by Venus Zoleta, on category "Personal Loan"
November 20, 2019
This article was originally published on September 10, 2018 and was updated on November 20, 2019.
Approval within 24 hours and flexible repayment terms of up to five years—these features make the Citi personal loan attractive for those with urgent cash needs.
Thinking of applying for a personal loan from Citibank? Here’s a definitive guide to help you determine if it’s the right borrowing option for you and raise your chance of getting approved for a Citi personal loan.
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 guarantor. Fast approval, of course, depends on the borrower’s eligibility and completed requirements. Read more about this in our tips below. ⬇️
Borrowers can avail of a Citi personal loan with an amount ranging from PHP 20,000 to PHP 2 million. Thus, the loan from Citibank can be used for a wide array of purposes, such as emergencies, home improvement, debt consolidation, tuition payment, business growth, and more.
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 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 on 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.
Here are the other personal loan fees you should take note of when borrowing from Citibank:
To be eligible for a personal loan with Citibank, a borrower must meet all these criteria:
On the Citi Personal Loans page (1), you can take a short quiz to check your eligibility for the loan. Just look for the Loan Eligibility tab and click the Start Now button.
The online quiz will ask for your pertinent personal details such as age, employment status (employed/self-employed), tenure, monthly income, basic credit card information, and reason for borrowing money. These factors determine if you qualify for a Citi personal loan.
Citibank requires borrowers to submit a photocopy of the following documents (except for the personal loan application form, which should be an original copy).
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.
Tip: You can keep on choosing another loan tenor until you get the monthly installment that fits your budget.
Once you’ve confirmed that you are qualified for a personal loan from Citibank, have all the necessary requirements, and can afford the monthly repayments, you can already proceed with your Citi personal loan application. The process is simpler than you expect.
Here’s a step-by-step guide to help you get started.
Make your Citi Personal Loan application process simpler and faster by doing it online. It’s as easy as 1-2-3.
Just to manage your expectation: While Citibank does approve certain loan applications within 24 hours, not all borrowers can get approved that fast. How quick you’ll get approved for a Citibank personal loan depends on the completeness of your submitted documents 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:
If you don’t hear from Citibank several days after you applied, call the CitiPhone hotline (available from 8 a.m. to 9 p.m. daily) to check your Citi personal loan application status. Here’s how:
Non-Citibank credit cardholders may stay on the line or press 0 to talk to a call center agent.
As soon as Citibank approves your personal loan application, you’ll receive another phone call to finalize the details of releasing your loan proceeds.
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 (6) 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 applicant 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 amounts.
Aside from issuing PDCs, you may choose to repay your loan via auto-debit arrangement (ADA) with the bank where you have a savings account. If you prefer to pay via ADA, you’ll be asked to fill out an auto-debit enrollment form. This also requires approval from your branch of account.
For overdue payments, you’ll have to settle it over the counter at a Citibank branch or any of its accredited payment centers at least five banking days before the next payment due date.
Besides a Citi branch, here’s where you can pay your overdue Citi personal loan:
Getting a Citi personal loan in the Philippines is easier and faster than you might expect. May this guide help you meet your financial goals through a personal loan. To learn more about getting a personal loan from Citibank, call (02) 8888-CASH (2274) and speak with a loan officer. Good luck with your Citi personal loan application!