Home Loan Disbursement

What are the stages involved before home loan disbursement?

The home loan disbursement is preceded by several stages. Some of them are mentioned below:

  • Submission of the application form and required documents
  • Verification of documents
  • Property verification and legal checks
  • Confirmation of home loan sanction status

Once the above stages are completed, the loan will be disbursed.

Disbursal Requests

Disbursal is the most important aspect of your loan. We at Citibank strive hard to ensure that your disbursal is done as per your disbursal requests on a timely basis.

What should I do to get my disbursal draft?

You can initiate a disbursal request from your end through Citibank Online (CBOL) by logging in to our portal www.citibank.com/india. Alternatively, you can contact our CitiPhone Officers.

You can also place the disbursal request by sending “DISB” followed by your mortgage loan number to 52484.

In whose favour is the disbursal draft made?

Disbursal is done as follows:

Draft Favouring Type of Loan
Seller/ POA
  • Ready property loan
Main applicant
  • Property power loans
  • Top-up portion in case of a home loans and Property Power Top-up Loans
  • Developer Under Construction Loans
Other Banks/HFI
  • Takeover Loans (for takeover plus enhancement loans, enhancement will be made to the borrower only after all title documents are received form takeover institution)
Developer Disbursal

In case disbursals have to be made to the developer, Citibank N.A. will disburse the loan in tranches based on the demand note received from the developer. The demand note shall be forwarded to Citibank well in advance to avoid any delay in disbursal.

Can developer disbursal be delayed?

Yes, developer disbursals can be delayed for any of the following reasons:

  • The customer’s share of the installment due (margin money) has not been received by the developer. Post paying the agreed margin money, you need to submit to the bank the relevant payment receipt from the builder and the corresponding entry in your bank statement, for Citibank to assess
  • Your repayment record has not been regular
  • The construction progress of the project has not been satisfactory
  • You specifically request us to stop making further disbursals to the developer
  • The demand note has not been forwarded to Citibank in time

If the disbursal to the developer is delayed, who will bear the delayed payment charges?

If the disbursal to the developer is delayed on account of reasons mentioned above, then the onus of the delayed/penal interest charged by the developer will be borne by the customer.

Can I inform Citibank not to make disbursals to the developer?

Yes, please send us a letter stating why you do not wish Citibank to make disbursals to the developer at least 30 days prior to disbursal date and we will hold back the disbursals as per your request. However, all penal charges for delayed disbursals, which the developer may charge, will have to be borne by the customer.

What should I do when I receive a demand notice from the developer?

Please forward the demand notice received from the developer to Citibank to enable timely payment of the installment due. The demand notice can be forwarded to your Relationship Manager or Disbursal Manager.

What if there is a change in the developer disbursal schedule?

Please inform Citibank of any change in the developer disbursal schedule so that disbursals can be made correctly and delayed/penal interest, avoided.

The intimation shall be accompanied with supporting communication by the builder.

What happens at the time of possession?

Prior to taking possession, you need to take a "No Objection Certificate" (NOC) from Citibank. Citibank issues this “No Objection Certificate” only if the following conditions are met:

  • Your repayment record has been satisfactory and regular.
  • The developer satisfactorily completes the project.
  • All the documents pertaining to your property have been deposited with Citibank.

In case you have been paying only interest, then you need to submit a revised repayment instruction towards your EMI, after which a “No Objection Certificate” will be issued.

Disbursal for Ready Property?

In such cases, the disbursals are made to the seller if the borrower has already made the full payment to the seller within last 6 months. In exceptional cases and at Citibank's discretion, the cheque can be made favoring the borrower, if the borrower has already made the full payment to the seller within the last 6 months.

Disbursals of the Property Power Loan and Home Loan Enhancements?

The disbursal of the Property Power Loan and Home Loan Enhancement / Top-up is made directly to the borrower after the borrower submits all requisite property documents to Citibank.

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*Terms and conditions apply. All loans are at the sole discretion of Citibank N.A. Citibank reserves the right to ask for any additional documents from the applicant. Citibank reserves the right, at anytime, with prior notice to add / alter / modify / change or vary any of the Terms and conditions or to replace them, wholly or in part. Click here for Most Important Terms and conditions. Please refer to our Schedule of Charges.

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