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Citibank Personal Loan - 2.9% fixed for 2 years and $129 Set-up Fee

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Citibank Personal Loan - 2.9% fixed for 2 years and $129 Set-up Fee
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[Deactivated] on 02/07/2014 - 13:14 citibank.com.au (5151 clicks)
Last edited 08/08/2014 - 03:59 by 1 other user

Ok OzBargainers…

I am not a financial advisor, so take up the offer at your own risk.

Simply put:
- Borrow up to $60k (on the TV, I saw $48k. And on their calculator, it max's out at $48k)
- 2.9% interest rate
- 2 year term
- $129 set up fee

BIG NOTE: After 2 years, the interest rate goes to 19.49% variable (today's current rate). I guess they have to make money somehow/somewhere.

However, if you had a mortgage on a PPR paying 5%, you could effectively borrow the Citibank money and dump it in there for 23 mths, then take it back out to close off the Citibank loan. This will save you a bit of dough to fund your bargain purchases (think of all the Cree torches, batteries, and useless stuff we can all buy…LOL)

Another scenario is you take the money and dump it into an ING Direct savings account and pocket the difference. Please note that you will need to pay tax on this.

My 2 cents. Everyone has a different set of circumstances. Don't be a mis-informed OzBargainer and do your research to see if the above works for you.

EDIT: The personal loan being offered is not a maturity loan, so by the looks of it, it will require monthly (?) payments, so factor that in also. My examples above are very simplistic ideas.

EDIT 2: After reading the Fine Print, if you are approved for a $60k line of credit, only the first $48k of it will be eligible for 2.9% (That explains the discrepancy between the $60k and the $48k). The balance $12k will be charged at 19.49%. Since it is a line of credit, just don't take more than 80% of the loan and you "shouldn't" be stung with the 19.49% interest rate. I still think it is a good deal by getting $48k at 2.9% with monthly P+I repayments to help you with your PPR mortgage - That's what I will be doing.

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  • ChickenTalon on 02/07/2014 - 13:22
    +1

    This https://www.ozbargain.com.au/node/151269 seems like a tidy place to park money if you can. 16 months interest free for a balance xfer, low card fees.

    Another scenario is you take the money and dump it into an ING Direct savings account and pocket the difference. Please note that you will need to pay tax on this.

    Moronic idea for anyone with other sources of income. A lot of people would be NET losing money doing this. Tax and the annual fee would erase any gains. ING is 4.35% welcome rate (4 months) then 2.75%

    however, if you have a home loan and can manage your money well, this might be an OK place to park 60k. But will require a lot of careful management with the monthly repayments back on this loan.

    • [Deactivated] on 02/07/2014 - 13:29
      +5

      What's so moronic about it? Say you can get $60k based of your 6 digit salary (which I would assume it will have to be due to lending criteria for such a sum) and taxed at 40% for every gross dollar made. You can also deduct the interest on the loan as an expense, so the difference is 0.85% (on a ING 3.75% rate) gross profit before a tax rate of 40%..Still a profit! I don't have my calculator here, but on simple interest, 0.85% of $60k = $510, minus the once off fee of $129 = $381 gross = $228 net (at a 40% tax rate) in the 1st year….

      $228 is a lot of 30c cones, batteries and Cree torches…

      Note: do your own research.

      • ryang on 02/07/2014 - 13:33
        +6

        $228.. And a $60k loan against your name. Along with all of the credit card "bargains", I'd hate to see some OzB credit reports!!

        • [Deactivated] on 02/07/2014 - 13:35

          As I said, not for everyone. Best to chuck it into your PPR home loan. That's what I'll be doing.

        • ws83jsb3948d on 02/07/2014 - 22:03
          +1

          2.9% is really nice. But a $60k personal loan against your name will not do you any favors if you plan to buy your first home. My brother took out a $40k personal loan and he has been rejected from applying for a home loan because of that.

      • ChickenTalon on 02/07/2014 - 13:33
        +4

        have a closer look at your calcs or see mine below . Your calcs are totally wrong if you want to use the loan to put money into an ING account and could cost people money

        https://www.ozbargain.com.au/node/151314#comment-2091412

        and really, someone negged that?!?! i'm trying to stop people making a big mistake. To take advantage of this deal you need an income. you would need to be paying tax on the interest you earned from ING ING is 4.35% welcome rate (ONLY 4 MONTHS) then 2.75%

        • rhino015 on 02/07/2014 - 16:17
          +1

          Good point. The ING saver account may not be ideal because of it dropping to 2.75% after 4 months, which is lower than the interest on this loan.

          But if you lock it away in a term deposit, you may be able to get something closer to 4% over 23 months since that's a fairly long time to lock in a term deposit. I really don't know that much about current term deposit rates but i just did a quick google and it looks like you can get up to 3.8%. That'd give you a positive 0.9% difference.

          It would depend on how the compounding works though. If the loan and the term deposit compound very differently (probably realistically not that different) it could result in differences.

        • ChickenTalon on 02/07/2014 - 16:19

          Sorry rhino015. Still wouldn't work with a term deposit. the citibank loan needs repayments over the 2 years.

          You need to repay a portion of the amount you've borrowed each month, not the full amount at the end of 2 years.

      • nicksinternet on 02/07/2014 - 20:32
        +2

        All that for $228? no thanks.

    • clandestino on 02/07/2014 - 13:36

      Hi ChickenTalon. Obviously I understand the logic of taking out this loan and sticking it straight into the PPR mortgage. Pretty clear benefit.

      But I don't understand your reference to the ANZ card and "parking money" - can you elaborate?

      • ChickenTalon on 02/07/2014 - 13:38
        +2

        If you've got an existing debit on a card (not a house mortgage or car loan ect) you can balance xfer to a 0% interest card like that ANZ card.

        Would save you heaps, but only for those who can take advantage of it. And you need to be very careful and not use the new card for anything.

        • Turd on 02/07/2014 - 13:40

          Also highly dependent on the credit limit the ANZ card gives you.

          I think generally they give you only $6k. Not a huge amount.

        • ryang on 02/07/2014 - 13:41
          +1

          So this is more in reference to reducing debts, not making money on interest.

          eg. Instead of using this loan to pay off a credit card, transfer all the credit to 0% interest and pay it off there.

        • ChickenTalon on 02/07/2014 - 13:46

          that is what I would do if I had any credit card debt

        • ChickenTalon on 02/07/2014 - 13:48
          +1

          i got $15k limit approved yesterday on the 50,000 points deal. I think 15k is the minimum they will approve on that type of card.

          I believe the ANZ Platnium card has a min around 6k, but I believe they will give you much much more

        • nadan on 02/07/2014 - 14:43

          Agreed with Chicken Talon, For me the balance transfer of 18K compared to 40K loan is almost $150 in favor of balance transfer, so don't get too excited by the big loan amount if you have credit card debt.

    • kingofamazon on 02/07/2014 - 15:06

      If you park the 48000 in the PPR account consider an extra 2061/months repayments towards the citi loan for two years since the repayments are P+I. For 60000 its over 2500/month.

    • Boshait on 04/07/2014 - 02:32

      If the loan is for a money making purpose then the interest would be tax deductible.

  • ryang on 02/07/2014 - 13:24
    +1

    Rough calculations show a profit of around $2k, but then you'd have to pay tax on top of the entire interest amount, so it'd dip down a bit..

    Edit: Much better response above! :)

    • [Deactivated] on 02/07/2014 - 13:31
      +1

      You pay tax on the difference as the interest charged is tax deductable as you are borrowing money to make money…Someone who is an accountant, please correct me if I am wrong.

      • ChickenTalon on 02/07/2014 - 14:20

        Really not sure there. Maybe if you were running a business you could claim it?

        I'm not a tax account either, but i don't think individuals can claim loans as tax deductions, unless they are for property or shares. I think it would have to be related to your work to claim the interest as a tax deduction (on the money borrowed from citi)

        This page talks about it
        https://www.ato.gov.au/Individuals/Income-and-deductions/Ded…
        but it's still not fully clear

        • lousy on 03/07/2014 - 00:31

          To be deductible you just need to prove that you took out the loan for the purpose of investment, so as long as you don't use the loan for personal expenses it will be deductible

          Ie you took out this loan for the purpose of dumping it into a higher interest paying account to make $

    • ChickenTalon on 02/07/2014 - 13:32

      not sure how you get the 2k. at best the ING welcome rate for 4 months at 4.35 will get you 870. but you've also gotta pay the est fee on this loan and 2.9%

      so very rough:

      $870 before tax interest earned - $580 interest paid to citi - $129 = 161
      but anyone with a job will have that $870 wiped out and you'd be behind

      • ryang on 02/07/2014 - 13:34
        +1

        Yeh, I went off 5% and was just working off the income from $48k, no other variables. Either way, seems like a Bad Idea(tm).

        • ChickenTalon on 02/07/2014 - 13:40

          agreed.

          You run the risk of stuffing this up far more than any potential profits taking out a loan to put in an ING account.

  • dbrent12 on 02/07/2014 - 13:31

    NVM

  • Turd on 02/07/2014 - 13:33

    Seems pretty good.

    Let's say 5% Mortage get this and you will be up 2.1% for 2 years.

    Let say max 60k you get. That's total $1740 a year. And $3000 for that you save on your interest, That means you gain $1260. Minus the $129 setup.

    Not too bad. Free money is free money!

    Total gain in 2 years is ~$2400 or so

    • ChickenTalon on 02/07/2014 - 13:43
      +2

      you need to halve all your calcs, this is not an "Interest Only" loan. you also need to pay back the principle monthly.

      say you parked the full $60k gain would be ~$1,131 (i just did calcs on 30k which would be your avg balance over 2yrs). Not something to be sneezed at if you can manage your money well.

      • Turd on 02/07/2014 - 13:46
        +1

        ahh right, so it's P*I repayment.

        Still it's pretty good isnt it?

        • ChickenTalon on 02/07/2014 - 13:51
          +1

          It's not bad. And I would probably do it myself, except my GF had a horrible experience with citi and her credit card. I wouldn't normally deal with them, but I might to save a grand.

        • sagax on 02/07/2014 - 13:51
          +2

          also, although $60,000 is the maximum your limit can be, they only offer the 2.9% rate for 80% of your limit. Hence the 48,000 maximum on the website. Do you want to rerun the calcs on a $24k average.

        • Turd on 02/07/2014 - 13:54

          ah yeah so what is the rate for the remainder? 19%?

        • ChickenTalon on 02/07/2014 - 14:00

          great pickup Altonius

          comes out to be $879

        • Turd on 02/07/2014 - 14:05
          +1

          879 is still a lot of 30cent cones

        • noyesmaybeok on 02/07/2014 - 16:14
          +3

          That's a lot of diabetes.

    • BrianGriffin on 02/07/2014 - 14:23

      — deleted —

  • Naed on 02/07/2014 - 13:49

    Maximum amount you can apply the 2.9% rate to is 80% of the loan limit. So the 2.9% rate can only be applied to $48k if you get the $60k limit.

    • Turd on 02/07/2014 - 13:51

      Oh so then that means say 60k loan, you will be charged 2.9% on 48k and whatever expensive rate they hae on the 12k?

      That's bad then

      • Naed on 02/07/2014 - 13:56
        +2

        I don't think that's the case. You can borrow upto 48k at 2.9%. You could then chose to use the extra $12k at 19.49% but I'd advise not to do that :)

    • ChickenTalon on 02/07/2014 - 13:53

      I think you missread that. the 2.9% applies to the whole amount borrowed.

      there is smoething about only 80% of this loan available for "redraw" or to be used as a balance xfer. Don't fully understand it.

      • Turd on 02/07/2014 - 13:55

        that's what i thought too 2.9% on whole amount borrowed. So if you have your moneys right then if u get 60k limit you will only be charged 2.8% interest right?

        • ChickenTalon on 02/07/2014 - 13:57

          sorry, i was going to edit my comment. It's a bit confusing the way they've worded it.

          You need to apply for a loan of $60k if you want to use $48k Naed was correct.

          there are some nasty 19.49% stings for anyone who attempts to "redraw" on this loan

        • Turd on 02/07/2014 - 13:58

          yeah. so it's not THAT great coz of the stinged 19%

          I'm sure people who dont read t&c's or consult others will get stung

        • [Deactivated] on 02/07/2014 - 14:02

          Read my EDIT 2 on the original post. Just don't pull out more than 80% of the loan amount.

          Read the T and Cs.

        • Turd on 02/07/2014 - 14:05

          ah ok so it's like a line of credit at 2.9% up to 80% of the loan

      • Naed on 02/07/2014 - 14:01
        +1

        Sorry, used the wrong term. You can balance transfer upto 80% of the line of credit at 2.9%. Also, you may not be able to balance transfer beyond this amount, I'm not sure.

        Incidentally, I'm not certain that this would work but it did for a credit card balance transfer I did with citibank. I put a positive balance on the account (so paid extra cash onto the card) and when I completed the balance transfer I was able to use 100% of the card limit rather than the 90% limit suggested by the offer. No idea if that would work in this instance. I think it may have been an issue with their system more than anything, it wasn't able to calculate the correct credit limit because there was a positive balance on the account or something.

        • noyesmaybeok on 02/07/2014 - 16:15
          +1

          I spoke to them online. You can BORROW or BALANCE TRANSFER up to 80% at 2.9%.

          Has to be upfront - after 90 days you're in the danger zone :)

  • Cluster on 02/07/2014 - 14:09
    +1

    This looks like a good deal. Borrow up to $48k at 2.9% and put the money into your 5% mortgage. $73.25 saved per month after taking into account the set up fee. Lower per month after that as the loan is slowly repaid.

    Here is the catch: If you're getting a personal loan I'm sure you have to state the purpose of it. If it's "offset interest on my mortgage" how likely is it that Citibank will give you the loan? They know you'll only use the 2.9% component, and surely pay it off within the 2 year period.

    You could choose to lie to Citibank and say it's for a car or something, but then it's tricky if they ask for supporting documentation.

    • No on 02/07/2014 - 14:12

      They don't ask what the money is for.

      You get a cheque in the mail and you can do whatever you like with it.

      This offer has been around for a while, I think its more or less a permanent offer from citibank.

      • Cluster on 02/07/2014 - 14:20

        So, apply for a $60k loan, withdraw $48k from it by BPay or cheque, and use that $48k for my 5.13% mortgage? The only catch I can see (for me) is that Citibank will add up my mortgage and new Citibank loan debt and may reject the application for having too much debt to income, even though I'm going to use the loan to offset the mortgage.

        This offer looks mighty tempting.

    • Turd on 02/07/2014 - 14:13

      I dont think you have to state the purpose of the loan, citibank are not the ato.

  • Naed on 02/07/2014 - 14:16

    A warning as well that the calculator they have on the site is misleading. It allows for more than 48k to be BT'd at the 2.9% rate. I checked how much I could save on my $9,000,000,000,000 home loan at 4.99% and I'm saving $335 Billion. Now I just have to buy my dream home on Mars.

    • Turd on 02/07/2014 - 14:19
      +7

      Sydney house prices are more expensive than house prices on Mars.

      Just a FYI.

      • Naed on 02/07/2014 - 14:21
        +4

        Thanks mate. And the worst part about spending all that money on a house in Sydney is then you have to live in Sydney - lol. Shots fired!

      • young_dazza on 02/07/2014 - 14:22
        +2

        Thats very true. 1 acre on Mars goes for just GBP16.75
        http://www.moonestates.com/

  • young_dazza on 02/07/2014 - 14:24

    I assume that with a standard interest rate of 19% that this is an unsecured loan?

    To be granted a $60,000 unsecured loan I'd guess that you'd need to be earning well over $200k, or else put down some property as security.

    Has anyone got any experiences to share?

    • [Deactivated] on 02/07/2014 - 14:27

      Will let you know how I go, will most likely apply tonite. Maybe someone ask via their online chat?

    • DryScissors on 04/07/2014 - 18:22

      I earn 100k a year and was approved for the full amount. I also have 48k sitting in my redraw so that probably helped.

  • slickvic on 02/07/2014 - 14:32

    Looking at the terms….

    1. A credit line of between $5,000 and $60,000 will be assigned based on our credit criteria, your credit rating. Minimum income required is $35,000 a year.

    Minimum income hurdle of 35k is fairly workable. Loan of 2.9% of any size is pretty good.

    • Cluster on 02/07/2014 - 14:39
      +3

      I don't think Citibank would offer a $60k unsecured loan to someone earning under $100kpa. Let's say this person takes home $80k after tax, or $6666 per month. They have a mortgage that requires $1650pm to service. So $5000 left over, before all of the usual life expenses. Let's say $2000pm to live. ~$3000 left over to service the $2061 repayments required per month. A $950 buffer per month is awfully small. People earning under $100k should be squeezed out of the $60k loan option.

  • plobanov on 02/07/2014 - 14:37
    -1

    hazzah

  • Duram on 02/07/2014 - 14:48

    Where it gets even more interesting is if you go beyond the initial maths and add extra repayments into the equation.

    48K over 2 years would mean you are paying less interest per month towards the mortgage if you were to use this opportunity to hit the principal even more than usual you would end up way ahead over the 1K calculated.

    • ChickenTalon on 02/07/2014 - 15:06

      that makes no sense

      You're paying less interest on your mortgage, but you're also paying the interest on this loan.

      Compared to a mortgage at 5% the best you'll be a head is $879 after two years.

      Remember you can only borrow 48k at 2.9% (the deal is missleading regarding 60k, you can't get that at all at 2.9%) and you need to make monthly payments of the amount you borrowed. So your average loan with Citi will be ~$24k over the two years.

      • Duram on 02/07/2014 - 15:15

        How does it make no sense? If I'm currently playing a 250K loan at 5.05% the interest charged per month is $1,052 once I put the 48K in the bank account it is $850 that means already $200 saving per month and now any extra dollar above the minimum repayment hits the princial at $850 instead of $1050.

        The above figures of course diminish per month of repaying it to citi bank but $879 ahead is the MINIMUM not the MAXIMUM if you were to make extra repayments.

        Example this month I make an extra 1K in repayments with citibanks 48K I'll wipe of 1K from the principal therefore putting the calculations even further in front as next month I won't be paying interest on that extra K, without the 48K from citi bank you would wipe of only 850 as 200 is eaten by interest.

        • ChickenTalon on 02/07/2014 - 15:23

          dude, where are you getting the money for extra repayments from? If you've got spare cash, it should be sitting on your homeloan in offset/redraw.

          It still doesn't make any sense.

          All you are doing with the citi loan is changing the interest rate you are paying on money you don't have (your home loan). This is the only way to come out ahead.

        • Duram on 02/07/2014 - 15:28

          I'm not sure if were on the same page or not.

          But to sum up less interest charged per month = more of the principal.

          More of the principal each month = less interest which in turn = more off the principal, it's not that hard.

        • ChickenTalon on 02/07/2014 - 15:34
          +1

          So you're saying pay down the citi loan faster? Borrow the full 48k and pay it back quickly?!?!

          Or are you saying that the money saved by switching the interest rates will be used to pay back the principle on your original home loan?
          Yes, that will net you some benefit in the future as your HL amount owing has come down. But it wont be huge. Savings are still 879, however you want to use them

  • IMBI3 on 02/07/2014 - 14:50

    You are assuming everyone will be approved for $60k

    • ChickenTalon on 02/07/2014 - 15:14
      +1

      even if you got approved for $60k you'd be nuts to borrow that much for this deal. $12k of that will be at 19.49%pa interest

      • Cluster on 02/07/2014 - 15:17
        +3

        You need a $60k approval to withdraw $48k at 2.9%

        What Citibank is counting on is people borrowing more than 80% by mistake, or taking out money again from the loan or after 90 days. My reading of the sales pitch is that only your first withdrawal up to 80% is at 2.9%, the rest you get smacked with outrageous interest rates.

        For people who use this offer wisely it's a great deal. For those that don't strictly follow the rules it can be a huge debt trap.

        • ChickenTalon on 02/07/2014 - 15:24

          agreed!

          I wouldn't rush into this.

        • PlasmaCatcher on 02/07/2014 - 18:19

          typical bank terms and conditions to trip up the average person that:

          • borrows/uses more than $48,000
          • makes more than one withdrawal
          • misses a payment and is charged a fee
          • I cannot find all the terms and conditions in one place
          • etc
      • IMBI3 on 02/07/2014 - 15:46
        +3

        Or you could only be approved for $10k and this would be a meaningless exercise

  • bragains on 02/07/2014 - 14:57

    DENIED

    • Turd on 02/07/2014 - 15:05

      Instant?

      • bragains on 02/07/2014 - 16:27
        +2

        Yeap :( Might be because I've got a hit on my credit yesterday for ANZ's credit card..

      • bragains on 03/07/2014 - 15:40

        Called them up and they said it was verified by a human being and wasn't just automatically denied. Hard to believe as the response was immediate.

  • Dominic on 02/07/2014 - 15:23
    +2

    The standard application fee for a ready credit loan is $69 but to get the special rate it's $129? What gives? Sure you still save with the special interest rate but it may end up costing a similar amount if you pay a small loan off fast enough.

    Note: This is still a fantastic deal for the overwhelming majority of people; larger loans, longer terms, have offset accounts etc. Just a heads up for people wanting the minimum amount and want to pay it back fast.

  • ddxsamx on 02/07/2014 - 15:24

    I know Ozbargain isn't a financial advisor but just open to opinions.. I'm about to enter into a (2nd) Home loan.. If I apply for this, will it adversely affect my borrowing capacity?

    • ChickenTalon on 02/07/2014 - 15:29
      +2

      It is highly likely to. When looking at approving loan amounts a bank will consider all of your assets against liabilities (and potential liabilities in the case of credit cards, car loans and personal loans).

      It may reduce the amount you can borrow for your 2nd home loan.

    • Cluster on 02/07/2014 - 15:29
      +1

      Yes. All your loans count towards your total debt load the banks use to calculate your borrowing capacity. Your credit cards' maximum available credit is also used towards the calculations, as it's assumed you can run up full debt on each card without notice.

    • ddxsamx on 02/07/2014 - 15:31

      Yeah, that's what I thought.. damn, okay thanks guys! :)

    • UFO on 02/07/2014 - 15:32
      +3

      Depends.

      Will getting this loan improve your serviceability?
      IE Are you getting this loan facility to pay off more expensive debts, or getting it to get into more debt?

      How's your existing rating? The fact you are going for a "2nd" home loan tells you got one already right? So is the 2nd one for investment purposes? Because then there's income to factor in to serviceability as well (but banks will never factor in all the rental income- only like 70% or so).

      Which loan is more important to you?
      The more you want the most should be the one you apply for first.

      • ddxsamx on 02/07/2014 - 15:36
        +1

        Yeah, makes sense. Definitely the home loan is more important at this stage.
        I was just tempted to apply for this and park it in an offset.

    • James030609 on 02/07/2014 - 15:34
      +2

      A loan will definitely decrease your borrowing capacity.

      But this will help in acquiring that 20% deposit to get rid of LMI(Loan Mortgage Insurance)? Thoughts?

      • Cluster on 02/07/2014 - 15:39

        One loan (unsecured personal) to part finance another loan (home)? This is where expert advice is needed I think.

        • ChickenTalon on 02/07/2014 - 15:53

          wont work. Banks will want to see evidence of a deposit before they will lend you money.

          You can't borrow your deposit. nice try though :)

        • Maxdax on 03/07/2014 - 19:48

          This deal is for 2 years. Take the money, park it in your account. Most lenders need to verify 3-4 months of funds parked. Hopefully ithis adds upto 10% deposit for your property. The savings would be huge on LMI IMHO

  • noyesmaybeok on 02/07/2014 - 15:32

    Summary looks good, have to be careful of any hidden details that could bite…
    Anyone read all the T&C's?

  • vincent0923 on 02/07/2014 - 15:46

    Confusing terms. Wouldn't risk it without knowing exactly how that 19% interest rate will be applied.

  • carlJack on 02/07/2014 - 16:00

    How does this work out for small amounts? Say 10k for a new car?

    • noyesmaybeok on 02/07/2014 - 16:02
      +1

      Loan itself - any potential catches aside - looks very good being 2.9%

      It was more the whole "get it at 2.9%, put in a term deposit to profit" that was a bit mmm.

      • ChickenTalon on 02/07/2014 - 16:06

        Yes, I +ved the deal because it's actually pretty good if you're switching around money you owe already (like your home loan). Or you want to borrow for a specific purpose.

        But I wanted to Neg the deal for the suggestion of taking out this loan to put into a Savings Account / Term Deposit. Very bad advice, could cost you money.

        • noyesmaybeok on 02/07/2014 - 16:17

          Throw it in shares, would be unlucky to make less than 2.9% if you invest in a decent company given dividends + returns (though it could all tank tomorrow, that's the risk you take).

        • ChickenTalon on 02/07/2014 - 16:28

          Yep, that's the risk.

          While the rate is good, borrowing to invest in shares has a heap of risk.

          This loan is also pretty useless for that as you need to pay it back over the period, are you going to sell small parcels of shares each month to pay it back? I wouldn't like to have to sell a certain amount of my portfolio each month. Brokerage fees asside, you would want some control over when you sell.

        • noyesmaybeok on 02/07/2014 - 16:57

          Ah - no anything that requires you to sell an investment at a set time will no doubt be bad :)

          Get the loan out to get $50k on tap right now, and then pay it back each month with job income.

    • Cluster on 02/07/2014 - 16:03

      Get a loan for $12.5k, withdraw $10k to yourself within 90 days and pay 2.9%.

      Many people here are thinking of using the 2.9% loan to pay off higher interest debt and therefore save money on the interest payments. If you're thinking of getting a new loan this offer looks excellent. Many car yards are now offering 1% finance but often the price is inflated to take care of the lost interest.

  • sheepdog on 02/07/2014 - 16:06
    +4

    "A Citibank e-Chat officer will be with you shortly.Your estimated wait time is 77 minutes. "
    Looks like the chat line got ozbargained :)

    • noyesmaybeok on 02/07/2014 - 16:12

      I had 30 mins, they took about 5 mins. There was no sound for me so be careful, an absolute fluke I happened to alt+tab into that window and saw it was already waiting for a response.

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