As a consequence of the deteriorating individual and family income status of the population resulting from the financial-economic crisis commencing in the fall of 2007, the credit appetite of consumers in Hungary indicate a trend of constant decrease. Recent statistics of the Hungarian National Bank evidence this trend by showing a 30.3 percent drop in the total value of consumer loan contracts in the Hungarian market from a HUF 21.8 billion in December 2007 to a HUF 15.02 billion in December 2008, with a further 16.1 percent decline to a value of HUF 12.75 billion in March 2009. Citibank's professionals are looking at solutions that provide customers access to affordable and calculable loans that support them in achieving their financial goals. In response to customer needs, Citibank expanded the existing preferential offers related to the Salary Transfer Loan by waving the otherwise HUF 400 monthly fee of the Citibank Current Account in the CitiControl Bank Account Package for new Salary Transfer Loan applicants from beginning of May.
“Our 2008 sales statistics showed a declining consumer risk appetite and at the same time customers were continuously approaching our bankers asking for preferential personal loans. Since our liquidity position is very strong and we have stable funding resources we are constantly working on developing offers that provide our customers access to an affordable personal loan that is easy to fit in the family budget. This is how we introduced the preferential Citibank Salary Transfer Loan in February that has already appreciably boosted our sales, and now we are enhancing this offer with a current account related preferential product offering”, said Batara Sianturi, Citi Country Officer for Citibank Hungary.
Customers applying now to a Citibank Salary Transfer Loan will have their otherwise HUF 400 monthly current account fee waived in the CitiControl Bank Account Package should they transfer their salary to this account, and in addition initiate at least two direct debit transactions out of which one can be the direct debit of the monthly installment related to their outstanding personal loan.*
Customers can obtain a Citibank Salary Transfer Loan with a one percent interest rate discount should they transfer their salary on any Citibank current account during their Citibank personal loan tenor. In addition, the bank will charge a 0 percent upfront fee instead of the otherwise 3 or 5 percent in case if payment of the monthly installments of the Citibank Salary Transfer Loan is managed through direct debit from a Citibank current account.
The tenor of the Citibank Salary Transfer Loan is from 1 to 6 years, and the amount may vary from HUF 300 thousand and HUF 3 million depending on the income and requirements of customers. Annual interest rates including the above mentioned preferential offers range from 20.75% - 27.99%.**
More information about the new preferential product offering as well as other Citibank products and services are available at Citibank's website at www.citibank.hu.
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