CitiBank Personal Loan EMI Calculator

Citibank is a foreign bank that started its operations in India in 1902 from Kolkata. At present, the headquarters of the bank is in Mumbai. It is a subsidiary of Citicorp, a multinational financial services corporation that is headquartered in Newyork City. Citibank offers various personal, corporate and retail products.

Citibank Personal Loans have gained popularity owing to the attractive interest rates and easy availability. The bank provides personal loans at an interest as low as 9.99% p.a. The online application process makes the obtention of the loan more accessible and faster. Also, there is the facility of pre-approved personal loans for existing customers of the bank who are eligible. If you qualify for the pre-approved loan, you can get the amount in your account within minutes of placing a request.

To ease the loan payment, Citibank offers flexible repayment options, i.e., payment of the loan in Equated Monthly Instalments. The bank provides Citibank Personal Loan EMI Calculator to know the EMI for the loan amount to suit your pocket. 

Knowing the monthly outgo towards the proposed loan before applying for the loan will help you manage your monthly budget accordingly. You should estimate the disposable income even before using the Calculator to know the threshold for EMI of the proposed loan. To arrive at the surplus available, you should consolidate all your existing obligations and liabilities along with the buffer amount that has to be kept aside for likely emergencies during the repayment period. To evaluate the EMI, you can use the Citibank Personal Loan EMI Calculator in the manner shown below.

• Access the EMI Calculator on the website of the bank.
• Enter the loan amount, rate of interest and tenure.
• The EMI will be calculated immediately.
• Use the Calculator several times by changing the loan amount and the tenure till you arrive at the EMI that is within the threshold limit set out of your monthly income for the EMI.

Citibank applies the reducing balance method for the calculation of Personal Loan Interest and =the mathematical formula for the calculation is EMI = [P x R x (1+R)N] / [(1+R)(N-1)]. Here P=Principal R=Interest and N=Tenure in months. Along with the EMI, the interest payable for the entire period will also be calculated. The amortization schedule will give an idea of the interest outgo month wise for the entire period. You can observe that the interest keeps decreasing as the outstanding balance decreases with every apportionment towards the principal. 

Know in detail: Simple Interest Formula Calculation

To ease the repayment of the personal loan Citibank provides a flexible repayment plan in the form of EMI for an extended period of up to 60 months. Further to assess your eligibility and manage your EMI within the available budget, the bank provides Personal Loan EMI Calculator. The EMI Calculator is a technical tool that is simple to use and needs only three variants for the calculation, i.e., the loan amount, tenure and the rate of interest. The benefits of the EMI calculator are given below:

• The EMI Calculator is easily available on the website of the bank and can be accessed by one and all.
• It needs no technical skill to use the Calculator as it is simple and user-friendly.
• The complicated mathematical calculation will be made easy, and you will be able to get a 100% accurate result within seconds.
• There are no charges levied for using the Calculator.
• You can use it any number of times till you arrive at the EMI that fits your budget.

If you are availing of a loan for the first time and do not understand the nuances of the loan, you should definitely understand the implication of knowing the EMI before applying for the loan. Here is an example for you.

If you have a monthly gross income of Rs. 25000/- and the EMI is Rs. 12000/- you will be left with Rs. 13000/- for your expenses that include food, rent, mandatory bills etc. You should necessarily work out the expenses that are required and then borrow to the extent of the funds available after meeting all the required expenses. Otherwise, you will land up in financial stress. To arrive at the EMI that fits the benchmark, i.e., the surplus funds available, you should use the Citibank Personal Loan EMI Calculator.

If you already have other loans and credit card dues, you should arrive at the disposable income by consolidating the mandatory expenses and the existing liabilities and then use the Citibank Personal Loan EMI Calculator to arrive at the EMI that fits into the funds available.

Citibank Personal Loan is the best solution for emergency funds requirements. The versatility of the purpose of the loan makes it even more convenient as you need not produce proofs like bills and receipts for the end use of the loan. The attractive rate of interest and the flexible repayment options help you to choose an EMI that fits your budget. That does not mean you should get impulsive and borrow for purposes that are not a priority.

Choosing an EMI that suits your budget is essential to keep up the prompt repayment of the loan till the end of the tenure. EMI missouts can have heavy repercussions that may negate the chances of future loans like home loans or any other loans when in need. So, before applying for the loan, a review of the monthly budget and cash flows for now and the near future should be done to ensure prompt repayment.

After arriving at the surplus funds available to service the EMI, you can use the Citibank Personal Loan EMI Calculator to arrive at the EMI that suits your budget. Try various combinations of loan amount and tenure till you arrive at the EMI that fits your budget.

The three main factors that influence the EMI of Citibank Personal Loan are:

• Loan Amount: This is the amount you propose to borrow from the bank in the form of a personal loan. A higher amount translates into a higher EMI. Assess your loan requirement and try various combinations with tenure to arrive at the EMI that fits your pocket. If in case the affordable EMI cannot fetch you the desired loan amount, you can declare other sources of income like Fixed Deposit Interest, Rent, Returns on Mutual Funds etc., to enhance the eligibility. If you have no alternative income sources, you can include a co-obligant with a good score and regular income.
• Rate of Interest: Rate of Interest is the one factor that decides the cost of the loan. The method of interest calculation can also affect the EMI of the loan. Interest calculation applying the reducing balance method will have a lower EMI than the interest calculation done applying the flat rate method. Higher the rate of interest higher will be the EMI, and lower the interest rate lower will be the EMI. It is thus advised to compare the rate of interest prevailing in the market to choose a deal that will fetch you the desired amount at an affordable EMI.
• Tenure: The EMI will be the least if you choose the maximum tenure. But this will increase the cost of the loan though it will be easy on your pocket. The prudent way of choosing the tenure is a higher one while applying for the loan to lessen your burden initially. You can then make partial prepayments to reduce the tenure by opting for rescheduling the EMI. This way, you will get the desired loan amount while making it less expensive. The higher the tenure, the lower will be the EMI and the lower the tenure, the higher will be the EMI.

There are various other charges like processing charges, prepayment charges, delayed payment charges etc., that are associated with the personal loan. The EMI calculator will give you an idea of the total interest payable for the chosen tenure. But you cannot derive the cost of the loan with interest charged alone. The charges that can add up to the cost of the loan are given below.

Processing charges: Banks/NBFCs charge processing charges ranging from 0.50% to 2% of the loan amount at the time of applying for the loan. This will also add up to the cost of the loan. So while comparing the rate of interest, you should also compare the processing charges of different lenders to make a well-informed decision.

Prepayment charges: If you have decided to opt for a higher tenure initially with the intention of making prepayments during the repayment period to reduce the tenure and the cost of the loan, then you should definitely compare the prepayment charges levied by different lenders. The charges could range from 2% to 4% of the prepaid amount. You should then compare the returns on the amount that you intend to repay if invested in any other investment plan versus the amount saved on the loan interest before choosing the loan provider.

These are the charges about which the EMI calculators will not tell you. You should get the information either by visiting the bank branch or by calling the customer care helpline of the bank.