Citibank's Ready Credit PayLite is a great option for individuals seeking a short-term personal loan. The loan offers the lowest interest rates for 1 year loans, with effective interest rates (EIR) of 8.5% for new customers and 11% for existing customers.
|Summary of the Citibank Ready Credit Paylite Personal Loan|
|Lowest short-term interest rates for Personal Loans: 8.5 - 11% EIR|
|No processing fee|
|Low minimum loan amount: S$1,000|
|Promotion: New customers receive lower interest rates 8.5 - 10.5% EIR|
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What Makes the Citibank Ready Credit Paylite Personal Loan Stand Out to Borrowers
Citibank Ready Credit Paylite loan is a great financing option for individuals seeking a small short-term personal loan. Citibank charges the lowest effective interest rates for loans of 1 and very competitive rates for 2-year loans (8.5 - 11%), making it a great option for your short-term personal loan needs. Additionally, it offers discounted rates to new customers (8.5%), giving it the cheapest EIR for 1 to 3 year loans for these borrowers. Not only that, Citibank's Ready Ready Credit Paylite's minimum loan amount of S$1,000 is lower than other banks that tend to require minimum loans of at least S$5,000.
|Loan Tenure (Years)||Annual Rate||Fee||Effective Interest Rate||Monthly Instalment*||Total Cost*|
|*Assuming loan of S$10,000, total cost includes impact of promotions|
Some of the most prominent downsides to the CitiBank are that it features more expensive long-term interest rates and slightly slower cash disbursement than other banks. Citibank Paylite Personal Loans with tenures of 4 or 5 years have effective interest rates of 10.5% to 12.25%, compared to HSBC which charges 7 to 9% EIR. Finally, Standard Chartered's current cashback promotion, which offers 1 - 1.5% of approved loan amount (up to S$1,088) plus S$50 cashback to online applicants, presently makes Citibank's personal loan the second cheapest 1-year personal loan, despite having the best EIR.
Who Can Apply: Eligibility Criteria
Singaporeans and Singapore Permanent Residents below age 62 with annual incomes of at least S$30,000 are eligible for Citibank Ready Credit PayLite. Citibank's best rates are offered exclusively to new customers. Existing Citibank credit card or Ready Credit holders are charged higher interest rates for short-term loans, making it a less attractive option for these borrowers. While these rates are still competitive to offers from other banks, they are not always the best rates available.
|Tenure (Years)||New Customers||Existing Citibank Credit Card or Ready Credit Holders|
Other Charges and Fees
The Citibank Ready Credit Paylite loan does not charge a processing fee, which helps keep the total cost of borrowing competitive. However, Citibank does charge a cancellation fee of S$100 or 3% of the outstanding unbilled principal amount, whichever is higher. This fee is quite similar to those charged by other banks.
How to Apply: Application Process
Citibank's personal loan application process requires that you provide your personal contact, financial and employment information. Citibank Ready Credit Paylite offers 1 hour loan approval. Cash is disbursed within 3 to 5 days of approval; either at a branch location or directly into your preferred bank account.
- Completed and signed Letter of Instruction
- Photocopy of NRIC (front and back)
- CPF statement (past 12 months) or Latest Income Tax Notice of Assessment
- 2 years' Income Tax Notice of Assessment and last 3 months' bank statements (Self-employed)