Citibank recently launched CitiHome One, a unique universal mortgage product, that would enable customers to get a home-loan as a combination of a conventional term-loan and credit line. With the launch of this new scheme, customers will be able to enjoy the dual advantage of interest savings on their home-loans by utilising surplus funds as well as the flexibility to structure repayments as per their convenience.
According to a statement issued by the bank, customers can self-determine the amount they wish to take as credit line with the balance being structured as a term-loan, subject to an overall limit. Another exciting feature of the scheme is that all customers would be automatically enrolled into a new feature-rich current account facility that will serve as an umbrella account and will allow customers to consolidate all their banking requirements into a single CitiHome One Account relationship.
Currently, customers of this product can take a maximum of Rs 5-crore under the loan facility and the credit line can extend upto 30 per cent of the total facility with an upper ceiling of Rs 1-crore.The interest rate would be variable and linked to the Citibank Mortgage Prime Lending Rate. Term loan & credit line has a max. tenure of 20 years and 10 years respectively.