Australia: Citi launches innovative new personal loan product

Citi has recently launched a new product called the ‘Personal Loan Plus’ which offers borrowers a tailored interest rate based on their personal circumstances and financial history.

The Personal Loan Plus is unsecured, and customers can borrow up to $75,000, with a fixed term of 3, 4 or 5 years. The loan also has a reusable credit facility, so customers will be able to draw upon their existing balance without needing to reapply.

This product is one of the first personal loans offered by a major bank that has a tailored interest rate, and the product will compete with existing Peer-to-Peer (P2P) lending products currently on the market which offer risk-based pricing.

"According to RFi Group data, nearly two thirds (63%) of personal loan holders are comfortable borrowing from a bank, and less than one in five (17%) are comfortable borrowing from a P2P Lender, therefore Citi’s new lending product may see the high appeal."

According to RFi Group data, nearly two thirds (63%) of personal loan holders are comfortable borrowing from a bank, and less than one in five (17%) are comfortable borrowing from a P2P Lender, therefore Citi’s new lending product may see the high appeal.

Richard Wilde, Head of Cards from Citi Australia, says that the launch of the Personal Loan Plus will ‘dramatically enhance the experience’ for customers and that customers will be able to get a ‘real-time rate estimate without impacting their credit score, in under two minutes’.

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