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Citi India has launched India's first home loan linked to the 3-month Government of India Treasury Bill benchmark rate. This will give home buyers the opportunity to take part in a floating rate benchmarked to a publicly available external reference rate, which is driven by market forces, and in line with international markets such as the US, Singapore, Taiwan and Hong Kong.
The T-Bill-linked home loan is based on the 3-month T-Bill rates published on the 12th of each month by Financial Benchmarks India Pvt Ltd (FBIL) and is available to all new and existing home loan customers. FBIL is recognised by the RBI as an independent Benchmark administrator.
Shinjini Kumar, Country Business Manager, Global Consumer Banking, Citi India, said that the Treasury Bill-linked home loan is in line with the global best practices, local regulatory expectations on the use of external benchmarks and also offers a better client experience.
"Citi is proud to partner its customers looking for a mortgage product that is simple and transparent. We look forward to continuing to participate in this growing segment of borrowers", she said. The interest rate resets of the T-Bill linked home loan are on March 1, June 1, September 1 and December 1.
The T-Bill rate will be published every month on Citibank India's website. Customers may also access the T-Bill rate on FBIL website.
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