Citibank's personal lending options are among the least expensive in India. For example, the bank charges annual interest rates of 10.99% to 18.99%, while its competitors tend to charge 13% to 20%. Additionally, the bank offers some of the largest personal loans in India, of up to Rs. 30 lakh, which is much higher than the maximum loan amount offered by most banks.
|Summary of Citibank's Personal Loans|
|Lower than average fixed interest rates: 10.99% to 14.25% for salaried borrowers, 15.49% to 18.99% for self-employed|
|Flexible loan amounts: Rs. 25,000 to Rs. 30 lakh|
|Loan tenures: 12 to 60 months|
|Fast cash disbursement: Within 2 business days|
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What Makes Citibank Personal Loans Stand Out to Borrowers
Citibank offers some of the most affordable personal loans due to its low interest rates and processing fees (0.25% - 3%). In particular, the bank offers its most competitive rates to salaried applicants. For example, the bank charges these individuals interest rates of 10.99% to 14.25% and processing fees of just 0.25% to 2%, both of which are among the cheapest available in India. For this reason, we estimate that borrowers may save hundreds of rupees on their monthly payment and tens of thousands of rupees throughout the entire tenure of their loan by choosing to borrow from Citibank rather than the average personal lender in India.
Estimated Cost of Citibank's Personal Loans
|Duration (Years)||Processing Fee||Effective Interest Rate||Monthly Payment||Total Cost|
|1||0.25%||11.24%||Rs. 88,494||Rs. 64,424|
|2||0.25%||11.24%||Rs. 46,719||Rs. 1,23,764|
|3||0.25%||11.24%||Rs. 32,853||Rs. 1,85,190|
|4||0.25%||11.24%||Rs. 25,962||Rs. 2,48,687|
|5||0.25%||11.24%||Rs. 21,862||Rs. 3,14,238|
|*Assuming borrower with net monthly salary of Rs. 75,000, loan of Rs. 10 lakh, total cost includes processing fee|
Citibank's personal loans are also attractive to prospective borrowers that need cash quickly, due to the fact that the bank disburses cash for these loans within 2 working days. Additionally, the bank offers loan tenures of 1 to 5 years, giving borrowers some flexibility in choosing a loan duration that best fits their needs.
Interest Rates for Salaried Applicants
|Net Monthly Income||Loan Amount||Interest Rate|
|Less than Rs. 60,000||Less than Rs. 5 lakh||13.25% - 14.25%|
|Rs. 5 lakh - Rs. 10 lakh||12.49% - 13.49%|
|Rs. 10 lakh or more||11.75% - 12.75%|
|Rs. 60,000 - Rs. 1 lakh||Less than Rs. 5 lakh||12.99% - 13.99%|
|Rs. 5 lakh - Rs. 10 lakh||11.75% - 12.75%|
|Rs. 10 lakh or more||11.24% - 12.24%|
|More than Rs. 1 lakh||Less than Rs. 10 lakh||11.24% - 12.24%|
|Rs. 10 lakh or more||10.99% - 11.99%|
One drawback of Citibank's personal loans are that the bank does not offer loans with tenures of less than 1 year or greater than 5 years. This may be problematic for individuals that need quick financing or will need many years in order to pay off their loan. Additionally, while Citibank's loans are still cheaper than average, other banks offer better interest rates to low-income or non-salaried employees.
Interest Rates for Self-Employed Applicants
|Applicant||Annual Gross Take Home Income|
|Professional||Less than Rs. 10 lakh||16.49% - 17.99%|
|More than Rs. 10 Lakh||15.49% - 16.99%|
|Non-Professional||Less than Rs. 10 lakh||17.99% - 18.99%|
|More than Rs. 10 Lakh||16.49% - 17.99%|
Who Can Apply: Eligibility Criteria
Citibank offers personal loans to both salaried and self-employed individuals. This helps ensure that a wide range of prospective borrowers have access to funding through the bank. Unlike many other lenders in India, Citibank does not have explicit income requirements. However, the bank does enquire about your income level as part of its application process.
Other Charges and Fees
Citibank charges a one-time processing fee that ranges from 0.25% to 3% depending on your employment and loan amount. For more information, please refer to the table below. In addition to its processing fee, Citibank charges a preclosure fee of up to 4% for borrowers that decide to repay their loan in full before the end of its scheduled tenure.
|Borrower Salaried, loan less than Rs. 10 lakh||0.99% - 2.0%|
|Salaried, loan of at least Rs. 10 lakh||0.25% - 0.50%|
|Self-Employed||2.00% - 3.00%|
How to Apply: Application Process
In order to apply for Citibank's personal loans, you must fill out an application form. This form requires you to provide your full name, city, occupation, income information and PAN number. Unlike other lenders, Citibank does not require that you provide documentation as part of your loan application, which makes it a much simpler process. The bank also gives its application decisions within 4 hours on business days, which helps make the loan application process more straightforward for prospective borrowers.