most sought-after commodity! And banks threw unwarranted caution to the winds, going out of the way to woo the prized customer.
Hassle free loans without surprises later is Citibank’s mantra. The bank offers loans for
loans for built property as well as under construction property.
Citibank has two schemes: Home Credit and Home Loans.
Home Credit
If you opt for Citibank home credit scheme, the savings surplus in your bank account earns the interest on your home loan. Home Credit works like a normal account. But the advantage is that the money in your account is adjusted with the principal loan amount, which effectively means that your loan principal as well as interest gets cut.
So you save money on interest you pay. Also the loan amount gets finished earlier than the loan period. If you have access to the net the home credit simulator on the Citibank web site would give you a clear idea of the amount you save on interest costs. The online application facility enables you to get prior approval for the home loan.
Citibank home loans are available in Mumbai, Pune, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Coimbatore and Vadodara.
The loan can be availed to fund an already built property, property under construction a polt or even a self-constructed property. Both salaried employees as well as self-employed professionals are eligible to avail Citibank Home Credit loan. For salaried employees, the minimum annual income should be at least a lakh per month. Theperson availing loan should be at least 25 years of age. When the loan matures, the maximum age should be 58 or your retirement age, which ever is higher. The bank also insists on at least two years of experience.
For the self-employed persons who wish to avail the loan, the gross annual income should be at least Rs 85,000. You should be minimum 25 years of age or maximum of 65 years. The self-employed person’s firm should be operational for at least 3 years and making cash profits for at least 2 years. IT returns of 2 years should also be filed.
The bank’s minimum loan amount is Rs 2.1 lakh and maximum is a crore. The monthly installment on your borrowing should be within 60 per cent of your household income. The loan wizard on the Citibank web site helps you to calculate the amount you are eligible for if furnish simple details.
The equated monthly installment is calculated on the basis of variable interest rate. For example for an amount of Rs one lakh in a tenure of five years, the EMI would be Rs 2,064 at an interest rate of 8.75% . Again if you furnish simple details like
down payment you can make, gross monthly income and period of loan on the web site, the loon wizard
would calculate the EMI for you.
The minimum repayment period is one year and maximum tenure is 25 years. The tenure should be within the maximum age limit set. The bank does not insist on guarantors and the processing is speedy. No charges are set for pre-payments.
Home Loan
If you are a resident of Mumbai, Pune, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Coimbatore, Vadodara , Ahmedabad, Ludhiana, Chandigarh, Jaipur, Kochi, Vishakapatanam, Lucknow or Indore, Citiban Home loans can be availed.
Loans are sanctioned for an already built property, property under construction or self-constructed property. Salaried class as well as the self-employed are eligible. Salaried persons should have at least Rs 1,00,000 gross income per annum and should be at least 23 years of age to be eligible for the loan. The maximum age should be 65 or retirement age, when the loan matures. The person should be employed for at least 2 years.
For self-employed gross annual income should be Rs 85,000. The age limits are the same as salaried class. The firm run by you should be in operation for a minimum 3 years and making cash profits the last 2 years. IT returns should have been filed for the last two years. The minimum loan amount is Rs2.1 lakh but the maximum is Rs 2 crore.
The loan amount should be less than 85% of the value of the property and the monthly installment shouldn’t exceed 60 per cent of your gross household income.
The monthly installment is calculated at the variable interest rate, which means each time there is a change in the Citibank Mortgage Prime Lending Rate, your loan amount varies. The present rate is 9.5%. For a loan of a lakh in a set tenure of 5 years, the EMI at the rate of Rs 8.25% would be Rupees 2040.
The minimum loan period is one year and the maximum period is 25 years, subject to the maximum specified age limit. Those who have chances to opt for repayment should avail the Home Credit scheme. The bank doesn’t insist on guarantors for the Home Loan scheme also.Simple documentation and speedy processing are the added advantages of Citibank Home Loans. The loan can be applied online.
Citibank offers the option to refinance existing loans and to borrow against property.
The money borrowed against property can be used for any purpose. Minimum Gross annual income for this is set at Rs 1,25,000 and minimum age is 23. At least 3 years of continuous work experience is necessary for the applicant. For firms, the minimum gross annual income is set at Rs 1,50,000. Firm should be operational for 3 years and IT returns should be filed for the lat 2 years. Amount that can be availed ranges from Rs 2.1 lakh to Rs 1 crore. Loans should not exceed 60% of market value for residential properties and 35% for commercial properties. Monthly installments should not exceed 50% of your gross monthly household income. The repayment period is one to 10 years.
BY OUR CORRESPONDENT
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