Paying off the loan

Hello,
You will need to read the rules and regulations on which you have singed, particularly 'pre closure rules'. Getting in touch with the bank is the best way to get the correct information

T&R

You will have to negotiate with the bank and see what they say.  But as a general principle, you signed for the loan and interest so they don't have to waive off anything if they don't want to - no matter what has happened.

I think they are offering a settlement closure on the loan as a option now.

I have a loan with Citibank, and i opted for a deferral program when i was stuck back in India due to the flights ban. They got back to me with 2 options. One, to proceed with deferral. Two, to close the loan account with a settlement which includes waiving off the partial amount in the total outstanding balance.

Get in touch with the bank and talk to them about your settlement preference.

Note: Having a loan closed on settlement basis will have a remark in your credit report which may be a issue for you when you are applying for a new loan in the future.

Dear customer

Citibank has always endeavored to be supportive to their clients and be part of solutions to their needs. Particularly in the current COVID-19 situation - we have ensured we respond to need of the hour by assisting clients with financial difficulties enroll onto payment deferral programs. This has allowed our clients to defer their payment obligations for a brief period, giving them time to plan and prioritize their financial needs

From our records, your payment deferral is reaching the end of its tenure. We have been attempting to reach you however we have been unsuccessful.

The objective of trying to contact you, is really simple - to help, guide and partner with you on finding alternatives that can help sort your immediate financial liabilities. We would like to discuss several options, to name a few as listed below with you :

-          A settlement plan : Involves a partial waiver of the outstanding balance in the event of a full settlement of account, allowing for a markdown payment amount

-          A further extension of the existing payment deferral program


While these alternatives are of course subjected to meeting certain terms and conditions, we hope that it can help our clients continue to maintain their financial commitments.

An open and honest dialogue is the first step towards any solution - our Credit Advisors can advise you on how to tailor your repayment plans to improve your credit bureau score, incur lesser interest and fees, and guide you on how to use credit wisely.

Please do not hesitate to contact us at +973 16163485, Sundays to Thursdays from 9.30am to 4.30pm. Our credit advisors will strive their best to assist you. Alternatively, you may wish to provide your current contact details and a convenient time for us to call you to further discuss.


Best regards,

Usually foreign banks are more susceptible to these options as they face more stringent scrutiny from their multinational parents plus have stricter operating conditions on them from CBB side vs. their local counterparts.   

And yes, it will reflect on your credit report.