Standard Chartered Home Loan vs Citibank Home Loan – Which is Better?

1. Standard Chartered Home Loan vs Citibank Home Loan – Which is Better?

2. Even though the home loan segment is witnessing a cut-throat competition amongst the homegrown players, there’s another battle going on amongst foreign banks to capture the market share. These banks include Standard Chartered Bank, Citibank, etc. Both the banks may not have mass customers but do have a strong base of High Net Worth Individuals (HNIs). These set of customers are contributing handsomely to the balance sheet of Citibank and Standard Chartered Bank. Let’s chalk out Standard Chartered Home Loan details and compare the same with that of Citibank.

3. Standard Chartered Home Loan Details Standard Chartered Bank offers customized home loans at varied interest rates starting from 9.41% per annum. It can extend loans up to ₹35 crores to help you buy a home. You can get a maximum of 25 years to repay the loan. The balance transfer facility and 2% cashback on home loans only add to the glitter. The cashback would be credited to the Standard Chartered savings account.

4. Fees & Charges Applicable to Standard Chartered Home Loan The loan comes with a processing fee at 1% of the sanctioned amount. This is a one-time fee that you need to pay upfront to the lender. As the home loan typically runs long, you could generate surplus over time to finish the loan before the scheduled close or you can part pay a portion of the loan outstanding. This is called as prepayment that does not come with any fee if the loan is granted on a floating basis which invariably remains the case. In the case of a fixed loan, there are no charges for part payment less than 25% of the principal outstanding in a calendar year. However, if the part payment is more than 25% of the principal outstanding in a calendar year, you will need to pay charges at 2.5% of the amount paid.

5. Citibank Home Loan Details Citibank disburses home loans up to ₹10 crores for a maximum of 25 years. The loan amount can be disbursed at up to 80% of the property value. Currently, the rates can be anywhere between 9%-9.85% per annum. The processing fee amounts to ₹5,000. However, there are no charges on pre-closure and partial prepayment.

6. How to Assess Whose Home Loan Offer is Better? Now that you know the basic details, it’s time to evaluate whose loan offer is better for you. Checking the home loan EMI calculator would help you make the right choice. The calculator sums up the repayment history in a few seconds. You just find the calculator online, enter the loan amount, interest rate and tenure to figure out the equated monthly installments or EMIs applicable to the loan. The EMIs constitute both interest and principal that you need to repay every month towards the loan. With that, you also get to know the interest liability ahead of you. This is where you need to check whether Standard Chartered Home Loan results in lesser interest than that of Citibank or vice-versa. No prizes for guessing, you should choose the one that lowers your interest liability considerably.