In case you are in a hurry to meet any of your personal needs and if you are thinking about going for a personal loan, my suggestion is that you should be thinking twice before you go to Citibank for a personal loan.I would like to highlight that I have been a Citibank customer over the past 10 years and even today I’m a Citibank Suvidha(savings account) customer.
However, this relationship doesn’t mean anything to them. I’m not sure if other banks treat their customers in a similar manner, but I hope they don’t.My bad experience with Citibank started when I received an "offer" e-mail from Citibank, as a privileged customer, stating that I’m eligible for a personal loan at a special interest rate and with a minimal processing fee. The offer stated that the amount would be disbursed in 48 hours flat, if I furnish the required documents. I had an immediate personal need during that time and I thought of using this opportunity, since I was a privileged customer:-) My biggest mistake was in assuming that banks value the relationship. However, it was not the case.
After 4 days of collecting the required documents and verification, I received a call informing that the amount has been sanctioned. I gave them a benefit of doubt regarding more time taken for a response and was waiting for a disbursal of amount. I had to wait for 4 more days, making follow-up calls to the concerned people, but there was no proper response. After 8 days from the start of application process, I was told that the amount cannot be disbursed because one of the bank’s policies doesn’t allow them to disburse the loan amount to me.
All this to a customer who had spotless salary account with them for a period of 10 years, who had decent monthly take home, who had provided references of friends and colleagues and who provided all required documents. If they treat a customer, who has been with them for 10 years, in such a manner, I can’t imagine the plight of a new customer applying for a personal loan.
I’m not saying that a bank cannot decline a personal loan to a person, but what I’m saying is that - decline it on Day 1 or Day 2, NOT on Day 8.Hence, some of the lessons:
Go for a personal loan only if you do not have an immediate need and you can wait for a while
Try to avoid personal loans as much as you can, since the interest rate is generally on the higher side
If you avail a personal loan, opt for a shorter duration, since the amount you pay towards interest is relatively less