Citibank is a division of the popular Citigroup and is one of the leading banks in India. Citibank credit cards are known for low interest rates and excellent features and benefits. From time to time, they have introduced credit cards that are specially designed to meet the needs of their customers. Citibank considers the spending habits of their cardholders and offers exclusive features that benefit them such as fuel surcharge waiver, reward points, and discount on flight and hotel bookings.
All credit card providers in India charge an interest rate on the closing balance on the credit card if the cardholder does not pay the total outstanding amount on or before the due date. An interest rate is also called “Finance Charges”. Currently, Citibank charges an interest rate of 3.25% per month which is 39% per annum on the first Citibank credit cards except for Citi Ultima Credit Card.
However, the interest rate can vary between 3.10% per month (37.20% per annum) to 3.40% (40.80% per annum) depending on various factors. Citibank credit cardholders will be charged a low interest rate if they make the payments on time and utilizes the credit limit wisely. In case of default, the interest rate can go up to 3.50% per month (42% per annum) till all the dues are paid in full and 3 months after that.
Most Citibank cardholders are not aware of how the interest rate is calculated on their credit card and land up spending a huge amount on their card and fall into the debt trap. Citibank charges the applicable interest rate only if you do not pay the total outstanding amount on or before the due date or within the grace period.
If the previous month’s outstanding balance is paid in full, Citibank will give you a grace period to make your payment in the current cycle. However, if you fail to pay the entire bill amount within the stipulated time, an interest rate will be charged on the closing balance on the card from the date of transaction until you pay all dues in full. Citibank charges the interest rate on your credit card balance on a daily basis.
If you apply for a secondary Citibank credit card, the interest rate applicable on your secondary card will be the same as your existing credit card. This is not applicable for Citibank Ultima Credit cardholders. Citibank charges an interest rate on both Equated Monthly Instalment (EMI) and non-EMI transaction made on your credit card.
If you choose to close your Citibank credit card, the bank will continue the applicable interest rate, taxes, and other charges till your clear the outstanding balance. If you choose to default on your credit card bills or close your credit card, Citibank is entitled to ask you to repay the outstanding amount immediately. In case, you do not pay the outstanding balance even after constant reminders from Citibank, the bank will report your default status to the credit reporting agencies in India which will affect your credit score negatively.
|Credit Card||Monthly Rate||Annual Rate|
|For all first Citibank credit cards excluding Citi Ultima||3.25% per month||39.0% per annum|
*Please note that the interest rate between 3.10% per month (37.20% per annum) to 3.40% (40.80% per annum) depending on various factors. In case of default, the interest rate can go up to 3.50% per month (42% per annum) till all the dues are paid in full and 3 months after that.
Citibank will not charge you interest if you pay the total balance within the due date. Non-payment of the total due amount within the due date will attract interest. Apart from that, the below transactions can also attract interest charges:
Also known as a grace period, an interest-free period is a period offered by Citibank to their credit cardholders. If the cardholder pays the outstanding amount within this period, the interest rate will not be levied. The grace period or the interest-free period offered by Citibank can range from 20 to 50 days depending on the type of credit card you hold. Also, if you have not cleared the total outstanding balance in the previous billing cycle, the grace period will not be applicable.
No. Interest rate will only be levied if you do not pay the minimum due amount within the due date.
You can make your Citibank credit card payment in any one of the following ways:
You can reach the Citibank Grievance Redressal Department via email at email@example.com. Alternatively, you can also call 1800 425 2484 (Toll-free) or 022-49552425 (Local calls) between 10:00 am and 6:00 pm (Monday to Saturday). For further escalation, you can contact the Principal Nodal Officer, Mr. M Dhananjayan by sending him an email at firstname.lastname@example.org. If your issue is not resolved within one month, you can visit www.citibank.com/india and read about Banking Ombudsman scheme for more information.
If you default on your credit card bill, Citibank will send you reminders from time to time to settle the total outstanding balance. Citibank will give you a grace period of one month to settle all dues. If you are unable to make the payment within the grace period, Citibank will report your default status to the credit reporting agencies in India which will affect your credit score. If you make a payment after your account is reported, Citibank will withdraw the defaulter status but such changes will reflect after 45 to 60 days.
The finance charges for cash advances is 2.5% on the amount withdrawn, subject to a minimum withdrawal of Rs.500.