Business loans are widely sought after for a variety of reasons – business expansion, purchase of machinery and equipment or a larger office space, business loans help you reach your financial goals. Getting a business loan has become much easier with the growing list of bankers who are willing to support businesses that have a stable income or a proper business plan. With the help of a proper business loan, you are able to set up your business in a more effective way.
Citibank is one of the top financial institutions that offer business loans to businesses in order to address immediate needs and expenses. Citibank has been in India for over a century and is a prominent bank in the Indian financial industry. It has been the awardee of the ETs Best Brands Survey 2015 for being the most trusted foreign brand for the fifth consecutive year. It also bagged the Best Consumer Digital Bank in India for the seventh consecutive year in 2015.
Citibank offers a wide range of financial services and products such as consumer banking, credit banking, business banking and investing, securities brokerage and wealth management. Citibank is also a big philanthropic company that helps to support economically disadvantaged people in India under a special grant funded by Citi Foundation.
Overview Of Citibank Business Loan
Citibank Business Loans are the best option available for businesses to maximize their business potential. By bringing cost efficient solutions to business thanks to their global proficiency across over a hundred countries, Citibank Business Loan offers a world-class banking platform. Their superior customer service offers highly trained relationship managers that are dedicated to meet every customer’s business objectives.
Why Pick Citibank Business Loan?
Citibank offers a variety of business loan options such as overdrafts, trade finance, short-term demand loans, drop line overdrafts and secured term loans. Each of these business loan types has features that are suited for all business needs. Citibank business loans have LIBOR denominated rates for Trade finance lines that help your business gain the competitive edge on a global platform. Not only that Citibank finances up to 80% of the collateral value for business that have property that can be kept as collateral. Citibank also offers business loans for a shorter time period of up to six months that can be availed at the lowest rate of interest.
Features of Citibank Business Loan
Citibank business loans have the following benefits and features:
- Trade Finance –Citibank business offers trade finance services that are tailored for the evolving needs of commercial dealings and aims to cover/reduce the risks involved with such trade. It helps businesses to remain competitive in the global trade platform and help both the buyer and seller to maximize their business. Citibank’s trade services offer a number of domestic trade solutions as well as export and import services. Citibank also issues letters of credit and guarantee by bank and also send out email notifications on all trade dealings.
- Overdrafts – Citibank business offers overdraft facility to manage daily cash flows in a more efficient and stress free way. And the benefit of the Citibank business overdraft facility is that you are charged interest only on the amount that you use.
- Short-Term Demand Loans –As an extension of the overdraft facility, Citibank also offers short-term loans upto six months that are available at low rate of interest. These short-term demand loans can be availed in Indian currency or any foreign currency denominated rates.
- Drop line Overdrafts – Citibank also offers drop line overdraft facility, which is a rare amalgamation of term loan and overdraft facility. While the interest is charged only on the amount utilized, the line amount gets reduced every month by a set amount.
- Secured Term Loans – As the name suggests, secured term loans can be availed upon submission of a collateral against the loan. The collateral can be anything substantial such as a property or stock and book debts. The loan to value for collateral as property can be as high as 80%.
Benefits of Applying Citibank Business Loan on Letzbank
Letzbank is a platform where you can check your business loan eligibility, rate of interest,a lot of other personalized services and most importantly, apply for a business loan online. You can check and compare different loan options and apply directly for the best loan offer. Our online application forms are simple to use and gets you access to Instant Quotes from banks. With a plethora of services all under one roof, Letzbank is the one stop website for all loan requirements. And all our services are absolutely free of charge too!
Citibank Business Loan Eligibility
To be eligible for a Citibank business loan, any business that is set up as a sole proprietor, partnership or a private limited company can benefit from the loan. However, the annual turnover should be a minimum of Rs. 44 lakhs per annum. The age criteria are set to a minimum age of 21 years with a maximum of 60 years. The business establishment must be atleast three years old.
Citibank Business Loan Documentation Process
Citibank business loan requires the following documents for loan processing:
- Proof of Identification – Passport, Driving License, Voter ID
- Residence Proof – Electricity bill, phone bill
- Age Proof – Birth certificate, secondary school passing certificate
- Last six months bank statement or passbook
- Latest Income Tax Return that should have income calculation
- Audited Balance Sheet or Profit & Loss account statement for the past two years
- Highest educational qualification certificate
Citibank Business Loan Interest Rates
- Interest rates are not applicable. However, whenever there is a non-payment on the monthly EMI, a penalty rate of interest applies. The penalty rate of interest is charged at 2% on the current interest rate on the outstanding loan for the defaulted period.
- There are other charges that one must know about before availing the loan. The pre-payment charges are up to 4% of the outstanding amount. There is a booking fee of 1% of the sanctioned loan amount that is either paid at the time of loan processing or can be subtracted from the total disbursed amount.
- The pre-closure charges upon full pre-payment of the business loan are 4% of the total outstanding amount.