Citibank Personal Loan Review: One of India's Most Affordable Loans

Citibank Personal Loan Review: One of India's Most Affordable Loans

Citibank provides some of best personal loan offerings in India.

Good for

  • Salaried Individuals
  • Individuals seeking a personal loan with fixed interest rates

Bad for

  • Individuals seeking personal loans with tenures of less than 1 year or more than 5 years

Editor's Rating

4.5/5.0

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

Table of Contents

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 FeeEffective Interest RateMonthly PaymentTotal Cost
10.25%11.24%Rs. 88,494Rs. 64,424
20.25%11.24%Rs. 46,719Rs. 1,23,764
30.25%11.24%Rs. 32,853Rs. 1,85,190
40.25%11.24%Rs. 25,962Rs. 2,48,687
50.25%11.24%Rs. 21,862Rs. 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 IncomeLoan AmountInterest Rate
Less than Rs. 60,000Less than Rs. 5 lakh13.25% - 14.25%

Rs. 5 lakh - Rs. 10 lakh12.49% - 13.49%
Rs. 10 lakh or more11.75% - 12.75%
Rs. 60,000 - Rs. 1 lakhLess than Rs. 5 lakh12.99% - 13.99%
Rs. 5 lakh - Rs. 10 lakh11.75% - 12.75%
Rs. 10 lakh or more11.24% - 12.24%
More than Rs. 1 lakhLess than Rs. 10 lakh11.24% - 12.24%
Rs. 10 lakh or more10.99% - 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

ApplicantAnnual Gross Take Home Income
ProfessionalLess than Rs. 10 lakh16.49% - 17.99%
More than Rs. 10 Lakh15.49% - 16.99%
Non-ProfessionalLess than Rs. 10 lakh17.99% - 18.99%
More than Rs. 10 Lakh16.49% - 17.99%

Who Can Apply: Eligibility Criteria

Consider this if are a salaried employee

Required Monthly Income Unknown
Min. Loan Amount Rs. 25,000
Max. Loan Amount Rs. 30 lakh
Processing Fee 0.25% - 2%
Interest Rate Type Fixed
Loan Tenure 12 to 60 months

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.

Processing Fee

Borrower Salaried, loan less than Rs. 10 lakh0.99% - 2.0%
Salaried, loan of at least Rs. 10 lakh0.25% - 0.50%
Self-Employed2.00% - 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.