Citibank launches home loan product linked to an external benchmark

Citibank has launched a home loan product linked to an external benchmark. The development assumes significance in the light of the Reserve Bank of India (RBI) appointed Janak Raj Committee's recommendation last year that all banks should link their loans to an external benchmark. While Citi's new home loan is a very transparent product, customers opting for it also need to be prepared for frequent changes in their tenure or EMI.

Citibank's new home loan will be benchmarked to the three-month treasury-bill rate. The benchmark is called treasury-bill benchmark linked lending rate (TBLR). It will be provided by Financial Benchmarks