Loan on your Credit Card - Terms & Conditions

General Terms and Conditions

In these Terms and Conditions, the following terms shall have the following meanings

  1. "Credit Card" shall mean an unexpired credit card issued by Citibank India.
  2. "Cardmember" shall mean the holder of a Credit Card
  3. "Loan On Phone or LOP" shall mean a loan on the Credit Card that can be availed upto the cash line, credit line or over and above the credit line via phone or Citibank website.
  4. "Loan" shall mean the amount lent by the Bank to the Cardmember under the Loan On Phone products.
  5. "Top-Ups" shall mean new loans availed by closing the previous ones and with an incremental amount disbursed, over and above the previous outstanding.

The present Terms and Conditions are to be read in conjunction with, and not in derogation of, the Cardmember Terms and Conditions and nothing contained herein shall prejudice or affect the terms of the Cardmember Terms and Conditions.

Unless otherwise specified, the words and expressions used herein shall have the same meaning as in the Cardmember Terms and Conditions.

Fund Transfer facility and Disbursement (Applicable for Direct fund transfer mode only)

The Loan on Phone including Top-Ups, shall be deemed to be booked / availed of by the Cardmember once the Cardmember has provided the telephonic confirmation by validating the Telephonic Personal Identification number(TPIN) /One-Time Password(OTP) from the registered mobile number at the time of availing the Loan on Phone product.

For customers availing the product via Citibank website, by validating Internet Personal Identification number (IPIN) / One-Time password from the registered mobile number at the time of availing the product.

Cardmember shall not be entitled to cancel the Loan or refuse to accept disbursement of the Loan facility once availed. However, a Cardmember intending to preclose the Loan may call 24-Hour CitiPhone. The pre-closure of Loan shall be subject to prepayment process and related preclosure charges as defined in these terms and conditions.

Cardmember shall be liable to pay interest on the Loan on Phone at the rate as given in the Repayment Schedule. Loan on Phone shall be deemed to be booked on the date of confirmation provided by the Cardmember and Disbursements under the Loan on Phone product shall be deemed to be made on the date when the Loan amount is credited by Citibank to the Designated Account.

Cardmember hereby agrees that upon Citibank sanctioning the Loan on Phone based upon the information provided by the Cardmember at the time of availing the product and further confirming the terms in the Telephonic Confirmation / Citibank website,Citibank will not be responsible for any loss incurred by the Cardmember as a result of providing any wrong information by the Cardmember with respect to Direct Fund Transfer details, It shall be deemed as an absolute consent of/by the Cardmember to accept all the terms of the Loan on Phone including but not limited to acceptance of these Terms and Conditions and agrees to be bound by it at all times. The Cardmember hereby agrees that upon the amounts being credited to the Designated Account, he/she shall be required to repay the Loan on Phone as per the Repayment Schedule. For more clarity, please refer to the Billing and Repayment method section below.

In the event of any bounce / return of funds from Cardmember's bank, the Loan shall be preclosed and all charges levied towards this transaction shall be reversed. Such reversal shall be reflected in your Credit Card statement.

Encashment and Free look period (Applicable for Demand draft issued customers only)

The Loan shall be deemed to be availed of by the Cardmember only on the date of encashment of the Bank Demand Draft (DD).

The DD is valid for a period of 30 days from the date of issuance. The billing of Equated Monthly Installments (EMIs) shall commence only post encashment of the DD. In the event of nonencashment within the said 30 days, the DD shall be canceled and no charges shall be levied towards this transaction.

In the event, the DD is issued against another bank (hereinafter referred to as a "DAO"), the Loan shall be considered to be availed of, from the date of draft issuance.

The DAO is valid for a period of 90 days.

In the event the DAO is not encashed within the said 90 days, it shall be canceled and charges levied from the date of issuance till expiry of said 90 days shall be reversed upon customer requests. Such reversal shall be reflected in the Card Member's Credit Card statement.

Billing and repayment

For Loan On Phone, the first EMI shall be billed on the first billing date for the credit card that falls post the date of:

  • encashment of the DD (except for DAOs, as specified herein), in case of issuance of DD.
  • the date of Loan disbursement, in case of loans booked under direct fund transfer option.

For Loan On Phone TopUps shall be deemed to be availed from the date of issuance of the fresh DD and from the date of loan on phone Topup booking, for the loans booked under direct fund transfer option. The first EMI shall always be billed on the first billing date for the Credit Card, that falls after the date of issuance of the Bank Demand Draft and from the date of loan booking, for the loans booked under direct fund transfer option.

Interest rate as communicated at the time of availing of the Loan on Phone Topup shall be levied/applicable on the entire Loan Amount including the old loan principle outstanding resulting in the re-pricing of the old loan principle outstanding also at the new Interest rate of the Loan on Phone Topup but Transaction fee (as specified herein) shall be levied only on the incremental amount disbursed. The old loan will get preclosed and the new Loan on Phone Topup will be booked for the entire loan amount at the new interest rate for the new tenure. When the old loan is pre-closed, the interest for the actual number of days till closure i.e. from the last billing date till the date of closure shall be debited to the Credit Card. The decision of Citibank in this regard shall be final and binding on the Cardmember.

For DAO's, the first EMI shall be billed on the first billing date for the Credit Card, that falls after the date of issuance of the DD.

All billing of EMIs in the subsequent months shall be on the billing date of the Credit Card for that month.

The EMI amount shall be included as a part of the minimum amount due appearing in the Cardmember's monthly Credit Card Statement. If the minimum amount due is unpaid, Charges shall be levied on such outstandings (including but not limited to the EMI as above), as communicated in the Credit Card Most Important Terms & Conditions (MITC).

For Loan On Phones availed against the Credit Line, the Credit Limit on the Cardmember’s Credit Card shall be blocked to the extent of the Loan amount. The Credit Limit shall be released as and when the EMI is billed and paid for, in subsequent months. For Loans availed above the Credit Line, the EMI shall be treated as a normal purchase/spend on the Cardmember’s Credit Card and as per the terms specified in the detailed Citibank Cardmember Terms and Conditions.

Interest Calculation Methodology on Loan products

Interest rates as communicated at the time of availing of the Loan product(s) shall be levied/applicable. The applicable rates shall also be mentioned on the DD advice slip and in the repayment schedule.

For Top-ups, the old loan shall be closed and the new interest rate, as communicated at the time of availing the offer and as mentioned on the DD advice slip and in the repayment schedule, shall be applicable to the consolidated loan amount.

The interest component for the first installment shall be computed from the issuance/encashment / loan booking date to the first billing date for the Credit Card. For all subsequent installments, the interest shall be computed on monthly rests and the installment shall be debited to the Credit Card on the date of each monthly bill. The interest component of the Equated Monthly Installment (EMI) is calculated only on the unpaid balance of your loan as illustrated below:

Interest Calculation:

Outstanding Loan Principle x ROI% x (number of days applicable / 360 days),

Where 'number of days applicable' will be actual days from the loan booking / draft encashment date to the first billing date of the Credit Card for the first installment and for all subsequent installments, 'number of days applicable' will be kept constant at 30 days.

[ROI = Rate of Interest as communicated at the time of availing of the product]

As a result of the computation above, it is possible that the first EMI may be for an amount lesser than the standard EMI amount communicated to you, depending on the date of encashment / date of loan booking.

Citibank reserves the right to modify all interest from time to time, at its sole discretion with prior notice or in the event of any changes in the interest rate made by the Reserve Bank of India.

Other Charges

A one-time transaction fee as mentioned below shall be charged for sanction of every Loan. This amount shall be billed to the monthly card statement on the date when the loan is deemed to be availed as mentioned herein above and will be included as a part of the minimum amount due in the month of first EMI billing.

The transaction fee –shall be 2.5% of the loan amount or Rs 300/- (whichever is higher).

Service Charges on Card balances

If the amount paid towards dues on the Credit Card is less than the Total Amount Due, Service Charges shall be levied on such outstandings (including but not limited to the transaction fee and EMI as above), as per the interest rate applicable and communicated in the Credit Card Most Important Terms & Conditions (MITC). This rate is subject to change with prior notice. The applicable interest rate shall be mentioned on the monthly Statement.

Prepayment process and related charges

The Loan- product can be pre-closed by calling 24-Hour CitiPhone.

Any payment made into the Credit Card Account over and above the EMI shall not be deemed to be payment towards the amount availed under LOP and shall not be deemed as closure of the said facility.

Any preclosure of LOP shall attract Prepayment charges at the rate of 3% on the outstanding principal amount. Citibank reserves the right to revise the prepayment charges at its discretion, with prior notice via email/ letter and such revised charges shall be binding on the Cardmember.

Once the LOP is preclosed, for any reason, all outstandings including but not limited to the principal outstanding, preclosure charge and the interest for the actual number of days till closure i.e. from the last billing date till the date of closure shall be debited to the Credit Card. On preclosure of all loans including, loans issued over and above the credit line; the above referred outstanding amount shall block the Credit Limit on the credit card.

Preclosure due to non-payment

In the event of non-payment of the minimum amount due for three successive months, the LOP shall be pre-closed and the principal outstanding, the interest for the days till closure and the preclosure charges shall be debited to the Credit Card account and appear in the subsequent monthly statement. Preclosure of loans issued over and above the credit line may result in its unpaid principal being considered as Over the Credit Limit (OCL) amount and being included as a part of Minimum Due for immediate payment. For such loan customers, Citibank, at its sole discretion, may revise the Credit Card limit as deemed appropriate prior to non-payment related loan preclosure to avoid levy of Over the Credit Limit (OCL) charges. It may be noted that such revision in credit line would not be available for Cardmember use. Citibank shall be entitled to demand immediate repayment of such outstanding amounts. . Instances where card payment higher or equal to the Minimum Amount Due is received prior to the subsequent billing date (before completion of three successive months of non-payment), LOP shall not be pre-closed and the credit limit would reset to the original limit

Preclosure due to card closure

In the event the Credit Card is closed prior to all EMI(s) being charged, the principal outstanding, the interest for the days till closure and the preclosure charges shall be debited to the Credit Card account. Citibank shall be entitled to demand immediate repayment of such outstanding amounts. For the loans issued over and above the credit line, where the credit limit was revised to avoid levy of OCL charges and card along with LOP are closed on account of non-payment, such line revision would not be reset on account of card closure. Cardmember, if interested in Citibank credit card facility, would need to repay entire outstanding amount and apply for card afresh.

Other Terms and Conditions

Billed EMI will not earn any Reward Points.

Final approval for LOP shall be at the sole discretion of Citibank and is subject to the Cardmember's performance on the Credit Card.

Note that this loan issued on your Credit card cannot be used for Business purposes, and/or purchase of gold/gold bullions/ gold coins/gold jewelry/ gold exchange traded funds/ gold mutual funds and for speculative or trading purposes such as shares and short term investments like KVP, PPF,NSC, Mutual Funds, fixed deposits, RBI bond, ULIP and for subscription into Citi offered wealth management, Insurance products or similar products. Citi prohibits the usage of unsecured loans for investments into Citi wealth management and insurance products. In the event that the loan facility is utilized by you for the purposes other than what is confirmed by you and as prohibited above, Citi shall be entitled to initiate lawful action against you and do all other acts and things as Citi may deem necessary to comply with its policies, including but not limited to liquidating your holdings of Investments/Insurance at that time. You will be liable for all costs and expenses that Citi may incur as a result thereof.

Goods and Services Tax (GST) as notified by the Government of India, is applicable on the interest component of the EMI, all fees and other charges and is subject to change as per relevant regulations of the Government of India.

Nothing contained herein should be construed as an obligation on Citibank to offer the above mentioned products.

Citibank reserves the right at any time, with previous notice, to add, alter, modify, change or vary all or any of these terms and conditions or to replace wholly.


All Information in this communication is correct at the time of printing/publishing
(Version: GCG/Cards/LOP T&Cs/07-17)
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