Published: July 28, 2021 | Updated: August 3, 2021 | Posted by: Venus Zoleta | Personal Loan
Citibank is primarily known for its credit cards that complement a wide range of lifestyles and needs. But did you know that Citibank also has a good loan product that’s worth checking out?
Such is the Citi Personal Loan. It has a lot of exciting features and unique selling points that make it a better choice over other loan products in the market. Interested? We’ve pulled together a comprehensive guide for you, from this loan’s uses to interest rates. We’ve also included a quick Citibank personal loan application guide in case you decide to avail of this product.
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The Citi Personal Loan is a financial product that borrowers can use for emergencies and other goals in life. It’s an unsecured loan, meaning that you don’t have to pledge an asset as a form of repayment to the bank.
A personal loan from Citibank can be used for a wide range of purposes, including the ones below.
If you are planning to start a business and need some sizable capital, the Citi Personal Loan can help you. You may also use the proceeds of your loan to expand your inventory if you’re already running a business.
Want to increase the resale value of your home? Is your family growing that you already need to expand your home? Or you need to have your house repaired after a typhoon or any natural disaster?
The funds that you’ll receive from the Citi personal loan could be big enough to help you renovate your property.
You may be a returning college student, or you may be planning to enroll in a baking class for your future patisserie. The Citi personal loan can also be used for paying your tuition or funding your other personal growth endeavors.
If your payday doesn’t coincide with your children’s tuition payment schedule, you can borrow money from Citibank to cover such expenses. Moreover, the surpluses of your loan can be used to buy your kids’ school supplies, books, and learning materials.
There’s a prevailing belief that you shouldn’t pay your debt with another debt. But with Citibank’s personal loan, this move is a practical one. You can use the proceeds to fully pay an existing high-interest loan. That way, the only loan that you‘ll need to repay is the one from Citibank. You get to save a lot on interest since this loan product has low interest rates.
Weddings cost a lot to organize. If you’re looking to add some funds to your budget, the Citi Personal Loan may provide a large sum of money to sufficiently cover your wedding expenses.
Has someone in the family been hospitalized? Is the car that you’re using for livelihood broken? During these emergencies, you can always count on the Citi Personal Loan.
Note: Remember that the Citi Personal Loan is multi-purpose in nature, so you can use the loan proceeds in whichever way you want. However, use the cash with utmost caution. Do not use the borrowed money in seedy transactions and illegal affairs.
There are many reasons you should go for a Citi Personal Loan application. Here are some of the loan product’s features that may convince you to apply.
|Citi Personal Loan||Features and Benefits|
|Processing time||24-hour approval|
|Loan tenor||12, 24, 36, 48, or 60 months|
|Loan amount||PHP 100,000 to PHP 2 million|
|Annual contractual rate||26.9%|
Citibank approves personal loan applications in as fast as 24 hours, making it the bank with the quickest loan approval time in the Philippines. Other banks take at least five to seven banking days or longer to approve a personal loan.
With the Citi personal loan, borrowers can get approved without the need for collateral or a guarantor. Fast approval, of course, depends on the borrower’s eligibility and completed requirements.
Borrowers can avail of a Citi personal loan with an amount ranging from PHP 100,000 to PHP 2 million. Thus, the loan from Citibank can be used for a wide array of purposes. Just keep in mind, though, that the actual loan amount is subject to the bank’s approval.
Another advantage of the Citi personal loan is having the longest repayment term in the Philippines of up to five years. Borrowers can choose to repay their personal loan in 12, 24, 36, 48, or 60 months, depending on how much they can afford to pay per month.
The Citi personal loan is one of the loans with the lowest interest rates in the Philippines. This means the cost of borrowing from Citibank is lower compared to most banks and personal loan providers in the country.
To fully understand how Citibank computes the Citi personal loan interest rate, you should be familiar with the bank’s three types of interest rates and their differences.
Citibank defines the annual contractual rate (ACR) as the interest charged on the personal loan based on a 360-day period. It computes the ACR per month consisting of 30 days. The interest is also calculated on the unpaid daily balance of your loan.
The average ACR for the Citi personal loan is 26.9%. Borrowers can check the ACR in the loan disclosure statement issued upon loan approval.
The monthly interest rate is a revolving interest of 2.42% that’s applied to any or all of the following:
This interest charge, which is compounded monthly, continues to be charged until the total amount due plus accrued interest is fully paid.
To avoid this personal loan fee, make sure to choose a monthly installment amount and loan term that will enable you to make timely repayments on your Citi personal loan.
The effective interest rate (EIR) is “the rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of loan proceeds,” as defined by the Philippine Accounting Standards.
Simply put, it’s the rate a borrower actually pays on a personal loan. The EIR includes the monthly interest charge, disbursement fee, and documentary stamp tax (DST).
The EIR computation depends on your loan amount and loan term, the exact amount of which is reflected in the disclosure statement along with the ACR. For example, if you borrow PHP 200,000 from Citibank and choose to pay it off in 36 months, your EIR will be 32.05%.
To be eligible for a personal loan with Citibank, a borrower must meet all these criteria:
It isn’t enough to know if you’re eligible for a Citi personal loan. You also have to make sure that you can afford the monthly loan repayments. For determining the monthly installment that fits your budget, an online loan calculator comes in handy.
Citibank has an online personal loan calculator that you can use to check which repayment term for your target loan amount will work best for your budget.
Here’s how to compute your monthly repayments using the Citibank Online Personal Loan Calculator.
Note: The resulting figures of your calculation are just estimates. They’re subject to change. Remember that your actual amortizations will be reflected in the loan disclosure statement.
Citibank requires borrowers to submit a photocopy of the following documents (except for the personal loan application form, which should be an original copy).
Once you’ve confirmed that you’re qualified for a personal loan from Citibank, have all the necessary requirements, and can afford the monthly repayments, you can already proceed with your Citibank loan application. The process is simpler than you expect.
Here’s a step-by-step guide to help you complete your Citibank personal loan application.
Make your Citi Personal Loan application process simpler and faster by doing it online. It’s as easy as 1-2-3.
If you always get a system error message when applying for a Citi loan online, clear the cache on your browser and device and then try submitting your application again. You may also try using a different browser or device.
While Citibank does approve certain loan applications within 24 hours, not all borrowers can get approved that fast. How quickly you’ll get approved for a Citibank personal loan depends on whether the documents you submitted are complete or not and the result of the bank’s credit evaluation, among other factors.
Here’s what you need to do before and during your Citi personal loan application to raise your chance of getting approved fast:
Generally, Citibank will be the first to call you to confirm the approval of your application. If your application has been approved, the bank will arrange your mode of disbursement.
If you don’t hear from Citibank several days after you applied, call the Citi personal loan hotline (available from 8 a.m. to 9 p.m. daily) to check your Citi personal loan application status.
As soon as Citibank approves your personal loan application, you’ll receive another phone call to finalize the details of releasing the loan amount.
Here are your options for claiming your Citi personal loan proceeds:
The bank will also require you to review and sign a Loan Disclosure Statement (DS). Also, be ready to submit post-dated checks or PDCs for the monthly loan payments based on the schedule indicated in the DS.
After submitting the signed DS and PDCs, Citibank will then release the funds to you. Note that only the approved borrower can receive the loan proceeds; the funds will not be released to somebody else.
According to Citibank, it usually takes less than a week up to 12 calendar days (after the call from the bank) for borrowers to receive their loan amount.
You may be thinking of issuing a special power of attorney (SPA) or employing similar means to have someone receive the loan proceeds. But unfortunately, Citibank doesn’t allow this arrangement. For your security, the money will only be released to you, the loan applicant.
Here are the personal loan fees you should pay for when borrowing from Citibank:
Citibank accepts only post-dated checks as the form of loan payment. Approved borrowers are required to issue PDCs for the monthly payments upon release of the loan proceeds.
Your first equated monthly installment (EMI) will start from the second succeeding month after you get your personal loan. For instance, the EMIs for a loan approved in January will begin from March 1st. Always take note of the due date to avoid penalty fees.
If you’re cash-strapped and looking for a reliable lender, make sure to include Citibank on your list. The Citi Personal Loan is among the best loan products on the market, as it has low interest rates.
Furthermore, its high loan amounts mean that you can use the money for a wide array of purposes, such as home improvement, debt consolidation, emergencies, business growth, emergencies, and more.
May the Citibank personal loan application guide above help you improve your chances. To learn more about getting a personal loan from Citibank, call (02) 8888-CASH (2274) and speak with a loan officer. Good luck on your Citi personal loan application!
Venus is the Head of Content at Moneymax, with 15+ years of experience in digital marketing, corporate communications, PR, and journalism. She invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Outside of work, she’s crazy about cats and Korean dramas. Follow Venus on LinkedIn.