Citizens Home Loan
Citizens Mortgage Loan (Loan Against Property)
Citizens Mortgage Loan (Personal Overdraft- a revolving credit facility)
Citizens Auto Loan-Private Vehicles
Citizens Auto Loan -Commercial Vehicle
Citizens Equipment Loan
Citizens Home Loan
1. What is the minimum loan amount?
The loan amount depends on your repayment capability and is restricted to a maximum of 80% of the purchase price of the land and/or building/apartment or cost of construction/extension/renovation as applicable. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history.
2. What are the loan tenure options?
You have the option of selecting a tenure you are comfortable with, ranging upto 25 years, provided the term does not extend beyond your reaching 65 years of age or retirement age, whichever is earlier.
3. What are the lending rates?
Lending rates on Citizens Home Loan varies with the change in market, at present the loans are available at following rate:
| Tenure |
Rate of Interest |
| 5 years |
14.00% |
| 10 years |
15.00% |
| 15 years |
16.00% |
| 20 years |
17.00% |
| 25 years |
17.50% |
4. How is the interest charged/calculated?
Interest is calculated on a monthly reducing balance basis.
5. Do I have to pay any additional charges?
A processing fee of 1% of the loan amount and mortgage fee of NPR 1,500/- is levied upfront.
6. What documents do I need to submit to avail a Home Loan?
Documents required as per our checklist, refer the Citizens Home Loan Section.
7. How do I approach Citizens Bank for a Home Loan?
You can approach us in any of the following ways
- write to us using the "Email Us" option
- You can just walk into any of our branches.
8. How much time will it take for my loan to be approved?
It takes at the maximum 4 working days for your loan to be sanctioned after you have submitted all the required documents.
9. Who can be the co-applicants for the loan?
You could include your spouse as a co-applicant for the loan and we shall include his/her income to enhance your loan amount. Further, in case there are any other co-owners they also need to be co-applicants.
10. Is a personal guarantor a must?
No, there is no personal guarantor required in most of the cases. However if the Bank feels that personal guarantee of someone will strengthen the proposal, the bank may ask for it.
11. What security/collateral do I have to provide?
Typically the security for the loan is a first and exclusive charge of the property to be financed, by way of mortgage over the property and/or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.
12. How do I repay the loan?
The loan will be repaid in Equated Monthly Installment (EMI) on the 20th of every English Calendar commencing from the subsequent month of initial drawdown or completion of moratorium period as the case may be.
13. Do I need to open an account with Citizens Bank for availing and/ or servicing the loan?
We will ask you to open an account with us to deposit your EMI with us. If you already have a savings account with us we will obtain a debit authority from you for servicing of the EMI. Moreover we also encourage you to avail of a host of other value added services, which are complementary to the loan.
14. What are the stages involved in taking a loan?
There are three main stages -
- Application - Whereby you submit a completely filled in application with all necessary documents.
- Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities.
- Disbursement - Whereby the loan amount is transferred upon mortgage of the property and completion of insurance over the property.
15. What are the various types of loans that Citizens Bank Home Loans provides?
- Citizens Home Loan for purchase of a plot of land and/or readymade building.
- Citizens Home Loan for construction of a building on already owned land.
- Citizens Home Loan for purchase of a bunglow/apartment constructed by builders/developers.
- Citizens Home Loan for renovation/extension of a building.
- Citizens Home Loan for refinance/takeover.
16. What is a Monthly Reducing balance?
An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.
17. When can I apply for a loan?
Your search for the perfect home loan ends here at Citizens Home Loan, even before you have found the perfect property. The moment you decide to buy a home, you can put in your application for a home loan. Yes, you can apply for a home loan even before you have selected the property. The loan amount would be sanctioned or approved for you, based on your repayment capability.
18. Can I get a loan for commercial property, like offices etc.?
Citizens Home Loan is for individuals only. A separate unit deals with loan for commercial property where the criteria are defined accordingly.
19. What is an amortization schedule?
An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan.
Citizens Mortgage Loan (Loan Against Property)
1. Why Should I consider Citizens Bank for Loan Against Property?
- Flexible repayment terms
- Personalized Service
- Simplified Documentation
2. What are the eligibility criteria to get a Citizens Mortgage Loan?
You are eligible for a Citizens Mortgage Loan, if you are
- A minimum age of 18 years
- Employed or self-employed with a regular income
- Owner of a self-occupied property
3. How much loan can I get?
- You can get a loan of upto NPR 5 million
- You can get upto 80% of the Bank's valuator's distress value.
- Your repayment capacity as determined by the Citizens Bank, taking into account your age, income, qualification, number of dependents, assets, liabilities, stability/ continuity of your employment/ business and the co-applicant's income.
4. Can I take a Citizens Mortgage Loan against another property if I have any other loan with Citizens Bank?
Yes, you can take a loan against any other property. To know more about loans against property, please contact any of our branches.
5. How do I approach Citizens Bank for a Citizens Mortgage Loan?
You can approach us in any of the following ways
- Write to us using the "Email Us" option
- You can just walk into any of our branches.
6. Over how many years can I repay the loan?
The maximum tenure of loan will be 10 years. The term does not extend beyond your retirement age, or your reaching 65 years whichever is earlier.
7. How would the value of my property be determined?
The value of your property would be determined through a valuation conducted by the authorized valuator of the Bank.
8. How do I repay the loan?
The loan is repaid in Equated Monthly Installments (EMI). The loan can be prepaid at any point of time.
9. Do I need to open an account with Citizens Bank for availing and/ or servicing the loan?
We will ask you to open an account with us to deposit your EMI with us. If you already have a savings account with us we will obtain a debit authority from you for servicing of the EMI. Moreover we also encourage you to avail of a host of other value added services, which are complementary to the loan.
10. What are the stages involved in taking a loan?
There are three main stages -
- Application - Whereby you submit a completely filled in application with all necessary documents.
- Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities.
- Disbursement - Whereby the loan amount is transferred upon completion of mortgage of the property in bank's favor.
11. What is a Monthly Reducing balance?
An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.
12. When will the loan be disbursed?
Your loan will be disbursed on:
- Submission of the completed application form with a copy of all the documents.
- Legal and technical clearance of the property
- Sanction of the loan amount
- Request for disbursal
- Mortgage of the property in Bank's favor along with insurance of the property.
13. What is an amortization schedule?
An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan.
14. How can I pre pay the loan?
The Loan can be prepaid by approaching our Bank, we will give settle the loan outstanding wit us upon receipt of the fund and we will release the mortgage over the property against which the loan is taken.
15. What are the charges on prepayment?
The charges will be as per the rates mentioned in your agreement.
Citizens Mortgage Loan (Personal Overdraft - a revolving credit facility)
1. What is a revolving credit facility?
Every accountholder is entitled to withdraw funds from his mortgage overdraft account upto the limit sanctioned in the account. This limit will get reduced each time the accountholder withdraws from the account to the extent of the funds withdrawn either by cheque or cash. The limit will increase on re-payment of the funds withdrawn. Therefore this credit line in the account will keep revolving depending on withdrawals and payments
2. What are the advantages of Citizens Mortgage Loan (Personal Overdraft)?
The flexibility of withdrawing money as and when the customer needs it.
- The flexibility to repay in variable amounts, to minimise the interest liability of the customer.
- The interest is charged on a daily reducing balance.
- The interest is charged on the use of the credit line only - the interest is not charged on the total sanctioned overdraft amount (limit), but only on the amount of money used by the customer.
E.g. if out of the total sanctioned overdraft limit of NPR 1,000,000, a customer withdraws NPR 250,000 for 14 days, the Bank charges interest from the customer for 14 days on NPR 250,000 only.
3. Who is eligible for Citizens Mortgage Loan (Personal Overdraft)?
Salaried and self employed individuals. Self-employed individuals include sole Proprietors, Partners in Partnership Firms, Professional etc.
4. What is the USP of the product?
- Interest charged only on utilization, i.e. amount utilized and time period utilized.
- Roaming current account with nil balance requirement.
5. What are the Citizens Mortgage Loan (Personal Overdraft) product features?
Revolving Credit Facility: Only product which offers a clean revolving credit facility in a Banking account based on any one or more of the following
- Income base (Based on income of the applicant)
- Credit behaviour (past repayment track records with approved financiers)
Cash Advance: This product provides the customer overdraft facility through Citizens Bank and SCT Network ATMs across the country. The entire credit limit can be withdrawn as a Cash Advance. Cash can also be withdrawn through the Bank's branches across the country.
Repayment: Customer will have the flexibility of paying the entire outstanding lump sum at any point of time without any charges.
Interest: Interest to be paid by the customer on debit outstanding: The interest to be paid by the customer is calculated only on outstanding debit balance in the mortgage overdraft account on a daily basis and charged to the customer on a quarterly basis.
6. Under the Citizens Mortgage Loan (Personal OD) scheme, what is the Loan to Value ratio against the property for setting up the limit?
The customer can get a limit of upto 80% of the valuation of the property depending on the income.
7. What is the tenure for the Citizens Mortgage Loan (Personal OD) facility?
The Personal OD facility is given for a period of one year and can be renewed at the discretion of the Bank based on the utilization and track record.
8. What is the payment cycle?
Interest on the account is payable at the end of Asad, Aswin, Poush and Chaitra and at the time of final payment of the principal.
9. How is the property, against which the overdraft limit set up, valuated?
Valuation of the property is done at the request of the customer by the authorized valuator of the Bank. We have a panel of authorized valuators and customers can choose any one from the panel.
10. Are there any restrictions on usage of the Citizens Mortgage Loan (Personal OD) limits?
The customer can use the funds for any personal or business expenses.
11. Will there be any charges if Citizens Mortgage Loan (Personal OD) is not used?
No - there are no charges if the facility is not used.
12.Is there any pre payment charge under Citizens Mortgage Loan (Personal OD)?
No, there is no pre payment charge. The customer is free to close the Citizens Mortgage Loan (Personal OD) account whenever he wants to, by requesting the Bank to do so in writing, and along with the same surrendering the unutilized chequebook and Debit Card and making payment of the entire outstanding.
13. Can the accountholder exhaust his / her entire credit limit in one shot?
Yes, the accountholder can utilize the entire credit limit. However he / she will not have any available credit limit to withdraw in emergency situations, until outstanding is repaid.
Citizens Auto Loan - Private Vehicles
1. What are the loan tenure options?
The tenure of the loan could range from one to eight years for new cars and from one to five years for used cars (not exceeding eight years at the time of loan maturity)
2.What are the lending rates?
The lending rates vary on the basis of discounts, which are offered by the dealers. Citizens Bank has a tie-up with most of the authorized dealers and our sales team will help you negotiate the best deal on your car loan. Refer our Interest Rate section.
3. How is the interest charged/calculated?
Interest is calculated on a monthly reducing balance basis.
4. Do I have to pay any additional charges?
Besides interest rate the Bank will charge 1% of the loan amount as the processing fee.
5.How do I approach Citizens Bank for Citizens Auto Loan?
You can approach us in any of the following ways
- Write to us using the "Email Us" option
- You can just walk into any of our branches.
6. How much time will it take for my loan to be approved?
The loans are generally approved within 48 hours (2 days) of submission of complete documentation.
7. Who can be the co-applicants for the loan?
Your spouse or any member of undivided family member can be a co-applicant.
8. Is a personal guarantor a must?
No, a personal guarantor is not a must. The Bank may ask for a guarantor in some cases.
9. What security/collateral do I have to provide?
No additional security/collateral needs to be provided, apart from the vehicle against which the loan is granted, the ownership of the vehicle will be in the joint name of the Bank and the Borrower.
10. If I do not meet all the criteria for the loan, can I still avail of a loan?
Yes, it is possible for you to avail of a loan even if you do not meet all the criteria, at the discretion of the Bank.
You can approach us in any of the following ways
- Write to us using the "Email Us" option
- You can just walk into any of our branches
11. How do I repay the loan?
The loan can repaid on Equated Monthly Installment basis by depositing the amount in the current account with us. Alternately, if you have a savings account with the Bank, you can issue a direct debit authority for the repayment.
12. Can I prepay my loan?
Citizens auto Loan can be prepaid at any point of time with a levy of charges as communicated at the time of disbursement.
13. What is a Monthly Reducing Balance?
In the case of monthly reducing balance method, the principal gets reduced at the end of every month and the interest is calculated on the outstanding principal at the end of the month.
14. Do I need to open an account with Citizens Bank for availing and/ or servicing the loan?
We will ask you to open a current account for depositing the EMI. If yopu already have a saving account with us we shall obtain a debit authority from you for repayment of the EMI. Moreover we also encourage you to avail off a host of other value added services, which are complementary to the loan.
15. What are the stages involved in availing a loan?
The stages involved are:
- Application
- Processing
- Documentation
- Sanctioning of the loan
- Disbursement upon completion of transfer of ownership of the vehicle.
16. Does Citizens Bank have a loan for the car I want?
Citizens Bank car loans are available for almost all passenger cars - new as well as used.
17. If I am not able to furnish my income documents is there a special scheme for persons like me?
Yes, Citizens Bank has tailor made schemes for persons like you. We offer funding without the income proof upon confirmation of the income source by the bank's official.
18. Can I avail of a loan on my existing car?
Yes, we do offer loans on existing cars, provided the cars are un encumbered.
Citizens Auto Loan - Commercial Vehicle
1. What are the loan tenure options?
The maximum loan tenure option we offer is upto 5 years at the time of loan maturity.
2. How is the interest charged/calculated?
Interest is charged on reducing monthly balance.
3. Do I have to pay any additional charges?
Processing fee of 1% of the loan amount will be charged upfront.
4. What documents do I need to submit to avail a Commercial Vehicle Loan?
To avail a Commercial Vehicle Loan you will have to submit the following documents:
- Proof of Address e.g. Citizenship Certificate, Passport.
- Proof of Experience in the relevant area
- Track Record of past loans if availed
- Bank Statement
- Additional documents like the Financial statements for the last two years
5. How do I approach Citizens Bank for a Commercial Vehicle Loan?
You can approach us in any of the following ways:
- Write to us using the "Email Us" option
- You can just walk into any of our branches.
6. How much time will it take for my loan to be approved?
The loans are generally approved within 24 to 48 hours of submission of complete documents.
7. Who can be the co-applicants for the loan?
You can have the following as your co-applicants depending upon your status:
- Members of the undivided family
- Business associates
8. Is a personal guarantor a must?
Based on your profile and credit strengths the requirement can be waived, however in other cases you may be required to provide a personal guarantor.
9. What security/collateral do I have to provide?
No additional collateral required other than the vehicle on which the funding is extended.
10. If I do not meet all the criteria for the loan, can I still avail of a loan?
Yes you can, your application will be considered based on the credit strength of your co-applicant Approval will be at the sole discretion of the Bank.
11. Do I need to open an account with Citizens Bank for availing and/ or servicing the loan?
We will ask you to open an account with us to deposit your EMI with us. If you already have a savings account with us we will obtain a debit authority from you for servicing of the EMI. Moreover we also encourage you to avail of a host of other value added services, which are complementary to the loan.
12. What are the stages involved in taking a loan?
The various stages involved are:
- Application
- Discussion on specific requirements
- Evaluation and Approval
- Documentation
- Completion of formalities and disbursement upon transfer of ownership of the vehicle in the Bank's name.
Citizens Equipment Loan
1. What are the loan tenure options?
The tenure of the loan can range from a period of one to five years, however the same will be decided based on your profile and credit strengths.
2. How is the interest charged/calculated?
Interest can be charged in any of the following ways, as opted by you:
- Equated monthly instalments with flat rate of interest
- Structured monthly instalments with interest on reducing balance method.
We can also structure the repayments based on your business needs.
3. What are the types of equipments that will be financed?
We finance all types of new construction and material handling equipments and medical equipments.
4. What is the margin that I need to pay for availing a loan?
You need to pay a minimum of 25% of the cost of the equipment as your margin, however the margin amount varies depending upon your profile and credit strengths.
5. Can I apply for loan for purchase of a used equipment / existing equipment being sold by the owner of the equipment?
Yes, we will extend loan for purchase of used equipment / existing equipment being sold by the owner of the equipment provided the same meets the norms of the Bank.
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