Citibank launches new personal loan to rival Ready Credit
The Citi Personal Loan Plus lets borrowers apply for loans of up to $75,000.
Citi has extended its personal loan offerings with its new Citi Personal Loan Plus, available from today. The loan has similar features to its Ready Credit, including the $75,000 maximum borrowing amount, but is structured as more of a standard personal loan rather than a line of credit.
One benefit offered by Citi's original Ready Credit is its competitive interest rate, currently 5.9% p.a. for 3 years. The Personal Loan Plus also offers this benefit with a 11.99% p.a. rate. However, this rate is available for a longer term up to five years.
Another key difference between the two products is the way you can use it. The Ready Credit promotional rate (5.9% p.a.) can only be applied to balance transfers applied for at the time of application or a cheque-to-self requested within 90 days of your account opening. This rate would then expire after two years, with the remaining balance being charged at the standard variable rate of 19.99% p.a. .
The standard variable rate of 19.99% p.a. would also be applied to any purchases made using the Visa debit card.
With the Citi Personal Loan Plus, borrowers can use the funds however they choose and still enjoy the 8.99% p.a. rate. This is a huge win for customers not looking for a balance transfer or not wanting to request a cheque-to-self.
For an unsecured loan, the 11.99% p.a. rate, while not the best rate available, is relatively competitive. Unsecured loans tend to fall in the 10-13% p.a. rate range, but loans available on finder.com.au do fall on either side of that range.
Citi describes this loan as a "general purpose loan", so if you're looking for an unsecured loan with a competitive rate and high borrowing amount, make sure to add the Personal Loan Plus into your comparison.