Need fast money? The Citibank Ready Credit line of credit could solve your monetary problems in an effective manner. With this fast and secured credit line, you could borrow up to 4 times your monthly income. Interest rate could be as low as 20.95% p.a. Let us now look at the features and benefits of this product in detail in the following section:
Here are the most important features of this loan product:
High Borrowing Ceiling: You can borrow up to 4 times your monthly income, subject to conditions. So, if your monthly income is S$2,500, you could expect a loan of up to S$10,000. However, the bank reserves the sole discretion of determining the loan quantum. You’ll, however, have the freedom to utilise credit up to the credit limit approved for your Ready Credit account.
High Interest Savings: Interest rates on this loan start at 20.95% p.a. which is comparatively lower than other banks’ credit card interest rates that are usually upwards of 25% p.a.
Debt Roll-Over Facility With Minimum Monthly Payment: With this credit facility, there is no need for a fixed monthly payment. Simply pay the minimum amount due, as decided by the bank, to roll over the debt and to continue redrawing from the credit available. Here’s the minimum amount due that you’ll be charged:
|Outstanding Balance||Minimum Payment Due|
|Less than S$45||Full outstanding balance|
|S$45 or more||3% of the outstanding balance, subject to a minimum of S$45|
Multi-Utility Facility: You may use your Ready Credit line of credit for any of the following services:
Convenient Repayment Options: You can make monthly payments using any of the following modes available:
Hassle-Free Balance Transfer Facility: If you wish to lower your interest commitments and financial burden, simply transfer outstanding balances from your high-interest credit cards or lines of credit to this Ready Credit account. The process is fast and simple.
Statement on a Monthly Basis: The bank may send you a statement of account at the end of each month. It would help you know your transactions, outstanding balances, and fees and charges applicable.
Interest on this loan starts from 20.95% p.a. Interest is calculated on a daily basis on the outstanding debit balance. If you have an outstanding balance on your line of credit by the end of a month, a minimum charge of S$5 will have to be paid.
To put things into perspective, let us make an illustration here:
Let us assume that you have an outstanding balance of S$10,000 on your credit card which charges a standard rate of 26.9% p.a.
Then, your interest charges for 1 month or 30 days would be around S$221.10 (=26.9/100x10,000/365x30).
Let us now assume that you have the same quantum of due in your Ready Credit account. Considering interest is charged at 20.95% p.a., your interest charges for 1 month or 30 days would be S$172.19 (=20.95/100x10,000/365x30).
So, every month, you can save up to S$48.91 (=221.10-171.19) or almost 23% (=48.91/221.10x100%) by using this interest-saving line of credit instead of a card.
[Disclaimer: The numbers used in this example are for illustrative purposes only. They could be different from actual results.]
You could even use the interest savings calculator available on the bank’s website to calculate your monthly savings.
You may have to pay the following fees and charges on this line of credit:
Here are some of the things that you should wrap your head around before making an application:
You have to satisfy the following conditions in order to be eligible for this loan:
To learn more about the eligibility criteria and the supporting documents required, please click here.
Have you already made up your mind about applying? If so, you would probably want to know about the channels available. Citi offers you 3 distinct modes for applying. They are:
If you want the ability to borrow anytime and anywhere without having to pay interest rates as high as cards, you could consider this loan. It’s fast, safe, and extremely handy. To know more about the other personal loan options from Citi, click here.