BRIEF : CITI Financials charges flat rate but when you ask them they will miscommunicate that it is on reducing balance.
At one time, I had gone through CItifinancials to get my ACs financed. Even before these finished, I got offer for Personal Loan...
Well, this was the biggest mistake I made...
I asked about the interest rate and I was told 17 %.
I asked if on reducing balance, answer was affirmative...
I took the plunge , signed the cheques not getting into further details.
After a week or so, I just got down to number crunching, more for my skill testing rather than anything else, but to my amazement, I found the interest to be significantly higher than what they said... After I was assured that my calculations were right, I called them to confirm this... Firstly, I was told yes, it’s on reducing balance, but when I insisted on getting the calculations, I was led to another officer and then told it is on flat rate...
Knowing I have been taken for a ride, I demanded a copy of the agreement I had signed with them. Well, all this was 2 months back ( late Nov 2005 ). I am still to get the papers even after 10 odd calls to their office...
This is to help any one trapped or about to be trapped with Citi financials... Even if getting money from them is an absolute need, at least know that the actual interest rate with them works out to be at least 22 % on reducing balance...
This is too high an interest and must be avoided. Their payment plans are such that at any point, even if you decide to prepay, you still making up making huge losses.