CitiFinancial, the consumer finance division of Citibank Romania SA, is launching the home equity loan, said the bank in a statement.
The loan tenor is of minimum 5 years and maximum 20 years, and the amount borrowed can range from RON 15,000 up to RON 225,000. The new product addresses clients who are interested in a large personal needs loan with flexible eligibilty and repayment conditions.
”The launch of Home Equity, together with the fact that we doubled our network last year, and we’ll reach a total of 66 units all over the country by end of February 2007, are important steps that CitiFinancial is taking towards attaining an even closer relationship with our customers, and satisfying their financial needs,” says John Hays, Country Business Manager for CitiFinancial Romania.
The eligibility conditions for contracting Home Equity are extremely flexibile making the loan available to a large range of clients. The Home Equity applicant should be aged between 23 and 70 years, and have a monthly family income of at least RON 750. The loan requires collateral of a first rank mortgage on a real estate property of the applicant.
CitiFinancial provides the real estate insurance for the loan for free, as bonus for applicants.
The loan is repaid in monthly installments. The monthly installment should not exceed 30% of the family’s monthly net income minus the household financial liabilities. The interest is variable and it is calculated based on the 6-month quotation of the BUBOR index rate. Depending on the risk assessment result of each client, the interest rate can comprise, beside BUBOR’s value, 0 – 599 bps.
There is a 2.5% commission, applied to the credit loan amount, for processing the application, which is included in the installment and is paid monthly. The monthly commission for managing the account is of 0.15% of the credit amount.
In the pilot stage, the product will be first offered in nine branches in Bucharest and Ploiesti. Home Equity will be available in all CitiFinancial branches and sales offices by the end of the first half of 2007.
