CITI Bank Business Loan
Citibank started its operations in India from the year 1902 onwards in Kolkata and is a major foreign investor in the country today. As a shareholder-promoter, Citibank has executed a crucial role in setting up vital intermediaries of the market including a credit bureau, depositories, and payment, and clearing institutions.
Features and Benefits of Citibank Business Loan
Citibank's 'CitiBusiness' Loan is designed to help entrepreneurs and small businesses with their working capital needs. Working capital loans, MSME loans, short-medium-long-term loans, overdrafts, and import and export finance, are among the business loans offered by Citibank. It offers both secured as well as unsecured business loans to cope with diverse customer needs. Citibank's business loan interest rate is determined by the applicant's profile and business requirements.
Given below are the various attractive benefits and features of a Citibank business loan.
- Quick disbursal of loan amounts ranging from INR 10 lakhs to 1.5 crores.
- The presence of online loan applications allows you to get a business loan within a week.
- Minimal documents and eligibility requirements.
- Flexible loan repayment tenure up to 10 years.
- Availability of prepayment to pay off your debt before the actual loan closure date.
- There's no need for a guarantor.
- Pre-closure, as well as part-payment options, are accessible after 12 months of loan repayment.
- Availability of doorstep service.
- A top-up loan and balance transfer option to meet financial obligations.
- E-approval is also available.
- Comparative business loan interest rates contrary to other lending firms.
Citibank Business Loan Eligibility Criteria
To qualify for a Citibank Business Loan, you must meet the following eligibility requirements.
- Applicants should be self-employed individuals/Proprietors/Private Ltd. Co./Partnership Firms associated with manufacturing, trading and services.
- Current business in practice for at least three years.
- The business loan applicant must be at least 21 years old at the time of loan request. Additionally, the applicant's age should not exceed 65 years at the end of the loan tenure.
Citibank Business Loan Fees and Charges
|Penal Charges||2.5% per month or 30% per annum on the defaulted amount|
|Processing Charge||At maximum 3% of the principal loan amount|
|Pre-payment Charges||3% on the outstanding loan amount|
|Charge for Cheque/DD/ECS/ACH event||INR 200 per event|
|Cheque / DD pick-up||INR 200 per event|
|Stamp Duty||Based upon state stamp duty|
Citibank Business Loan Interest Rates
Citibank Business Loan interest rates range from 13% to 20%. The particular interest rate an applicant will incur upon application depends on their eligibility and creditworthiness. Get in touch with your nearest Citibank branch to discover your case-specific interest rate.
Factors Affecting Citibank Business Loan Interest Rates
The Citibank interest rate is determined by evaluating the applicant's credibility. A couple of factors affect Citibank's business loan interest rates. To get the best possible deal in terms of interest, make sure you meet all the following factors.
Nature of Business
Your business domain, its products and services create a significant impact on the offered business loan interest rate. When the business deals in positive and profitable domains, the chances of getting approval at lower interest rates increase. But dealing with blacklisted firms may result in rejection of loan applications. If not, then you will get a Citibank business loan at a higher interest rate.
CIBIL score is said to be the key parameter to determine the applicant's credibility and offered interest rate. A good credit score above 700 helps unlock better business loan deals at lower interest rates. On the flip side, a poor credit score either incurs rejection or a high-interest rate.
Business Stability and Experience
Businesses running for over five years with better stability have more chances to get Citibank business loans at lower interest rates. Consistency in annual turnover and surging profits make you a trustworthy borrower with a healthy repayment capacity, making way for lower interest rates.
Getting approval at lower interest rates becomes convenient when you have a strong business turnover along with reliable annual income. On the other hand, having a business with little turnover increases the offered Citibank interest rates.
If you have good relations with your lender, you get the chance to negotiate interest rates based on previous timely payments and a good reputation. Having all such factors makes you creditworthy, enabling you to avail business loans at lower interest rates.
Credit scores and repayment history are somewhat linked to one another as timely payments help increase your credit score. So, like your credit history, your repayment history is also taken into account by Citibank during business loan approvals.
Types of Citibank Business Loans
Citibank offers different types of business loans to cope with diverse customer needs.
The overdraft facility is one of the best Citibank business loan options as it allows the borrower to utilise more funds than present in the account. This allows ventures to cope with their short-term financial obligations, which are usually higher than the available funds.
Features and Benefits
- Overdrafts product is best when it comes to the management aid in daily cash flows.
- You will be paying interest only on the utilised amount.
Citibank facilitates both domestic as well as international trade financing. The bank will offer credit to the importer so that it can make the payment while paying the exporter, i.e. credit settlement. To allow smoother corporate transactions as per global standards, the rate of interest is charged on the basis of LIBOR.
Features and Benefits
- Export Finance is available for exporters to cater to both Pre and Post Shipment procedures.
- Import Finance for importers.
- LIBOR-based rate of interest.
Short-term Demand Loans
Short-term Demand Loans allow businesses to borrow funds for a short time frame. It offers you the flexibility of repaying the borrowed amount on demand in full. You get access to the required funds to meet your short-term financial obligations.
Features and Benefits
- The maximum debt amount is restricted to the OD facility's sublimit.
- It comes with a repayment tenure of 6 months.
- Usually offered at a lower interest rate.
- You can avail of the loan amount in Indian currency or any foreign currency as per your need.
Citibank's Dropline Overdraft facility is a one-of-a-kind mix of Term Loans and Overdrafts. Businesses can use the dropline overdraft option to overdraw their current account up to a predetermined limit. Every month, this limit is reduced by a set amount. The borrower can then pay back any portion of the borrowed funds at any time. Only the amount overdrawn on the variable outstanding balance will be charged by the bank. However, interest is only charged at the month's end.
Features and Benefits
- The line amount gets reduced monthly by a fixed amount.
- A perfect blend of a Term Loan and Overdraft facility.
- Interest is charged only on the utilised funds.
Secured Term Loans
These loans are disbursed against a security or collateral for a specific time period. Usually, the loan amount depends upon the value of pledged assets. At maximum, 80% of the pledged asset value is offered as a loan. The assets that you can use as collateral are the property (residential or commercial), stocks, and debt books.
Features and Benefits
- The loan is offered for a fixed tenure against collateral.
- The maximum Loan to Value ratio that can be offered is 80% of the asset value.
Documents Required to Apply for Citibank Business Loans
Though paperwork requirements vary depending on the type of chosen Citibank business loan product, here is a list of documents that will be similar for every CITIbusiness product:
- Primary Applicant's PAN Card along with the organisation's PAN Card
- Copies of identity proofs (any of them):
- Aadhaar Card
- Voter ID Card
- PAN Card
- Driving Licence
- Copy of any of the documents as address proof:
- Aadhaar Card
- Voter ID Card
- Driving Licence
- Filled application form with the principal applicant's passport-size photos.
- Ownership proof of either a residence or an office.
- GST returns (the latest two in case applicable).
- Scanned copy of trading licences, statutory licences, along with other documents that denote business stability.
- Details of previously held business loans, their statement, along with the repayment record.
- Business continuity proofs like a bank statement, ITR, Certificate of Incorporation, Shops and Establishment Certificate, Sales Tax Challans, Partnership Deed, etc.
- P&L statement, balance sheet (CA audited), book debt and creditors-statement for the recent three months, periodic stock, and so on.
How Does the EMI Calculation Work for Citibank Business Loans?
The EMI calculation process for Citibank Business Loan is quick and easy. All you have to do is, enter the loan tenure, principal amount, applicable interest rate and repayment tenure.
As a result, you will get the equated monthly instalments that you will have to pay throughout the repayment tenure. For the same, you can either count on Urban Money's business loan calculator or compute EMI manually.
The mathematical formula for calculating monthly instalments is
EMI = P × r × (1 + r)n/((1 + r)n - 1)
Where P is the principal amount, r represents the applicable rate of interest, and n is the repayment tenure in months.
How Does Citibank Compare with Other Lenders?
The table below draws a comprehensive comparison between Citibank’s Business Loan interest rates and its competitors.
|HDFC Bank||11.90% – 21.35% p.a.|
|Axis Bank||14.25% – 18.50% p.a.|
|Kotak Mahindra Bank||16% – 19.99%|
|IDFC First Bank||14.50% onwards|
|IIFL Finance||11.75% – 25.75% p.a.|
|ZipLoan||1% – 1.5% per month (Flat ROI)|
|Lendingkart Finance||1.5% – 2% per month|
|Fullerton Finance||17% – 21%|
|ICICI Bank||18% onwards|
|RBL Bank||17.50% – 25% p.a.|
|Bajaj Finserv||17% p.a. onwards|
|FlexiLoans||1% per month onwards|
|NeoGrowth Finance||19% – 24% p.a.|
|Indifi Finance||1.5% per month onwards|
|Hero FinCorp||Up to 26% p.a.|
|Tata Capital Finance||19% p.a. onwards|
Citibank Business Loan Customer Care Number
If you want to speak with a bank executive about Citibank Business Loan, they are only a phone call away. On weekdays, the executives are readily available to answer your questions. Simply call the Citibank customer service line, which is 1860 210 2484.
Need Loan Assistance?
Connect with Business Loan Advisor Now!
Citi Bank's Other Products
Citi Bank's IFSC Codes
Business Loan By Other Banks
- Axis Bank Business Loan
- Bank of Baroda Business Loan
- ICICI Bank Business Loan
- HDFC Bank Business Loan
- Bajaj Finserv Business Loan
- IndiaBulls Business Loan
- Canara Bank Business Loan
- Union Bank of India Business Loan
- YES Bank Business Loan
- DHFL Business Loan
- Federal Bank Business Loan
- IndusInd Bank Business Loan
- State Bank of India Business Loan
- Punjab National Bank Business Loan
- IDFC FIRST Bank Business Loan
- Hero FinCorp Business Loan
- IDBI Bank Business Loan
- Digikredit-SME Corner Business Loan
- Kotak Bank Business Loan
- Loantap Credit Products Private Limited Business Loan
- Poonawalla Fincorp Limited Business Loan
- Ujjivan Small Finance Bank Business Loan
- Shriram Urban Co Operative Bank Limited Business Loan
- Muthoot Finance Ltd Business Loan
- Piramal Housing Finance Business Loan
- Fullerton India Business Loan
- RBL Bank Business Loan
- Standard Chartered Bank Business Loan
- Tata Capital Financial Services LTD Business Loan
- Tata Capital Housing Finance Limited Business Loan
- Housing Development Finance Corporation Business Loan
- IIFL Finance Business Loan
- DCB Bank Business Loan
- Edelweiss Financial Services Business Loan
- INDIFI Business Loan
- INTELLEGROW Business Loan
- Bank of India Business Loan
- Aditya Birla Finance Limited Business Loan
- HDFC Sales Business Loan
- Capri Global Business Loan
- Capital First Ltd. Business Loan
- NeoGrowth Business Loan
- L&T Finance Business Loan
- UGRO Capital Business Loan
- Deutsche Bank Business Loan
- Clix Capital Business Loan
- FT Cash Business Loan
- HSBC Business Loan
- Lending Kart-Nbfc Business Loan
From refinancing to reducing your interest, we have the answers right here.
What is the minimum turnover required for a Citibank Business Loan?
To apply for a Citibank Business Loan, the minimum turnover of the organisation must be somewhere INR 75 lakhs.
Who can take a Citibank Business Loan?
Business owners, partnership firms, private limited companies, limited liabilities or salaried individuals can take a business loan to expand their business.
Does Citibank check for CIBIL score for business loans?
Yes, Citibank takes the CIBIL score into consideration for determining an applicant’s creditworthiness. Moreover, it allows the lenders to decide what loan amount can be approved at what interest rate. Thus, it is recommended to start maintaining your credit score for a year before applying for a business loan.
Does Citibank provide business loans at the best rate?
Yes, Citibank offers business loans at competitive interest rates starting from 13 percent.
What are the benefits Citibank provides on a business loan?
Citibank provides a couple of benefits through the business loan, including competitive interest rate, quick processing, minimal documentation, easy disbursal, MSME-supported business loans, etc.
What is the minimum and maximum business loan amount offered by Citibank?
Citibank offers business loans ranging from INR 10 lakhs to INR 1.5 crores.
Get your latest Credit Score, FREE
Get in-depth knowledge about all things related to loans and your finances
RBI Repo Rate 2022 Hike For the Fourth Consecutive Time
The Reserve Bank of India (RBI) increased the Repo Rate by 50 basis points, making it clock at 5.90%. In the previous five months, interest rates rose by 190 basis points, making this the fourth consecutive increase i
Buying a Property: Get Familiar with Circle Rate and Market Rate
Home Loan Insurance
Picture your child running to you with a landscape drawing of your home amidst the mountains where the sun shines high and bright. You smile as a home loan allows the dream of owning a house to come true, and the home