Personal loans. Review on Citibank

Ever got tempted by institutions offering 'jaldi loans' ,processing within 48 hours,simple

documentation ?

There are a few things to be kept in mind before going in for any kind of a personal loan from a financial institution

What they say : Loans sanctioned within 48 hours

What they actually mean : Give us all documents we will verify them at our convenience and disbursement will commence after the process is over

This may take several days So Beware!!!

What they say : Take cash upto 75000 fast

What they actually don't tell you: Our interest rates under these schemes are

1%,2%,3% p.m yes it is per month not per annum

Plainly calculated you may end up paying upto 36% p.a and the selection criteria ?

not disclosed to customers.

What they say : simple documentation just 3 month's payslip or form 16 bank statement and proof of residence

What they actually mean :Our representative will check your residence ,give your contact number (both landline and mobile number) to our franchisees who will constantly call you up with their sweet talk about how you are a loyal customer and you get a top up of another 100000 at no extra cost.

If you have another loan outstanding your eligilibity gets reduced

You will give six blank signed checks as surety

Your admin fee,processing fees get deducted from sanctioned amount upfront and you pay interest on the total amount

What they say :Prepayment penalty is only 2%

What they actually mean:By the time you finish signing the loan agreement papers

you are giving us a carte blanche ie. full powers to increase the rates at our will

So 1 year down the line you will receive a pleasant notice that the rates now have gone upto 4%

(excluding service tax)

The poor customer does not have the time to read each and every line of the 50 page loan agreement document though he signs on each and every one of them

Any reliable fianancial institution will always be transparent with their interest rates and other hidden charges

but it is a real pity that hardly any bank (both PSU and Private sector) ever really have the customer's interest at heart