Balance Transfers help customers reduce the burden of a big credit card bill, by allowing them to transfer their outstanding balance to another credit card and subsequently pay it off in installments. Unlike the usual credit card bills, in this case, customers can enjoy a fixed rate of interest and also get a fixed EMI each month, which will help them pay off the debt as seamlessly as possible. Citibank offers the facility to a select bunch of customers, who can reduce their debt burden, provided that they meet the eligibility. Here’s what the whole process looks like.
You can transfer your outstanding balance from another credit card if Citibank finds you eligible. Citibank extends this facility only to select customers. Your eligibility will depend on the following factors:
The tenure offered under the Loan on Phone facility will be determined by Citibank. There are no set terms available for the balance transfer facility. Depending on the transfer amount and other factors, your tenure will be determined. You might be offered a choice of 3, 6, 9 or 12 months which you can choose according to your convenience.
The rate of interest you will be charged on a Citibank Balance Transfer depends on a number of key factors. These include your credit score, your relationship with the bank, as well as your negotiating ability. Here are a list of charges you.
|Rate of interest||18% per annum|
|Processing Fee||2.5% of the transfer amount or Rs. 300, whichever is higher|
|Goods and Service Tax||Goods and Service Tax will be levied|
|Late payment fee||As specified in the loan document at the time of availing the facility|
|Preclosure charges||3% of the outstanding principal amount|
In order avail a Citibank credit card balance transfer, you need to contact the bank either online or by visiting a branch, upon which they will give you all the information on how to go about the process.
Unless you receive a balance transfer offer from Citibank through their email or other marketing campaigns, you need to have an existing Citibank Credit Card to avail the facility.
Interest rates on a Citibank balance transfer can range between 12% to 26%. How high or low an interest rate will be is dependent on your credit history, your repayment history, and your relationship with the bank?
There is not set limit as such when availing a balance transfer. However, the maximum you can get is up to 75% of the credit limit you have available on your card.
In your case, sadly, the balance transfer may not work. Your credit limit has to be higher than the transfer amount you are looking to avail.
Yes. You will have to pay a 3% penalty if you are choose to prepay your loan before the tenure you have already chosen.
Interest rates range between 18% to 24% per annum on the balance transfer facility offered by Citibank, with the average holding at 21.37%.