The Pros And Cons Of Personal Loans

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Loans are one of the oldest financial instruments in human history. The practice of acquiring and granting loans took place in almost every civilisation and they have proven their worth as well in expansion of civilisations and empires. Loan contracts comes in all kind of forms with varied terms and conditions, ranging from simple promissory notes between friends, family and closed ones to more complex modern loans like mortgage loans, personal loans, home loans and various other types of debt. Almost every financial institution in the country today is offering a host of loan options to its customers, after checking the user’s requirement and eligibility criteria. Citibank offers a range of loans to its customers for their everyday banking…show more content…
As it is an unsecured loan, the borrower does not have to put anything such as gold, or property, as collateral with the bank to avail it. Therefore, in case of default, the bank cannot auction anything you own. However, unlike mortgage loan or home loan which is taken with sole purpose of investing in property, personal loans can be and are availed for any important reason. People may need it for covering expenditures related to a wedding or home renovation or they just want to go on a big vacation. Personal loans have the potential to immediately pull you out from financial troubles. It can be used for any kind of personal monetary needs and bank has no right to limit its end-use, except to prevent any speculation or investment in stocks. It can be utilised for multi-purpose from renovating the home to funding higher education or marriage-related expenses. Personal loans are also useful when it comes to investing in business, fixing your car, down payment of a new house, among others. Unique features of Citibank Personal…show more content…
As per the bank’s procedure, you would have to submit certain paperwork such as KYC (Know Your Customer) documents, recent salary slips, proof of employment or income statement, etc. After submitting all the required documents, a credit history check is performed to determine the credit history and CIBIL score of the applicant. To avail personal loan from Citibank, the applicant must have a regular income source, whether you are salaried individual, self- employed business person and professional. Any individual’s eligibility is also affected by the company he is employed with his/ her credit history. Although the bank does not laid very strict eligibility criteria, however, Citibank similar to other banks is highly concerned about the repayment capacity of the borrower. If the bank is satisfied with the credit history and financial capacity of the applicant then Citibank loan is approved. Maximum Citibank loan

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