Citibank Business Loan

Updated: 06-04-2023 09:19:17 AM

Note: With effect from March 01, 2023, Axis Bank has acquired Citibank India’s consumer banking business. All the business loan interest rates, fees and charges will be charged as per the sole discretion of Axis Bank.

Business loans offered by Citibank are termed as ‘CitiBusiness’ Loan to meet the working capital requirements of entrepreneurs and MSMEs. Citibank offers a range of both secured and unsecured business loans that include working capital loans, MSME loans, short-medium- and long-term loans, overdrafts, and import and export finance. The business loan interest rate offered by Citibank depends on the applicant’s profile and business requirements.

Citibank Business Loan Interest Rate
Interest Rate	As per business requirements
Loan Amount	As per bank’s discretion and applicant’s profile
Processing Fees	Up to 2% of the sanctioned loan amount
Renewal Fees	Up to 2% of the line amount (charged annually)
Pre-closure Charges	Up to 2% of the outstanding amount
Penal Interest Rate	4% above existing interest rate on the outstanding amount for defaulted period
Collateral	Property, Stock and Book debts
Loan-to-Value (LTV) Ratio	Maximum 80% for property backed lines

Note: The mentioned interest rates, fees and charges are subject to change and depends on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

Types of Business Loans offered by Citibank

Working Capital Management

• Competitive London Interbank Offered Rate (LIBOR) helps in expanding business globally
• Short-term loans available in Indian and foreign currency
• Dropline overdraft feature available with a combination of Term loan and Overdraft
• Cash credit loan available at competitive interest rates

Capital Expenditure

• Term loans offered in foreign currency at attractive rates
• Loan amount to be used for the construction of warehouse, factory premises, branches, etc.
• Loans under Capital expenditure can also be used for the purchase of fixed assets
• Loans against property is also available with stock and book debts as collateral
• Loan-to-value (LTV) ratio is maximum up to 80% for property backed lines

Export Finance

• Letter of Export of credit advising
• Letter related to credit discounting and credit confirmation
• In competitive LIBOR denominated rates, Pre- and post-shipment credit in local currency

Import Finance

• Letter of credit
• Import financing at LIBOR denominated rates
• Guarantees on financials, performance and advance

Citibank Commercial Vehicle Loan and Construction Equipment Finance 

(Commercial Vehicle / Construction Equipment Finance) Interest Rate – 2022
Customer Grade	New Asset (p.a.)	Used Asset/Top up/Refinance
A & B Grade	9.00% – 11.00%	11.50% – 15.00%
C Grade/MO	9.50% – 11.50%	12.00% – 16.00%
SMTO/SO	10.00% – 12.00%	13.00% – 17.00%
FTU/FTB	10.50% – 12.50%	14.00% – 18.00%

Note: The mentioned interest rates are subject to change and depends on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges and are effective from 1 May 2022.

Below is the categorization of the customer’s grades based on number of vehicles and asset ownership:

Customer Grade	Transportation – Vehicles	Construction – Asset
A & B	More than or equal to 12	More than Rs. 100 lakh of present replacement value of asset ownership
C Grade/MO	More than 6 and less than 12	More than Rs. 50 lakh of present replacement value of asset ownership
SMTO/SO	More than 1 and less than 6	More than Rs. 11.50 lakh of current replacement value of asset ownership
FTU/FTB	No ownership of vehicles	No Asset Ownership

Customer’s final grade depends on the following parameters:

• Customer’s financials and industry experience
• Date of assets being provided as collateral
• Feedback and market reputation from references
• Free to finance ratio of owned equipment or vehicles
• Guarantor profile
• Repayment history
• Skills to arrange underlying vehicle/equipment
• Transaction costs

Citibank Overdraft Facility (Stock Power)

Particulars	Fees and Charges
Interest Rate	10.75% – 13.25% p.a.
Overdraft Amount	Min. Rs. 1 lakh & Max. Rs. 20 lakh
Margin required	50-70%
Out of Pocket Expenses (OPE)	Upto 1.0% of the line amount
Scrips Withdrawal Charges	Up to 2 scrips – Rs. 100 per scrip, For 3 or more scrips – Rs. 250 flat
Penal Interest	2% p.a. above the applicable interest rate

Note: The mentioned interest rates, fees and charges are subject to change and depends on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

The overdraft limit is offered, as per the value of securities that are in favor of bank and should fulfil margin criteria.

Citibank Customer Care Number

For Loans, Credit Cards, Citibanking & Suvidha Account – Call on 1860 210 2484 (Local call charges apply)

For Citi Priority and Business – Call on +91 22 4955 2484, if calling from outside of India