In your particular case, and within same budget, my vote would be for Honda City.
Members have already shared the Pros and Cons of both, however, only thing which does not favour XLI is; it would be an abused car when compared to City, provided budget, model year, and other conditions, etc. are all kept same.
If you could source an unabused Corolla, then it would be better than City IMO, but then, you will have to compomise on budget, model year, etc.