Frequently Asked Questions (FAQs)
How is interest charged? When is interest charged on the Loan Account?
Interest on your Loan Account is calculated based on daily balance outstanding and charged to your Loan Account on a monthly basis.
Does Citibank offer both variable and fixed Interest rates?
Citibank offers loans only on Variable Interest rates. Please note that we do not offer loans on Fixed Interest Rates.
Mentioned below are the answers to some important questions that you might have about Variable Interest Rates.
How does the variable interest rate work?
The Variable interest rate is linked to a reference rate and changes with the change in the reference rate. Citibank currently offers 2 kinds of reference rates you can opt to link your loan to:
- Marginal cost of funds based Lending Rate (MCLR)
- Treasury Bill Benchmark linked Lending Rate (TBLR)
Every time there is a change in the MCLR or TBLR, the Home Loan rate linked to that rate is also reset accordingly. This reset happens automatically at pre-set intervals without you having to call or write to us.
What is the significance of the Reference Rate?
Lending institutions offer Variable Rate loans wherein interest is linked to a reference rate. Interest on your loan will change only if the reference rate the loan is linked to is changed.
As mentioned above, at present Citibank offers 2 reference rates to which your loan can be linked to - Marginal cost of funds based Lending Rate (MCLR) or Treasury Bill Benchmark linked Lending Rate (TBLR).
How do I know what the MCLR or TBLR is at the time of sanctioning of my loan?
Please click here to know the latest MCLR.
Will my EMI change each time my interest rate changes? If yes, do I need to give new repayment instructions?
As a result of changes in interest rates, the EMI or the tenor of your loan could undergo a change. Citibank, at its sole discretion, may require you to submit revised EMIs or allow you to continue with the same EMI, which could result in an extension / reduction in the tenor of your loan.
*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.
Mortgage Loans are available only in Delhi-NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Jaipur, Coimbatore, Ahmedabad, Chandigarh & Kolkata.
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