Home Loan Disbursement

In case disbursals have to be made to the developer, Citibank N.A. will disburse the loan in tranches based on the demand note received from the developer. The demand note shall be forwarded to Citibank well in advance to avoid any delay in disbursal.

Can developer disbursal be delayed?

Yes, developer disbursals can be delayed for any of the following reasons:

• The customer’s share of the installment due (margin money) has not been received by the developer. Post paying the agreed margin money, you need to submit to the bank the relevant payment receipt from the builder and the corresponding entry in your bank statement, for Citibank to assess
• Your repayment record has not been regular
• The construction progress of the project has not been satisfactory
• You specifically request us to stop making further disbursals to the developer
• The demand note has not been forwarded to Citibank in time

If the disbursal to the developer is delayed, who will bear the delayed payment charges?

If the disbursal to the developer is delayed on account of reasons mentioned above, then the onus of the delayed/penal interest charged by the developer will be borne by the customer.

Can I inform Citibank not to make disbursals to the developer?

Yes, please send us a letter stating why you do not wish Citibank to make disbursals to the developer at least 30 days prior to disbursal date and we will hold back the disbursals as per your request. However, all penal charges for delayed disbursals, which the developer may charge, will have to be borne by the customer.

What should I do when I receive a demand notice from the developer?

Please forward the demand notice received from the developer to Citibank to enable timely payment of the installment due. The demand notice can be forwarded to your Relationship Manager or Disbursal Manager.

What if there is a change in the developer disbursal schedule?

Please inform Citibank of any change in the developer disbursal schedule so that disbursals can be made correctly and delayed/penal interest, avoided.

The intimation shall be accompanied with supporting communication by the builder.

What happens at the time of possession?

Prior to taking possession, you need to take a "No Objection Certificate" (NOC) from Citibank. Citibank issues this “No Objection Certificate” only if the following conditions are met:

• Your repayment record has been satisfactory and regular.
• The developer satisfactorily completes the project.
• All the documents pertaining to your property have been deposited with Citibank.

In case you have been paying only interest, then you need to submit a revised repayment instruction towards your EMI, after which a “No Objection Certificate” will be issued.

Disbursal for Ready Property?

In such cases, the disbursals are made to the seller if the borrower has already made the full payment to the seller within last 6 months. In exceptional cases and at Citibank's discretion, the cheque can be made favoring the borrower, if the borrower has already made the full payment to the seller within the last 6 months.

Disbursals of the Property Power Loan and Home Loan Enhancements?

The disbursal of the Property Power Loan and Home Loan Enhancement / Top-up is made directly to the borrower after the borrower submits all requisite property documents to Citibank.