Urban Money

CITI Bank Business Loan

CITI Bank
4.5

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.

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Urban Money

Business Loan Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

CITI Bank Business Loan Interest Rate

12% - 18%

Up to 2%

₹1L - ₹30L

Tenure(1 - 5 Years)

Details

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

Particulars Associated 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

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.

Annual Turnover

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.

Good Relationship

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.

Repayment History

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.

Overdrafts

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.

Trade Finance

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.

Dropline Overdrafts

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
    • Passport
    • Voter ID Card
    • PAN Card
    • Driving Licence
  • Copy of any of the documents as address proof:
    • Aadhaar Card
    • Passport
    • 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.

Banks/NBFCs Interest Rates 
Citibank 13%
DHFL 17% p.a.
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.

FAQs

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.

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