A specialised financing provided by Citibank that utilises the unutilised credit limit on an individual’s credit card to provide funds as per a loan. This loan is already pre-approved and all that the applicant has to do is to apply for the loan through the bank. The loan amount is by all means a personal loan which is much easier to apply for and allows fund availability within a relatively short period.
Citibank Loan on Credit Cards is quite versatile in its usability. The bank doesn’t impose many limitations on the loan. The loan adds on to the usage of the credit card, so EMIs payable come as a part of the minimum amount due per month on the credit card.
The loan provided can be availed specifically by all individuals who own credit cards issued by Citibank and have a sizable unused portion of their credit limit. Terms and conditions as well as age limits and income criteria as defined for credit cards will be applicable for this kind of loan.
The loan amounts under the Loan on Credit Cards facility depend upon the unused credit limit of the applicant. As per the value of the unused credit limit, a loan amount can be issued that is within the credit limit of the applicant. In certain cases, Citibank might also allow a loan that exceeds the credit limit. The minimum amount of loan that can be availed through this facility is based on the discretion of Citibank, observing the financial behaviour of the applicant.
The loan applied can range within tenures decreed by Citibank and EMIs can also be made for as long as tenure depending upon the principal amount. Pre-closure of the loan might attract additional fees at the rate of 3% of the outstanding amount.
Interest payable on Citibank Loan on Credit Cards varies as per the usage of the amount. The rates are based on the discretion of the bank, though as of November 2015, the rate is similar to the interest rate charged on the credit card through which the loan is applied for. Differential rates are applicable for different credit cards from Citibank and accordingly that affects the interest rate of the loan availed. The nominal rates stay within 12% to 19% per annum. In case loans approved are exceeding the credit limit, an over limit charge might be imposed. Processing fees for such loans will be 2.5% of the loan amount (or INR 300), whichever is higher.
This loan is promoted as an ‘Instant Loan’ which makes use of existing KYC documents to provide requisite documentation. Extra documentation might be requested by Citibank as required.
This financing can be applied for online at Citibank’s website, by calling up the bank’s phone banking system or at any physical branch. One should possess the necessary documentation to be submitted at the time of applying for this financing option.
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