If you are looking for the ideal financial institution that will give you a great deal in helping you purchase your dream vehicle, well, Citibank may well be your perfect option. Citibank provides Singapore citizens, Permanent Residents and foreigners with car loans – both used car loans and new car loans – besides a range of other consumer banking products and services that include credit cards, personal loans, and more.
New car loans as well as used car loans come with affordable interest rates, with tenures stretching from 1 year to 7 years. There are several benefits that you can accrue if you choose Citibank for your car loan needs. Let us go ahead and look at the most prominent features, the benefits, the characteristics of Citi’s car loan product and the current interest rate at which the loan is being offered.
Citibank Car Loan Interest Rates
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||Effective Interest Rate (EIR)
Types of Citibank Car Loans
There are basically two types of car loans that Citibank offers:
Citibank New Car Loan
Here are some things you should know about Citibank New Car Loan:
- The Citibank New Car Loan can only be taken for the purchase of a new car.
- The loan amount for the vehicle is dependent on the vehicle’s Open Market Value (OMV). Basically, the amount is pegged to the car’s OMV.
- While applying for a new car loan from Citibank, it is highly advisable not to transfer ownership of the vehicle to your name until the loan amount is approved.
- The loan amount is dependent on the price of the car. Citibank does not finance the entire cost of the vehicle.
- If the price of the vehicle is greater than S$20,000, then 60% of the vehicle’s Open market Value will be financed by Citibank . If the price is lesser than S$20,000, 70% of the vehicle’s Open Market Value will be financed.
Citibank Used Car Loan
Are you thinking of applying for a used car loan from Citibank ? Here is exactly what you need to know.
- The price of the vehicle and the loan amount is dependent on the vehicle’s Open Market Value, as is the case with loans offered by most banks.
- The Open Market Value in the case of used cars is calculated by taking the age of the vehicle into consideration. This is done specifically to determine the LTV (Loan-to-Value) ratio. If the LTV value meets the bank’s financial regulatory framework, the loan will be approved by Citibank.
- In the case of used cars, just as is the case with new cars, the tenures can stretch from 1 year to 7 years.
Citibank Car Loan for Foreigners
As a foreigner, you can apply for a car loan from Citibank if you meet the eligibility parameters. You will have to submit your relevant documents including a copy of your Passport, your Employment Pass and Work Permit. You will also need to meet the minimum income eligibility criterion (as specified by the bank) and have at least two years of experience with a Singapore-based organization in order to be eligible to apply for a car loan from Citibank.
Eligibility Criteria to Apply Citibank Car Loan
In order to apply for a car loan from Citibank, the following eligibility parameters need to be met:
- The car loan applicant has to be over 21 years of age.
- The applicant must meet the minimum income criteria set by the bank in order to qualify for the car loan. This is applicable in the case of both, new car loans as well as used car loans.
- The applicant has to be a Singapore citizen, a Permanent Resident or a foreigner.
- All documents submitted have to be consistent in the information they present. Inconsistencies will result in the rejection of the loan application.
Documents to be submitted for Citibank Car Loan
The following are the documents that applicants need to submit in order to initiate their car loan application. This is applicable for both, new cars as well as used cars.
- Your application form fully completed.
- Proof of identity – front and back copy of your NRIC .
- Income documents include the following:
- Computerised payslips.
- CPF statement for the last 6 months OR
- Income Tax NOA (Notice of Assessment).
- Foreigners are required to submit their relevant documents including the employer letter obtained from the employer, and employment pass.
- Applicants purchasing a used car must submit their seller’s plate number and IC or their vehicle electronic log card.
How to apply for the Citibank Car Loan?
You can apply for the Citibank car loan by visiting the official Citibank website and filling out the online application form. Once you fill out the online application form, you will also have the provision of uploading your documents. One you upload your documents, an executive from Citibank will get in touch with you and help you take your loan application forward. He/she will also verify the authenticity of the information you’ve provided and subsequently process your loan application.
Once your application is processed, it will be reviewed by the bank’s credit team and will be approved if your application meets the bank’s internal credit norms.
Citibank Car Loan Calculator
The Citibank Car Loan Calculator enables you to determine your monthly payments that remain fixed through the course of your loan tenure.
Citibank Car Loan Features and Benefits
Choosing Citibank to finance the purchase of your vehicle comes with a host of features and benefits indeed. Let us look at the most prominent features and benefits that you can enjoy:
- Citibank offers loans for both, new cars and used cars.
- Used car loan interest rates are slightly higher than new car loans. As such, the used car market is growing quite strongly in Singapore.
- Citibank offers tenures that stretch from 1 year to 7 years. Depending on the vehicle you wish to purchase and the amount you wish to borrow, you can choose a tenure of your choice.
- Usually, the interest paid is higher for longer tenures and lesser for shorter tenures. The rate of interest, however, will be higher for shorter tenures and lesser for longer tenures.
- Citibank’s promotional offer on car loans will give you a 6-month interest-free period besides offering you a preferential interest rate of 2.78% p.a. The offer is valid for tenures that exceed a 2-year period.
- The loan amount is completely dependent on the vehicle’s Open Market Value. Also, as a car loan customer, you will not receive 100% financing for your vehicle.
- If the price of the car is greater than S$20,000, then only 60% of the vehicle’s Open Market Value will be financed through the Citibank loan. If the price of the car is lesser than S$20,000, 70% of the vehicle’s open market value will be financed by Citibank.
- What is the maximum loan tenure available?
The maximum tenure available for your car loan is 7 years.
- Does the interest remain fixed throughout the period of the loan tenure?
Yes. In the case of car loans, repayments remain fixed as the loan comes with a fixed interest rate offering.
- Will I get a Car Loan with a bad credit score?
Well, car loans are secured loans. So even if your credit score isn’t too good, the chances of approval are high.