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Citibank started its operations in India from the year 1902 onwards in Kolkata and is a major foreign investor in the country today. As a shareholder-promoter, Citibank has executed a crucial role in setting up vital intermediaries of the market including a credit bureau, depositories, and payment, and clearing institutions.
Citibank’s ‘CitiBusiness’ Loan is designed to help entrepreneurs and small businesses with their working capital needs. Working capital loans, MSME loans, short-medium-long-term loans, overdrafts, and import and export finance, are among the business loans offered by Citibank. It offers both secured as well as unsecured business loans to cope with diverse customer needs. Citibank’s business loan interest rate is determined by the applicant’s profile and business requirements.
Given below are the various attractive benefits and features of a Citibank business loan.
To qualify for a Citibank Business Loan, you must meet the following eligibility requirements.
| Particulars | Associated Charges |
| Penal Charges | 2.5% per month or 30% per annum on the defaulted amount |
| Processing Charge | At maximum 3% of the principal loan amount |
| Pre-payment Charges | 3% on the outstanding loan amount |
| Charge for Cheque/DD/ECS/ACH event | INR 200 per event |
| Cheque / DD pick-up | INR 200 per event |
| Stamp Duty | Based upon state stamp duty |
Though paperwork requirements vary depending on the type of chosen Citibank business loan product, here is a list of documents that will be similar for every CITIbusiness product:
Citibank Business Loan interest rates range from 13% to 20%. The particular interest rate an applicant will incur upon application depends on their eligibility and creditworthiness. Get in touch with your nearest Citibank branch to discover your case-specific interest rate.
The Citibank interest rate is determined by evaluating the applicant’s credibility. A couple of factors affect Citibank’s business loan interest rates. To get the best possible deal in terms of interest, make sure you meet all the following factors.
Your business domain, its products and services create a significant impact on the offered business loan interest rate. When the business deals in positive and profitable domains, the chances of getting approval at lower interest rates increase. But dealing with blacklisted firms may result in rejection of loan applications. If not, then you will get a Citibank business loan at a higher interest rate.
CIBIL score is said to be the key parameter to determine the applicant’s credibility and offered interest rate. A good credit score above 700 helps unlock better business loan deals at lower interest rates. On the flip side, a poor credit score either incurs rejection or a high-interest rate.
Businesses running for over five years with better stability have more chances to get Citibank business loans at lower interest rates. Consistency in annual turnover and surging profits make you a trustworthy borrower with a healthy repayment capacity, making way for lower interest rates.
Getting approval at lower interest rates becomes convenient when you have a strong business turnover along with reliable annual income. On the other hand, having a business with little turnover increases the offered Citibank interest rates.
If you have good relations with your lender, you get the chance to negotiate interest rates based on previous timely payments and a good reputation. Having all such factors makes you creditworthy, enabling you to avail business loans at lower interest rates.
Credit scores and repayment history are somewhat linked to one another as timely payments help increase your credit score. So, like your credit history, your repayment history is also taken into account by Citibank during business loan approvals.
Citibank offers different types of business loans to cope with diverse customer needs.
The overdraft facility is one of the best Citibank business loan options as it allows the borrower to utilise more funds than present in the account. This allows ventures to cope with their short-term financial obligations, which are usually higher than the available funds.
Citibank facilitates both domestic as well as international trade financing. The bank will offer credit to the importer so that it can make the payment while paying the exporter, i.e. credit settlement. To allow smoother corporate transactions as per global standards, the rate of interest is charged on the basis of LIBOR.
Short-term Demand Loans allow businesses to borrow funds for a short time frame. It offers you the flexibility of repaying the borrowed amount on demand in full. You get access to the required funds to meet your short-term financial obligations.
Citibank’s Dropline Overdraft facility is a one-of-a-kind mix of Term Loans and Overdrafts. Businesses can use the dropline overdraft option to overdraw their current account up to a predetermined limit. Every month, this limit is reduced by a set amount. The borrower can then pay back any portion of the borrowed funds at any time. Only the amount overdrawn on the variable outstanding balance will be charged by the bank. However, interest is only charged at the month’s end.
These loans are disbursed against a security or collateral for a specific time period. Usually, the loan amount depends upon the value of pledged assets. At maximum, 80% of the pledged asset value is offered as a loan. The assets that you can use as collateral are the property (residential or commercial), stocks, and debt books.
The EMI calculation process for Citibank Business Loan is quick and easy. All you have to do is, enter the loan tenure, principal amount, applicable interest rate and repayment tenure.
As a result, you will get the equated monthly instalments that you will have to pay throughout the repayment tenure. For the same, you can either count on Pluto Money’s business loan calculator or compute EMI manually.
The mathematical formula for calculating monthly instalments is
EMI = P × r × (1 + r)n/((1 + r)n – 1)
Where P is the principal amount, r represents the applicable rate of interest, and n is the repayment tenure in months.
The table below draws a comprehensive comparison between Citibank’s Business Loan interest rates and its competitors.
| Banks/NBFCs | Interest Rates |
| Citibank | 13% |
| DHFL | 17% p.a. |
| HDFC Bank | 11.90% – 21.35% p.a. |
| Axis Bank | 14.25% – 18.50% p.a. |
| Kotak Mahindra Bank | 16% – 19.99% |
| IDFC First Bank | 14.50% onwards |
| IIFL Finance | 11.75% – 25.75% p.a. |
| ZipLoan | 1% – 1.5% per month (Flat ROI) |
| Lendingkart Finance | 1.5% – 2% per month |
| Fullerton Finance | 17% – 21% |
| ICICI Bank | 18% onwards |
| RBL Bank | 17.50% – 25% p.a. |
| Bajaj Finserv | 17% p.a. onwards |
| FlexiLoans | 1% per month onwards |
| NeoGrowth Finance | 19% – 24% p.a. |
| Indifi Finance | 1.5% per month onwards |
| Hero FinCorp | Up to 26% p.a. |
| Tata Capital Finance | 19% p.a. onwards |
If you want to speak with a bank executive about Citibank Business Loan, they are only a phone call away. On weekdays, the executives are readily available to answer your questions. Simply call the Citibank customer service line, which is 1860 210 2484.
To apply for a Citibank Business Loan, the minimum turnover of the organisation must be somewhere INR 75 lakhs.
Business owners, partnership firms, private limited companies, limited liabilities or salaried individuals can take a business loan to expand their business.
Yes, Citibank takes the CIBIL score into consideration for determining an applicant's creditworthiness. Moreover, it allows the lenders to decide what loan amount can be approved at what interest rate. Thus, it is recommended to start maintaining your credit score for a year before applying for a business loan.
Yes, Citibank offers business loans at competitive interest rates starting from 13 percent.
Citibank provides a couple of benefits through the business loan, including competitive interest rate, quick processing, minimal documentation, easy disbursal, MSME-supported business loans, etc.
Citibank offers business loans ranging from INR 10 lakhs to INR 1.5 crores.