Citibank offers home loans from 6.75%


Citibank has joined the mortgage rate war by offering home loans starting from 6.75%, which is lower than what some
of the leading home finance companies and banks are offering. Citibank has also waived processing fees on home loans up to
December 31, 2020.

Unlike other lenders that have linked their home loans to the Reserve Bank of India’s repo rate, Citi’s are linked to the yield on
the 91-day treasury bill. Since the RBI made it mandatory to use external benchmarks, the treasury bill has been more
effective in transmitting rates. While the RBI’s repo has fallen 115 basis points (100bps = 1 percentage point) from 5.15% to 4%,
the treasury bill-linked rate has fallen from 5.12% to 3.16% — a decline of 196bps.

“Citi was the first to launch a market-linked home loan rate in 2018. Those customers who opted to avail the 3-month treasury
bill rate-linked loan have benefited significantly from the benchmark rate,” said Rohit Ranjan, head of secured lending at
Citibank India. 

The flip side is that the transmission is more effective even when rates rise.

Citi announced its home loan rates as part of its festival season offers, which include double the reward points for all debit card
customers and special rates on loan products. 

“We are prioritising offers for products and services that we have found are of most relevance to our customers and are also giving them special rates to support their aspirations. 

Customers are also starting to take time off to spend time with their families and so we have lined up some exciting domestic travel and stay options,” said Citi India CEO Ashu Khullar.

In other special rates, the bank is offering personal loans at below 10%. 11/16/2020 Citi offers home loans from 6.75% – Times of India.





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