Citibank Ready Credit

[indy1811]

Was going through the Citibank website and came across this feature.

https://www.online.citibank.co.in/p...ampaignCode=&productCode=&eOfferCode=LFTNVSUV

Looks like it is an overdraft facility for up to 5 times your salary. The interest rate would be between 16-19% which is what you would normally pay for a personal loan. Anybody have any good or bad experience with it?

Please share your impressions here.

 

[onlyravi]

I guess you have a Suvidha account. Send them repeated mails and deactivate it.
The first time you use that amount they charge you 1 time charge of Rs750. Thereafter Rs500 /year for renewal. Not to mention the interest rate.
I had a Suvidha account few years back. I deactivated it the first thing.
A few friends had issue with it. A friend had a standing instruction for fund transfer every month but unfortunately one month the salary got delayed by a day and his fund transfer was executed by using the money from this ready credit account. If not for the Ready Credit his standing instruction would have only failed there would be no penalty or charge for it (since he was transferring some money every month to his own other backup account). But here he had to pay 750Rs plus interest for using that money only for a day.
So I stay away from such schemes. Be your own judge and have more control over your account.

 

[indy1811]

I guess you have a Suvidha account. Send them repeated mails and deactivate it.
The first time you use that amount they charge you 1 time charge of Rs750. Thereafter Rs500 /year for renewal. Not to mention the interest rate.
I had a Suvidha account few years back. I deactivated it the first thing.
A few friends had issue with it. A friend had a standing instruction for fund transfer every month but unfortunately one month the salary got delayed by a day and his fund transfer was executed by using the money from this ready credit account. If not for the Ready Credit his standing instruction would have only failed there would be no penalty or charge for it (since he was transferring some money every month to his own other backup account). But here he had to pay 750Rs plus interest for using that money only for a day.
So I stay away from such schemes. Be your own judge and have more control over your account.

Cool, thanks for the info.

But don't you think it is good to have this as a backup in case of emergencies?

Rs. 500/year renewal charge doesn't sound too bad. The interest rate is on par with what you would pay for a personal loan.

Coming to your point about the standing instructions, i usually keep those on the 3rd or 4th of every month to avoid such problems.