MUMBAI: Citibank on Monday announced the launch of CitiHome One, a one of a kind mortgage product that will enable customers to get a home loan facility as a combination of a conventional term loan and a credit line.

According to an official release issued by Citibank on Monday, with CitiHome One, customers will enjoy a dual advantage of interest savings on their home loans by utilising surplus funds and the flexibility to structure repayments as per their convenience. Subject to an overall limit, customers can self-determine the amount they wish to take as credit line with the balance being structured as a term loan. Customers of the new CitiHome One loan account will be automatically enrolled into a new feature-rich current account facility.

This account, where the credit line is set, will serve as an umbrella account and will allow customers to consolidate all their banking requirements into a single CitiHome One Account relationship, beginning with financing the purchase of their dream home to deploying surplus funds for saving interest on the home loan, drawing down from this available credit line to finance all future needs, and managing their wealth whilst enjoying the entire bouquet of premium banking privileges. Citibank also unveiled the CitiHome One variant for loans against property.

CitiHome One customers can take a maximum of Rs 5 crore under the loan facility. The credit line can extend up to 30 per cent of the total facility or Rs 1 crore, whichever is lower. The loan will be subject to a variable interest rate linked to the Citibank Mortgage Prime Lending Rate . The term loan component has standard loan tenure of up to 20 years, while the credit line is subject to a maximum tenure of 10 years, post which customers can either make a one-time repayment, or convert the credit line into a term loan and pay back through EMIs.

Unveiling the new programme, N Rajashekaran, Country Business Manager, Global Consumer Group, Citi India, said, "Purchasing a home is a major life event and a mortgage is one of the largest financial commitments an individual makes. CitiHome One is designed to place customers’ firmly in command of their finances and make home-buying a win-win for them. This new programme will also serve as an excellent gateway for customers to experience the entire bouquet of our products and services thereby deepening our relationship with them and strengthening our efforts towards providing complete banking solutions for our customers."

Providing details of CitiHome One Loan, Ashish Mehrotra, Head–Consumer Assets, Citibank India said, "We are very pleased to launch the market’s first Universal home loan product. By making our customers’ money work harder for them, this research-backed product should become the preferred alternative to the conventional home loan. We are confident that CitiHome One will find resonance amongst our customers and reinforce our commitment of driving success for them."