Citibank Personal Loan Interest Rates

*Note: For the EMI calculation, it is assumed that a loan amount of Rs.1 lakh has been borrowed for a term of 5 years at an interest of 10.99%, with a processing fee of 3%.

From renovating your home and going on a vacation abroad to buying gadgets and planning a wedding, personal loans offered by Citibank can help you fulfil your dreams. Citibank personal loans can be available within 48 hours if the customer submits the necessary documents. Customers can acquire a personal loan by simple documentation and hassle-free process with minimal documentation. You can choose a loan tenure from 12 months to 60 months. Customers do not have to provide any guarantors to avail of personal loans offered by Citibank.

Citibank offers personal loans at a fixed rate of interest of 13.99%. CAT A corporate employees, CAT B corporate employees and Self-employed applicants offer interest rates of 13.75% - 15%, 14.50% - 15.75% and 15.25% - 17.00% respectively. Special offer for Citibank salary account holders applying for personal loans. Citibank will approve the loan in four hours sans physical application for loan decisioning. Citibank offers a flexible repayment options ranging from 12 to 60 months. Citibank offers personal loan at a fixed rate of interest of 13.99% (EMIs will remain throughout the loan tenure).

Factors Affecting Your Citibank Personal Loan Interest Rates

• Loan tenure: The interest rate offered by Citibank depends upon the loan tenure chosen by customers. If the customer opts for a short loan tenure, the bank is most likely to charge a higher interest rate. That said, keep in mind that the overall interest payable will increase if you opt for a long tenure.
• Relationship with Citibank: If you have borrowed loans from Citibank in the past and have repaid your dues as per the schedule specified by the lender, it is more likely that you will be charged a better rate of interest. Also, if you are a long-standing customer of Citibank, you can negotiate a lower interest rate, provided you fulfil the required eligibility criteria for availing of a personal loan.
• Repayment capacity: The repayment capacity of a borrower is of seminal importance. Banks usually provide personal loans up to 10 times the monthly salary of a customer. Banks check the CIBIL score of an applicant to determine his repayment capacity. Citibank will offer attractive interest rates to loan applicants with a regular income and a robust credit history.
• Employment details: The employment history and profile of a customer plays a pivotal role in determining the interest rates offered by Citibank bank. Salaried individuals working with high net worth companies may be offered lower interest rates as compared to those who are self-employed, who, typically, don’t have a steady income.

Other Fees and Charges

• Late payment charges: Nil
• Stamp duty: As per state laws

Illustration

For a better understanding of how the interest charged will affect your repayments, let’s take a look at two illustrations.

Illustration 1: Mr. Ankur is a junior employee at a software firm and earns a monthly salary of Rs.25,000. He is looking to take a loan of Rs.1 lakh from Citibank to pay for his healthcare needs. He will be repaying the borrowed sum to Citibank within a period of 1 year. Citibank charges him an interest rate of 11.5% p.a. and also levies a one-time processing fee of 3% of the loan amount. His repayment details will be as follows:

Mr. Ankur will, thus, have to pay a monthly EMI of Rs.8,862 over the course of the loan repayment term, which is 1 year. Since he is borrowing only Rs.1 lakh and repaying the borrowed sum within 1 year, he will only have to pay Rs.6,638 as the interest. He will have to pay a processing fee of Rs.3,000. His total repayment will amount to around Rs.1,09,338.

Illustration 2: Mr. Mohan, an accountant, earns a salary of Rs.50,000 on a monthly basis. He wants to borrow a personal loan of around Rs.2 lakh from Citibank. He chooses a loan repayment term of 2 years. He is charged an interest rate of 13% p.a. and also has to pay a processing fee of 3%. Given below are his loan repayment details:

As per the above-mentioned details, Mr. Mohan will have to pay an EMI of Rs.9,508 every month during the 2-year loan tenure. His total repayment amount will come up to Rs.2,34,201, given that he will need to pay an interest of Rs.28,201 and a processing fee of Rs.6,000.

A personal loan from Citibank can help you finance unforeseen expenses. Ensure that you do your research, check the interest rate and other charges levied by the lender, and calculate your monthly payable EMI before borrowing a personal loan.

FAQs

1. How soon after submitting my personal loan application will I receive the funds?

You will receive the funds within 48 hours of your loan application getting approved.

2. How will I receive the sanctioned loan amount?

The loan amount will be transferred to your savings bank account.

3. Can I make pre-payments during the loan tenure?

Yes, Citibank allows customers to prepay their personal loan.

4. I have a credit score of 500. Can I apply to Citibank for a personal loan?

It is best to have a credit score of over 700 if you wish to be offered a personal loan at a reasonable rate of interest. If you have a credit score of 500, the lender may reject your personal loan application or charge you a high rate of interest for the loan.

5. Am I required to pay the processing fee/loan booking fee at the time of applying for a personal loan?

No, the loan booking fee will be deducted from the loan amount before it is disbursed to your account.