Loan Against Property (LAP) is a secured loan that helps you fund your various financial needs. Almost every bank and non-banking financial company (NBFC) offers Loan Against Property. Choosing the best loan provider among many options is a cumbersome task.
Citibank, one of the most trustworthy banks in India offers attractive Loan Against Property facility to individuals so that they can fulfill their dreams without worrying about money.
If you want to know more about Citibank Loan Against Property, here are some most frequently asked questions about the product:
1. What is Citibank Loan Against Property and for which purpose can I use the loan amount?
The Citibank Loan Against Property is a loan facility that lets you mortgage your property to get funds to fulfill your financial needs. The loan amount can repaid at an affordable interest rate within a flexible tenure (of up to 20 years).
You can use this loan for:
- Purchasing machinery
- Closing an existing high-cost debt
- Education of your child
- Starting a new business
- Marriage
- Any other personal or business needs
2. What are the benefits of Citibank Loan Against Property?
Loan Against Property (LAP) has many exceptional features that make the whole process more reliable and more accessible to the public. Some of the unique features offered by the Citibank LAP include:
- Citibank provides loan against residential as well as commercial property.
- You can avail a loan amount anywhere between Rs. 5 Lakhs to up to Rs. 5 Crores depending on your Loan Against Property Eligibility.
- Citibank offers a flexible repayment tenure of up to 15 years.
- You can get a loan of up to 70% of the market value of your property.
3. How do I know if I am eligible to avail this loan?
You have to meet the following criteria to be eligible to apply for the Citibank Loan Against Property:
- You should be minimum 23 years of age at the time of applying for the loan.
- You must have a continuous work experience of minimum 3 years to apply for this loan if you are a salaried individual.
- If you are self-employed, your business must have incurred 2 years of cash profit.
- You can also bring in co-applicants such as your spouse, parent or male child to increase your chances of loan approval.
4. In which cities should my property be located to avail this loan?
You can avail Citibank LAP if your property (to be mortgaged) is in following cities:
Delhi NCR
· Mumabi
· Pune
· Chandigarh
· Jaipur
· Ahmedabad
· Bangalore
· Chennai
· Hyderabad
· Kolkata
· Surat
5. How can I repay my loan EMI?
You can repay your loan in equated monthly installments (EMIs) that include both the principal and interest components. Citibank offers a host of repayment options. You can pay your EMI through NACH (National Automated Clearing House) or Standing Instruction (SI) on your Citibank account.
6. How does a Home Credit help with your loan?
Citibank offers its customers the Home Credit option which lets them decide the interest rate that they want to pay for the loan. This is a unique option offered only by Citibank.
A Home Credit Account has to be set up to avail this option. It is a current account which is linked to your loan. A threshold amount is fixed beforehand. You can deposit your excess savings, annual bonuses in this account rather than keeping them idle or making partial prepayments on your loans. Whatever amount is deposited in excess is transferred to the loan account on a daily basis. This is also subject to the maximum of your outstanding loan amount. This system of daily transfer of money helps in reducing the interest being charged on your loan. However, this also does not stop you from withdrawing money from this Home Credit Account, like an overdraft line.
7. Can I get a top-up loan on my existing Loan Against Property?
Yes, you can get a top-up loan on your existing loan. However, this can happen after you have repaid 6 EMIs. It should be kept in mind that the final decision rests with the bank itself.
There were some of the most important questions that you must have the answers to before availing the Citibank Loan Against Property.