Citibank Personal Loan EMI Calculator 2021

Citibank Personal Loan is an ideal way of getting extra cash in case of an emergency or planned expenditure without compromising your savings or affecting your monthly budget. But it is always good practice to borrow within your means and this requires planning your loan EMI expenses ahead of time. In the following sections, we will discuss Citibank personal loan EMI calculation method, different ways to pay EMIs, key factors affecting EMI, etc.

How Citibank Personal Loan EMI Calculator Functions

EMI stands for Equated Monthly Installment and is the amount that a borrower has to pay during the loan tenure to repay the personal loan. Citibank’s personal loan EMI calculator lets you calculate the EMI payable on your personal loan even before you apply for it and choose a loan amount and tenure that suits your budget. However, instead of opting for a bank specific calculator, you can also use the Paisabazaar personal loan EMI calculator to instantly compute your EMIs for free. All you need to do is enter your loan amount, interest rate and tenure and your estimated EMI payout will be displayed immediately.

• Loan Amount: It refers to the principal amount that you borrow as your personal loan. A higher loan amount usually translates into higher EMI payouts. Citibank offers personal for amounts as low as Rs. 1 lakh to as high as Rs. 30 lakh.
• Loan Tenure: It refers to the loan repayment period. Citibank personal loan repayment tenure can range between 12 months to 60 months which you can choose as per your convenience. Generally a longer repayment tenure leads to lower EMI payouts and vice versa.
• Interest Rate: It is the rate at which interest is calculated on the amount borrowed. Citibank personal loan interest rate starts at 9.99% p.a. A higher interest rate generally results in an increase in the EMI payout. The EMI payable also depends on the method of interest calculation adopted by the lender.

Personal Loan EMI Calculation Formula

The EMI payable also depends on the interest calculation method used by the lender. Let’s look at the 2 key methods of interest calculation and the way they affect the monthly EMI payout.

1. Flat Rate Method: As per this method, interest is computed on the entire loan amount initially borrowed. As a result, the EMI amount remains unchanged throughout the loan tenure. On the basis of this method, the formula for EMI calculation is:

EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months

For example: Mr. Lal took a loan of Rs. 10 lakh at a flat rate of interest of 9.99% for a period of 12 months.

Interest for 1 year = 9.99% of Principal = 9.99% of Rs. 10 lakh = Rs. 99,900

Total interest payable over the loan tenure = Rs. 99,900

EMI = (Rs. 10 lakh + Rs. 99,900)/12 = Rs. 91,658

2. Reducing Balance Method: This method involves calculating interest only on the outstanding loan principal amount and not on the entire loan amount initially borrowed. Thus, it helps you save on the total interest payout of the loan. The EMI calculation formula on the basis this method is as follows:

EMI by Reducing Balance Method =  [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]

Here,

P  refers to the Principal loan amount

R = Rate of interest on a monthly basis = Annual interest rate/12

N = Loan repayment tenure in months

For example: Mr. Dhir took a loan of Rs. 10 lakh at a reducing balance interest rate of 9.99% for a period of 12 months.

Monthly interest rate = Annual interest rate/12 = 9.99/12 = 0.8325% per month

Monthly EMI payout = [10,00,000x 0.008325 x (1+0.008325)^12 /(1+0.008325)^(12-)] = Rs. 87,911

Monthly EMI Payment Comparison of Popular Banks in India

A comparison of the EMI payments of some popular banks in India for different loan amounts, tenure and interest rates is given below:

Citibank Personal Loan EMI Calculation

Citibank uses the reducing balance method to calculate the EMI payable on its personal loans. The table below gives various possible EMIs with different combinations of loan amount, tenure and interest rate.

How to Pay Citibank Personal Loan EMI?

You can pay your Citibank personal loan EMIs via any of the following payment modes:

• Standing instruction on Citibank account: This feature allows automatic deduction of the EMI amount on the due date from your Citibank savings/current/salary account.

• ECS/ACH: With ACH (Automated Clearing House, earlier known as ECS) EMI payments are made by automatic deduction of the EMI amount from your non-Citibank account at the end of the monthly cycle. To avail this service you are required to provide a signed mandate to Citibank authorizing the transfer of funds from your non-Citibank account.

• E-PAY: E-Pay option on the Citibank website lets you pay your Citibank personal loan EMIs online through your account with a bank other than Citibank.

• NEFT: The NEFT option allows you to get funds credited to your Personal Loan Account even when you pay through a non-Citibank account.
  

Factors Affecting Citibank Personal Loan EMI

The following are the key factors which affect Citibank personal loan EMI:

• Loan Amount: This refers to the principal amount borrowed. A higher loan amount usually results in higher EMI payouts, provided the loan tenure and interest rate are kept constant.
• Loan Tenure: It refers to the loan repayment tenure. A longer tenure usually leads to lower EMI payouts and vice versa. However, an increase in the loan tenure can lead to an increase in the total interest payout.
• Interest Rate: It is the rate at which the interest is charged on the amount borrowed. A higher interest rate usually results in higher EMIs.
• Interest Calculation Method: The interest calculation method used by the lender also affects the EMI amount. Generally EMIs calculated using the reducing balance method are slightly lower than those calculated using the flat rate method.

FAQs

Q1. How long can I take to repay my Citibank personal loan?

You can repay your Citibank personal loan over a period of 12 to 60 months.

Q2. Is it possible to prepay my personal loan?

Yes you can prepay your loan by either opting for full prepayment or partial prepayment. However, there may be certain additional charges involved in case you decide to prepay your Citibank personal loan.

Q3. When is my EMI payment due date?

The EMI payment due date for Citibank personal loans is on the 1st of every month, following the month of loan disbursement. 

Q4. Does the bank levy any late payment charges in case of delays in EMI payments?

No, Citibank does not charge any late payment charges in case of delays in EMI payments.

Q5. How to autopay my Citibank personal loan EMIs?

You can use the Standing Instruction (SI) or ECS/ACH (Automated Clearing House) facility to autopay your Citibank personal loan EMIs.