Types of Citibank Loan on Credit Card
Citibank under its Paylite program offers two kinds of loans on Credit Cards. This feature of their credit cards helps cardholders make repayments easily.
Instant Loan – Instant Loan can be availed against the cash or credit limit of the Citibank Credit Card. The Bank permits such loan based on the profile of the cardholder and the relevant credit history. The bank at its sole discretion may approve a loan beyond the credit limit too.
Conversion to EMI – Large ticket purchases can be converted to EMIs. There are two ways in which one can convert their transactions to EMI.
- Outstanding Amount on the Card: the outstanding balance on your Citibank Credit Card can be converted to EMIs which helps you to make payments at lower rates of interest and also saves service charges
- Purchases above Rs.2500: While paying your bills using the Citibank Credit Card, you can convert your payments above Rs.2500 into convenient EMIs to be paid over a period of time
Further Read: Paying Your Credit Card Bill on EMI
Benefits of Citibank Loan on Credit Card
The primary objective of Citibank is to provide maximum benefits to its customers and the loan on credit card is a small step in the same direction
Instant Approval: The cardholder can avail loan on credit Card almost instantly on application if he is eligible and fulfils all the eligibility criteria.
No Documentation Required: Since the loan is approved on the Credit Card already owned by the applicant, the process has zero documentation formalities and hence faster implementation.
No Processing Fee: The Citibank Credit Card loan has no additional processing fee charges involved and is a part of your credit card facilities. However, processing fee may be applicable on a case to case basis based on bank’s internal guidelines.
Flexibility of Repayment: it is at the discretion of the applicant to decide the tenure for the loan. The Bank gives the option of choosing a time period ranging from 3 months to 48 months as is suitable to the cardholder.
Pre-payment Facility: if the cardholder wishes to repay the loan value before the completion of the tenure, he may do so by paying a charge on the outstanding amount.
How to Apply for Citibank Loan on Credit Card?
Applying for the Citibank loan on Credit Card is a simple cakewalk. Customer can choose either of the options mentioned below to avail a loan against their Citibank Credit Card.
- You can apply for loan against your credit card with a click by visiting the online portal of the bank by clicking here
- Click on Book Now then log in by entering your details
- Follow the on screen instructions
Loan on Call
- Citibank offers a Call Me facility to its credit cardholders
- You need to visit the online portal of the Bank by clicking here
- Provide the necessary details and tick the check boxes
- Click on the CALL ME option
You will receive a call from a representative of the bank. This instant call back service is available from Monday to Saturday from 10 am to 6:30 pm except on National Holidays and Public Holidays.
Citibank Loan on Credit Card Repayment
The EMI amount is billed with the monthly credit card statement of the cardholder. The amount is inclusive of the taxes. All dues should be cleared before the due date failing which the bank may discontinue the facility and penalties are also levied. In the event of non-payment of the minimum amount due, the card may become invalid. In this scenario the credit score is also negatively impacted.
Suggested Read: Loan on Credit Card
What are the eligibility criteria to apply for loan against Citibank Credit Card?
The main criterion is to be a Citibank Credit cardholder for at least one year at the time of application for the loan. The bank then decides the amount of the loan in view of the credit history of the cardholder.
What is the interest rate charged on Loan against Citibank Credit Cards?
The rate of interest varies from 12% to 24% depending on certain factors but the bank has the authority to decide up on the rate which is stated at the time of application.
What is the procedure for the foreclosure of loan against Citibank Credit Card?
You can call the customer care helpline if you decide to prepay your loan amount and process the payment. There will be pre-payment charges that you will have to pay.
When is conversion to EMI allowed?
Conversion to EMI can be done when you want to pay your outstanding credit card balance in EMIs or when you make big purchases, more than Rs. 2,500.
What is the processing fee for loan on Citibank credit card?
The processing fee is 2.5% of the amount or Rs. 300 whichever is higher.
Types of Loan on Citi Bank Credit Cards
PayLite program by Citibank allows you to regularize the repayment amount on your credit card as per your budget and have loan on the bank’s credit card accordingly. Big payments can be made light using the following options stated below.
Convert to EMI
It is further divided into two categories.
- Card outstanding
It allows you to convert the outstanding balance on your Citibank credit card into easy EMIs. You can now pay smaller amounts at much lower interest rates per month. It helps you save on service fee.
- Any purchase>2500
Shop big and pay small! With your Citibank credit card, you can further convert your purchase of above Rs 2500 into manageable EMIs. Tailor your repayment schedule with smaller interest rates on your EMIs.
Instant Loan allows you to loan against your Citibank credit card’s cash or credit limit. If your credit history allows, you are eligible to get a loan over and above your credit limit too. It offers flexible repayment tenure.
Eligibility criteria for Loan on credit card
- You should have a Citibank credit card from past one year
- You should have a good credit history in accordance with bank’s prerequisites
- Your Citibank savings account should have the required balance
- Loan amount is determined by the bank.
How to apply
Loan on Citibank Credit Card follows a simple process
Log on to Citibank internet banking using the IPIN and check for the eligibility criteria. If you match the bank’s requirements, you apply for loan instantly without prior submission of documents.
Go to Citibank credit card page and click on ‘Instant Loan On Your Card’. Enter your details (name, credit card number and mobile number) to receive a call back by clicking ‘Call me’. Under the ‘instant call back service’ you would receive a call from the bank’s representative from Monday to Saturday between 10:00am and 6:30 pm.
Why opt for Citibank Loan on Credit Card
- Easy and quick processing
- Save on higher interest payment to other banks
- Tenure option of 3, 6, 9, 12, 18 and 24 months available
- No documentation or guarantor required
- The process can be initiated and tracked through phone, mails or SMS.
- No processing fee
- The sanctioned loan amount is decided by the bank depending on borrower's credit history.
What is the Repayment Process
Your credit card bill will include the will include the EMI amount, education cess and service tax beginning from the immediate billing cycle. Pay the outstanding bill amount on or before the due date to avoid penalties from your bank account. Atleast, pay the minimum amount due to keep your credit card functional.