Citibank Personal Loan Interest Rates

Below are the details rates of interest for various personal loan schemes offered by the Citibank:

Salaried Applicants

Citibank Personal Loan has many other charges apart from the interest rate, such as:

• Processing fee: Up to 2% of the loan amount sanctioned. This fee will be deducted from your loan amount during disbursal.
• Prepayment charges: Up to 4% of principal outstanding + interest for the ongoing month. Loans that are booked on or after 01.10.2015 can be closed in full after the first 12 months and loans booked before that can be closed in full after the first 6 months. Partial prepayment can be made after the first 12 months and the prepayment amount should be equal to minimum 2 EMIs and maximum 5 EMIs. 
• Stamp duty: As per the Loan Agreement and the prevalent State Laws

• Citibank Personal Loan rate of interest depends on the repo rate and the reverse repo rate fixed by the Reserve Bank of India during its monetary policy sessions. However, the decision to pass on the interest rate hike or fall to Personal Loan borrowers entirely rests with the banks. The banks may not immediately hike interest rates for Personal Loans as soon as the RBI increases the policy rates. This is because banks also analyse their liquidity, cost of funds, competition, and its growth rate to determine the interest rates.
• Since the Personal Loan is an unsecured loan, banks do not demand any personal guarantor or any collateral against such loans.
• Citibank prefers borrowers who have a high credit score and good credit history. The bank thoroughly evaluates the repayment capacity, the credit history, and credit behaviour of an individual before sanctioning any loan.

Interest rates on any Personal Loan depend on parameters like loan amount, tenure and on the repayment capacity of the borrower and their relationship with the lender. Interest rate offered by Citibank depends on factors as listed below:

• Loan tenure: Citibank offers flexible loan tenures depending on the requirement of the borrower. For short loan tenures, the bank charges a lower interest rate as compared to loans offered on longer tenures.
• Loan amount: Rate of interest on personal loans also depend on the quantum of loan to be availed. Citibank offers lower interest rates for higher loan amounts.
• Relationship with Citibank: Existing relationship with Citibank plays an important role in deciding the interest rates. If a customer has a good rapport with Citibank, it means that there is trust between the bank and the borrower. As a result, the bank could be in a position to reduce their interest rates offered to such known customers.
• Repayment capacity: Citibank thoroughly analyses the previous credit history of a borrower based on the CIBIL score. Citibank considers the repayment capacity of the borrower as a very important parameter in deciding loan approval and interest rate. Citibank usually provides Personal Loans up to 10 times the monthly salary of a customer. Bank offers a lower interest rate for applicants working in a stable job for over a year.
• Employment details: Citibank checks the employment history of loan applicants before deciding interest rates. Working for large and reputed companies is likely to help you get lower interest rates. Self-employed professionals generally attract higher interest rates since they do not have a steady monthly income.
• Credit score: A person who has a good credit history is one who has repaid all previous loans on time and in full and has an excellent track record of repayments. Citibank goes through the entire CIBIL report before sanctioning any loan. If loan applicants have a low CIBIL score, they are unlikely to get their loan approved. Applicants with a higher CIBIL score can get lower interest rates compared to applicants with a lower CIBIL score.

You can approach Citibank for an additional loan as a top-up to your existing loan. Citibank offers top-up loans at interest rates that are similar to that of the existing loan. Citibank, however, evaluates your repayment behaviour and track record on the existing loan before approving the top-up loan. If you have a good repayment track record, Citibank provides you such top-up loans. Currently, the interest rates on top-up loans at Citibank start from 9.99%.

MyMoneyMantra is a sales and distribution partner for Citibank in offering Personal Loans to individuals, MyMoneyMantra is a user-friendly online lending marketplace that explains the loan application process and allows you to apply for a Personal Loan online. Once you apply for a Citibank Personal Loan online after filling your relevant details, Citibank's representatives will get in touch with you instantly to further process the loan and take things forward.

MyMoneyMantra offers free advisory service that assigns you a Personal Loan advisor who makes sure that your application at Citibank is processed quickly and you get Personal Loans at the best interest rates.

MyMoneyMantra allows you to compare the interest rates and the terms and conditions of all banks and NBFCs on its website before you choose any one option. Applying for Citibank Personal Loans With The Lowest Interest Rates is easy and instant with MyMoneyMantra.