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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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  • matt_will_fix_it on 02/07/2014 - 16:23
    +2

    For those that have applied I'd be interested to know what credit limits they are giving

    • ddxsamx on 02/07/2014 - 16:50

      me too :)

  • Dominic on 02/07/2014 - 17:08
    +9

    Call up to question the $129 fee! They made it the original $69 instead after I asked. Saved $60!

    • DryScissors on 03/07/2014 - 12:34

      They wouldn't do it for me!

      • zerk03 on 03/07/2014 - 20:54

        I asked too, they said can do $69, but interest rate would go from 2.9% to I think 5.4%?

  • Cjarma01 on 02/07/2014 - 17:28

    Hi,

    I'm really interested in this deal and understand the 80% thing but say if I borrow 60K - and than use 48K to park in my mortgage (80%).. Haven't I still borrowed 60K and therefore would need to pay interest on that full amount? So more like I borrow 60K and pay 2.9% on the full amount if I take 48K out…. If I do take more than 48K out than I pay 2.9% on the 48K and 19.etc % on the 12K.

    Sorry - might be a stupid question.. I just remember I got a personal loan some years ago for a car.. I didn't immediately use the loan to buy a car but still had to pay interest on the loan even thou I hadn't spent the money..

    • noyesmaybeok on 02/07/2014 - 17:29

      Approved up to. Like a credit card, only pay for what you use.

    • bryans on 02/07/2014 - 19:11

      When you got your personal loan, you probably had the funds (loan amt) transferred into your account, so racked up interest immediately.

      With this, bank will set up a limit on your account (balance initially 0). Only when u actually debit the funds from the account does interest begin to incur.

  • bryans on 02/07/2014 - 19:14

    In terms of using it to invest in a high interest bearing account, just invest under a family member who pays no/little tax.

  • Rakddon on 02/07/2014 - 19:31

    on the site it says:

    Borrow funds or complete a balance transfer to access up to 80% of your credit limit at the 2.9% rate

    does this mean if i want to borrow $23,000 at 2.9% I need to borrow $27,600?

    • noyesmaybeok on 02/07/2014 - 19:56

      Be approved for up to $27,600 yes

  • Tomika on 02/07/2014 - 19:39

    When Lake Tahoe gets white, folks at California know it's time to hunt in Nevada.

    • Dr Techno on 03/07/2014 - 09:58

      Only if Bigfoot don't catch ya..

  • No on 02/07/2014 - 20:30
    +1

    If you got the other citi credit card offer you might be declined for this.

    I signed up for this 6 - 7 months ago. Then when I applied for the recent citi credit card offer I was rejected… I called up and they said it was because they don't give new lending products to new customers in the first 9 months.

    Strange policy especially since they gave me a crazy high credit limit straight off the bat on the 2.9% offer, usually banks give something modest for new customers then slowly offer more and more.

  • HKB on 02/07/2014 - 21:16

    I wouldn't bother. I applied for this a couple months ago when the interest rate was 1.9% with no setup fee. I earn well over 100K and only got approved for $30K. Now with a setup fee, any gains will be marginal.

    • abc on 02/07/2014 - 21:42
      +2

      And why did you not post that deal on Ozbargain???

      • pmupsinep on 02/07/2014 - 22:39

        Because he only signed up today?

        And did you read the part of his comment saying not to bother?

  • Associated[Deactivated] @ Citibank Australia on 02/07/2014 - 21:55
    +3

    Hi, there is 1.9% p.a for 15 months without any application fee, annual fee, penalty fee whatsoever. You can take up to 80% of the credit limit approved. Maximum credit limit $30K. Maybe suitable for you who would like to borrow smaller portion of funds without any fees involved.

    • senzuri on 03/07/2014 - 02:03
      +2

      Could thisbe it?

      • Associated[Deactivated] @ Citibank Australia on 07/07/2014 - 23:16

        not sure about online because it was ended 2013. you can call 82253717

    • nzthunderboy on 03/07/2014 - 21:29

      where can i find the link for this deal ? thanks

  • Torell on 02/07/2014 - 21:56

    Guys, i read most of the comments and am surprised no one seem to use the words compund interest.

    Saving about $800, compound that over say 15 years at 5% (likely to be higher later on), and u end up saving $1663 if its interest paid annually,

    If its average 10% imterest over those 15 years, that $3341.

    Use that to buy myer gift cards at 10%, then price match a $5k TV n claim ur 2% cash back u get a new series tv and 6months of popcorn to boot

    • WT on 02/07/2014 - 22:36
      +2

      All that for a tv which will be worth maybe 500 in 2 years?

      :(

      • HKB on 03/07/2014 - 08:50

        But you have to wait 15years before you buy the tv!

  • schuzants on 02/07/2014 - 22:54
    -3

    Is 2.9% fixed or variable? OP's title says fixed but I can't find it stated anywhere in citibank page

  • [Deactivated] on 03/07/2014 - 10:47

    Victim of my own doing…applying at the moment and the process stalls once you enter the details and click "continue"…I have opened up live chat and wait time is 82 mins…ai…

    • DryScissors on 03/07/2014 - 12:35

      I called and got straight through. I would prefer online though to be honest- the language barrier is frustrating!

  • jontymate on 03/07/2014 - 11:42

    And how about once you get say 30k from this deal then apply for other 0% balance transfer Credit Cards and transfer money from 2.9% to 0%.

    • WT on 03/07/2014 - 12:44

      On the right track, you increase your current CC to the max. You then draw the entire amount and put it on a home loan (high interest as its cast), immediately balance transfer to a 0% card, when that is up you switch to another, and another etc. Once you run out of card providers, you redraw on your loan and pay it off.

      People have continued to do this for years saving thousands on interest paid on their home loan.

      Word of warning though, it will trash your credit records since you have had so many cards so the partner with lower credit should do it. Don't do this on a 900K property if you can only afford $400k. You cant save 500K worth of interest in the 3years or so you can do this for.

      .
      ,
      ,
      ,
      ,
      I read (on WP I think) of an accountant and his clients, both of them did it, completely maxed their credit so they could afford an expensive house which they couldn't normally afford. Well they ran out of lenders after a few years and the card reverted to high interest which on top of their loan they couldn't pay. He was left to find a solution since they couldn't knock the loan interest down to what they could afford. I.e they would have to sell.

  • smart78 on 03/07/2014 - 13:57
    +1

    Guys… why not instead use the below of Citibank .. $89 annual fee, same condition 80% balance transfer to any loan, 16 months interest free .. see that INTEREST FREE.. no 2.9%

    http://www.citibank.com.au/CardsOnline/Classic.htm?cid=AF-Hi…

  • Slippy on 03/07/2014 - 15:30

    cheers, got one for 19k.

  • Ian8421 on 03/07/2014 - 15:54
    +2

    Guys,Just did a P+I repayment calculation with 5% interest rate home loan. over 2 years you can only save $AUD921 on the 48k loan after the $AUD129 setup fee.

    Given 5% home loan not change during 2 years term, following is the interest you can save each month in two years:

    80.50
    77.00
    73.50
    70.00
    66.50
    63.00
    59.50
    56.00
    52.50
    49.00
    45.50
    42.00
    38.50
    35.00
    31.50
    28.00
    24.50
    21.00
    17.50
    14.00
    10.50
    7.000
    3.500

  • zerk03 on 03/07/2014 - 21:01
    +1

    Applied today, I believe the 80% rule only applies to Balance Transfer, however this 2.9% offer also apply to Ready Credit, which is not limited by the 80% condition, therefore you can manually draw the 100% of your approved credit and deposit into your higher interest account yourself just dont get Citi doing the Balance Transfer.

    I think this works well for me, as currently I have a $20k personal loan on 13%, taking $20k out on 2.9% for 2 years will save me $4k.

  • chillwok on 04/07/2014 - 10:45
    -3

    i was really keen on getting this loan but after getting vague answers from citibank, i think not now.
    basically the last reply below sums it up for me.

    Chat started at 10:09 AM, 04 Jul 2014.
    Chill 10:09 AMabout your personal loan
    You are now chatting with Peter Chea

    Peter Chea 10:13 AM
    Hello, Chill. My name is Peter and I will be your Citibank e-Chat agent for this session.

    Peter Chea 10:13 AMThank you for your enquiry today, Chill. How can I be of assistance today?

    Chill 10:13 AMfirst question… am i talking to someone in india or australia?

    Peter Chea 10:15 AMSure, we are based in Sydney.

    Chill 10:15 AMok great.

    Chill 10:15 AMi'm enquiring about the citibank personal loan

    Chill 10:15 AMhttp://citibank.com.au/loansale.htm?Code=RAR4C2FA&cid=ATL-Readycredit-2.9_24_AA3-CL62014

    Chill 10:15 AMis this a credit card?

    Peter Chea 10:17 AMThank you for your interest, Chill. Citibank Ready Credit products are personal loans with the feature of a revolving credit, that means there is no set term.

    Chill 10:17 AMthat doesn't answer my question. do you get a credit card?

    Peter Chea 10:20 AMApologies, Chill. You mentioned if the following product is a "credit card". Citibank Ready

    Credit is a personal loan, in which you can access your funds via ATM/EFTPOS.

    Chill 10:21 AMso if i withdrawl from a ATM what are the fees?

    Chill 10:22 AMis there a link somewhere which outlines all the hidden fees with this loan
    Peter Chea 10:25 AM

    Visa Debit Card for ATM cash withdrawals with no cash advance fees. Currency conversion fee applies to transactions made in a foreign currency. Other service fees and charges including late payment fee and dishonour fee may apply.

    Peter Chea 10:25 AMFor more details in regards to the fees and charges please visit the following: http://www.citibank.com.au/global_docs/loans_compare.htm

    Chill 10:29 AMsay… i borrow $30000 but i take out 80% of that…. do i get charged interest on $30000 or $24000 ?

    Peter Chea 10:33 AMYou will pay interest from the time the funds leave your account. In this case, you will be charged interest on $24,000. The remaining funds will be charged the standard Annual Percentage Rate, currently 19.49% p.a. when used.

    • matt_will_fix_it on 04/07/2014 - 11:10
      +4

      Whats so vague? I think it may be more a lack of understanding of the product on your part. Its not a credit card, its a line of credit.

  • cocomelon on 04/07/2014 - 11:46

    i applied the 1.9% offer for 15 months ready credit. hopefully got approved on the max limit 30k, so i could withdraw 24k and put it to my 5% home loan

  • zerk03 on 04/07/2014 - 13:09
    +1

    Just got approved for $19k, asked for $25k.

  • Turd on 04/07/2014 - 13:12
    +1

    I have been been conditionally approved.

    No amount yet. I just need to send in the forms, though Im already a customer for a long time 10years. so :|

    I asked for 60k lol

  • Rakddon on 04/07/2014 - 17:11
    +1

    Rejected - Probably due to i recently got a Platinum CC with them

  • Aster Kittie on 04/07/2014 - 23:44

    Not such a great deal. I called them and asked about this. The monthly minimum interest repayment for a personal loan of $48,000 was just over $481 per month. I don't know how this is calculated as 2.9%PA of $48,000 is $1,392. divide this by 12 months and the monthly repayment should be $116, so was surprised when the person in the call centre told me the minimum repayment would be so high.

    If your loan has an interest rate of 6%PA, the monthly interest charge would be $240 per month for $48,000.

    When you do this, ask and confirm the minimum interest costs before you get bitten.

    • systmworks on 17/07/2014 - 22:11

      You are confusing the loan ANNUAL interest rate, with the minimum MONTHLY repayment amount - 2 totally different things!

      Regardless of what the annual interest rate on this loan is… 2.9% or 19% or whatever… you must repay a minimum of ONE PERCENT of the outstanding balance of the loan each month.

      1% of $48,000 = $480 paid off your loan
      However you will have $116 (2.9% of $48K / 12) of interested added that month

      So your $480 min monthly payment of $480 takes $364 off your loan principal, plus the $116 interest.

  • Ryan2008 on 06/07/2014 - 23:00

    T&C from city bank says:
    "The 2.9% p.a. interest rate applies to balances transferred with this offer at point of application and cheques-to-self with this offer within 90 days of account opening."

    Sounds like the 2.9% rate only apply for the first 90 days unless it is a balance transfer.

    • matt_will_fix_it on 07/07/2014 - 09:14

      I understand it a different way…

      You must issue the cheques to self within 90 days of account opening. The 2.9% rate then applies the same as a balance transfer option.

    • Associated[Deactivated] @ Citibank Australia on 07/07/2014 - 23:20

      2.9% p.a apply to 80% of credit limit approved. Once you get approved, ask for cheque payable to yourselves for 80% of the limit within 90 days. If you request the cheque after 90 days, offer will be void.

  • Lancerx on 07/07/2014 - 16:01

    hi guys, just confirming here. If I only tranfer 80% of my allocated credit limit, then I just pay the 2.9% p/a rate yes?

  • Peck on 08/07/2014 - 19:22

    I received the CitiBank Signature CC fee free for life credit card about 9 months ago. Under this 2.9% etc deal, I applied for $40,000 with an instant $30,000 'balance transfer'. They rang me today and said that it is their policy not to approve any credit within 12 months of having received credit with them! And so I could terminate my Signature CC ($15,000 limit) and they would guarantee approval of $15,000 Ready Credit - BUT NO MORE! (They added that I could apply for a credit increase in 6 months time). 'Balance Transfer' 'Ready Credit' bloody hell!! I think that even THEY are confused with the different terminology! I loved the security of my Signature CC but "a bird in the hand….etc"

  • DryScissors on 09/07/2014 - 19:38
    +1

    So here is my experience… I applied for 60k. I earn roughly 6 figures, have a mortgaged investment property and nearly own my PPOR. I also have a large amount sitting in redraw. After going through the application process & submitting required docs, I received an email and then a few days later, a credit card in the mail. I activated the online banking and found they had only approved me for $18,500…hardly worth it. I called this evening to cancel the deal. To be fair, they were pretty reasonable about it.

    I feel this promotion is pure click bait. Did anyone else have a similar experience?

    (also worth noting, they brought down the application fee to $69 without me even asking)

    • Peck on 09/07/2014 - 21:57
      +1

      "click bait"…umm..I think that you may be right. Maybe no intention of anyone ever getting any where near the max. $48K @ 2.9% !

  • Peck on 10/07/2014 - 15:01

    For information:
    I just went to my CitiBank dashboard, and it is now showing:-
    Account Name: ReadyCredit / Line of Credit xxxxxx9999
    Account Type: Loan
    Available Credit Amount: AUD 15,000.00
    Outstanding Balance: AUD 0.00
    When I go to another CitiBank account (transaction account) it shows that I can transfer $15,000 into it from ReadyCredit / Line of Credit.
    So it looks like I was approved for $15, 000 ($12,000 @ 2.9%) Whereas I had applied for $40,000 ( plus I had indicated that I wanted BT of $30,000 @ 2.9%)
    Oh well. Better than a poke in the eye with the blunt end of a sharp stick!

  • Martini on 10/07/2014 - 16:36

    Approved for $40k. Cheers OP.

    • Peck on 10/07/2014 - 16:58
      +1

      I'll have to give you a - unless you disclose your secret! hehe!

  • AncientWisdom on 11/07/2014 - 14:15

    Offer extended to 31st July, must have been working well for them.

    Also for the record they would not budge on the establishment fee, either in chat or on the phone :-(

    • DryScissors on 13/07/2014 - 08:49

      They don't budge during the application process, but once you're approved they tell you it's only $69.

      • AncientWisdom on 13/07/2014 - 10:20

        Do you mean for everyone?

      • Peck on 14/07/2014 - 15:12

        How did you find out the fee that u were being charged?. They sent me a book of conditions and an ATM CARD. But still no other correspondence and $15k has been sitting in the account and accessible for a week now!!

  • Sharp on 15/07/2014 - 15:40

    approved for $30,000. called today to bargain for the establishment fee. they said it's $68. I said T&C shows $129 she replied readycredit establishment fee is $68. soo we'll see.

    I requested cheque to self for $24k. I'll put it in my offset account @ 4.93%.

    Also monthly repayments are only 1% of your loan amount. so pay min payments for 23 months and pay it off the whole loan on the month 24 to maximise the return.

    • eleana on 23/07/2014 - 13:28

      Hi Sharp,
      Do you need to sign, accept or active the offer of $30K? Or the 30K just turn up in your account?
      How they charge the establishment fee?

      We applied for 60K, and they just called and said the credit limit will be between 5-30k.

      We are thinking if they offer less than 30K, we don't want to take the offer anymore.

      Not sure if there is way to confirm the loan after the approval and before the establishment fee being charged.

      • Sharp on 31/07/2014 - 10:41

        30k just popped up in my online account. but I still had to call them to activate it & request a cheque to myself. if you don't activate it I don't think you'll be charged the establishment fee.

  • All Blacks NZ on 29/07/2014 - 19:36

    I got approved only for $15,500 despite being on good income. The worst part was no one told me that limit will be so low despite 2 calls from their verification teams. I have asked to cancel the account and send me account closure statement. Will never do this again as I am buying another property and my credit history will look pretty shit. In the end, it was not worth it.

    • raging on 30/07/2014 - 11:41

      Went through the same thing and got approved for 19k, effectively 15.2k on 2.9%. Still worth it for me as I'm using it for a home deposit.

  • Peck on 31/07/2014 - 10:47

    It seems to be well noted through their correspondence too that when you call to activate the account you must tell them that you want to activate the 2.9% offer too. I would have thought that this would be automatic, but it seems not.

  • Elitebhy on 05/08/2014 - 18:43

    Applied for 60k approved for 30k and had to cancel the citibank credit card too, anyways got them to reduce the establishment fee by $50. So worth trying to haggle. They have a direct debit form here www.citibank.com.au/aus/lending/ex_pdf/easi_pay.pdf

  • Karate Kid on 07/08/2014 - 22:41

    Offer is extended again.. Now till 31st Aug

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