Citibank Individual Repayment Program

1
Citibank Individual Repayment Program

• Presentation for the Press
• May 14, 2004

2
Citibank Credit Card

• Credit card is a payment tool involving the
  option of a revolving loan with manifold usage.
  
• Citibank credit offers
• Flexibility
• money for free for up to 51 days
• access to immediate credit line should the need
  be
  
• worldwide acceptance within MasterCard
• access to card-related info via Internet banking
  and phone banking for 24 hours a day
  
• up to 3 supplementary cards
• Security
• holders photo and signature borne on the cards
  front side
  
• fee-free blockage
• Bank warrants liability from the moment when a
  theft report is file
  
• fee-free issued of new card
• optional life and travel insurance policy
• As well as .
• Minimum installment at only 5 of the used up
  amount
  

3
Costs under control

• The fact that the amount of repayment is
  variable is unsatisfactory for some clients as
  they may lose track of exact future costs
  
• Lets give a hypothetical example...
• Credit limit Kc 100, 000
• A 5 minimum repayment amount upon the full
  usage of the limit is Kc 5,000
  
• Nevertheless I want to pay each time approx. Kc
  10,000 so that I can plan my outlays responsibly
  
  
• What is my solution?
• Loan with a fixed repayment schedule

4
Citibank individual repayment plan

• A loan under the credit card
• Client will purchase the goods using his credit
  card and, either in advance he already knows that
  he will be unable to repay the amount during the
  interest-free period or, he will learn so when he
  receives the card account statement
• A single call to CitiPhone can fix it. Given
  transaction is is overturned to Citibank
  Individual Repayment Plan with due dates 3, 6, 9
  or 12 months
• Attractive interest rate at 18 (APRE is also
  18 )
  
• Client has the option to plan single repayments
  as in case of a usual loan and, at the same time,
  hes offered the flexibility of a credit card

5
Example

• Purchase of sofa with a Kc20,000 price tag
• Term Monthly repayment amount
• 3 months Kc6868
• 6 months Kc3510
• 9 months Kc2392
• 12 months Kc1834

6
Card account statement displays it all

• Citibank Individual Repayment Plan
• initial amount
• outstanding principle
• No. of remaining repayments
• amount of monthly repayment

7
Recapitulation

• Benefits
• more beneficial interest rates
• the option to plan the repayments
• the option to choose the term from 3, 6, 9 or
  12 months
  
• its possible to have in place several
  concurrent individual repayment plans
  
• a single phone call can arrange for the
  application, no documentation is
  
• no guarantor required
• Fees and interest rates
• no introductory or monthly fees are charged
• interest rate at 18 p. a., APRE 18 p.a.
• Conditions
• purchases to be made over Kc10,000
• Non-applicable to cash withdrawals
• transactions may not be added up in order to
  achieve the minimum level

8
How Do We Stand...

• Interest rate Monthly costs
• Citibank
• Individual repayment plan 18 0,-
• Most frequent credit cards 18,96 - 26,64
  NA
  
• Usual loans 7,90 - 17,30 42 - 135 Kc
• out of which unsecured
  12,40 - 17,30 42 - 135 Kc

Combined with our current campaign promoting
Citibank Credit Card to be had fee-free for the
first year of use, this one may well be the most
impressive offering available on the market!
9

• Contacts
• Markéta Dvorácková
• Public Affairs Officer
• Phone [phone]
• marketa.dvorackova_at_citigroup.com
• Vít Ruicka
• Credit Card Product Manager
• telefon [phone]
• vit.ruzicka_at_citigroup.com