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    Citibank Cashout or Overdraft

    Citibank offers various kinds of loans or credit facilities for that extra credit requirement that might pop up any time. While getting unsecured loans take time as it requires document verification, getting secured credit facilities is an easier job.

    Cashout and Overdraft are two such credit facilities. Both of these loans are secured. Credit is drawn on your existing mortgage in case of Cashout and on a collateral in case of an Overdraft.

    Citibank Cashout

    Cashout is a kind of term loan which lets a customer refinance their mortgage to get cash liquidity. A customer doesn’t have to sell off their property to get cash in hand. Cashout loan can be paid off in monthly installments over the agreed loan tenure.

    Citibank Overdraft

    Citibank also offers overdraft facilities, a credit line that allows you to access funds any time you need, at attractive rates of interest. Overdraft facilities from Citibank can help you take care of finances for a new car, a dream holiday or a new business venture.

    Benefits and Features of Citibank Overdraft/Cashout:

    Citibank Cashout and Overdraft come with many features and benefits such as:

    • Both are forms of secured personal loans.
    • These loans can be granted even if you don’t have a good credit rating.
    • These loans can be used for any personal requirements.
    • Both have a fast processing period and hence, can be used for emergency purposes.

    Besides the common one, Cashout and Overdraft have a few unique features that make them particularly desirable.

    Overdraft:

    • You can choose to have the credit line to be either in SGD or USD.
    • The amount of financing approved in Overdraft can go up to 100% of the collateral value.
    • With overdraft, only the amount of funds used is charged with interest.
    • Overdraft funds are disbursed using either a SGD or a USD Interest Checking Account.

    Cashout:

    • You get access to a wide range of interest rate packages.
    • There is fluidity to switch across SIBOR tenures.
    • Citibank provides immediate access to Mortgage Client Care, a dedicated team to address Cashout issues.

    Interest rates

    Citibank offers a wide variety of interest rate packages, ranging from 1/3/6/12 months SIBOR tenures for cashout.

    The Singapore Interbank Offered Rate (SIBOR) for the month of March, 2017, are:

    1 month SIBOR 0.7148%
    3 months SIBOR 0.9390%
    6 months SIBOR 1.2450%
    12 months SIBOR 1.3780%

    The temporary Overdraft fee is prevailing prime lending rate + 5%.

    Eligibility criteria:

    For overdraft facility:

    • An existing USD or SGD Interest Checking Account.
    • A time deposit, Singapore residential property or selected Investment Funds as collateral.

    For cashout facility:

    • An existing mortgage.

    FAQs

    1. What is required margin in case of Overdraft?
    2. Ans. Required Margin is minimum amount of margin required to support the outstanding loan amount. Required Margin is derived from dividing the outstanding loan amount with the percentage of Quantum of Finance minus the outstanding loan amount.

      RM = Outstanding Loan Amount/QOF % - Outstanding Loan Amount

    3. What happens if the value of my securities drop?
    4. Ans. Depending on what percentage of value erosion has occurred, the bank can take the following steps:

      • At 25% Margin Erosion of Required Margin, a Margin Call is triggered. You would be required to top up (Outstanding Loan Amount minus the Current Loan Limit) to bring the position back to the approved quantum of finance immediately.
      • At 50% Margin Erosion of Required Margin, a Force Sell is triggered. Citibank reserves the right to close out all outstanding positions without notice in such cases.
    5. How to apply for a Citibank Overdraft?
    6. Ans. For a new customer:

      • Complete the application form online and the bank will shortly get in touch with you.

      For an existing Citibank IPB customer:

      • Contact your Relationship Manager or call the 24-hour CitiPhone Banking at +65 6224 5757.
      • Complete the application form online and the bank will shortly get in touch with you.
    7. How do I apply for a Cashout?
    8. Ans. You can apply for a Cashout in 4 simple steps:

      • Step 1: Submit loan application along with the required documents.
      • Step 2: Receive the Letter of Offer (on approval of loan) and sign it.
      • Step 3: Meet the lawyer to execute mortgage and any other documents.
      • Step 4: You will receive the Loan Disbursement Letter within 7 business days from the date of completion.

    Explore the Products Offered By Citibank Singapore

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