Looking for a loan to finance a new car, a dream holiday or a new business venture? Citibank International Personal Bank offers a ready line of credit in the form of overdraft facilities at attractive interest rates. Take advantage of Citibank's Overdraft Facilities for your immediate personal or business needs.
A Citibank Overdraft is a line of credit that can help you get what you want with
- Your choice of having the overdraft facility in USD or SGD
- Quantum of financing up to 100% of your collateral
- Interest charged only on amount used
- Disbursement of overdraft funds through a USD or SGD Interest Checking Account
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What you will need
- A USD or SGD Interest Checking Account
- Collateral in the form of a time deposit, selected Investment Funds or Singapore residential property.
Margin Call and Force Sell Calculation Methodology
- The Margin Call level is set at 25% Margin Erosion of Required Margin. If a Margin Call is triggered, you are required to top up to bring the position back to the approved quantum of finance immediately.
- The Force Sell level is set at 50% Margin Erosion of Required Margin. If a Force Sell is triggered, the bank reserves the right to close out all outstanding positions without notice.
Illustration of Margin Erosion Method for Margin Call and Force Sell Calculation
Client has a portfolio with Citibank Security Value of US$100,000, with an approved Quantum of Finance of 70%. This means that the client can have a maximum Outstanding Loan Amount of US$70,000 and the Required Margin is US$30,000.
Assuming he draws down the maximum Outstanding Loan Amount of US$70,000:
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- Citibank Security Value is at $100,000. Max Loan Limit possible would be $70,000, which is equal to Outstanding Loan Amount. There is no Margin Erosion and the account is within quantum.
- Citibank Security Value drops to $92,500. Current Margin would drop from $30,000 to $22,500 i.e. by 25% of the Required Margin. There is a 25% Margin Erosion and the account is in Margin Call.
- Citibank Security Value drops to $85,000. Current Margin would drop from $30,000 to S$15,000 i.e. by 50% of the Required Margin. There is a 50% Margin Erosion and the account is in Force Sell.
|Margin Erosion Illustration and Top-Up Requirement|
|Scenario||Margin Account Status||
Citibank Security Value
Quantum of Finance %
|Outstanding Loan Amount||Current Loan Limit||Required Margin||Current Margin||Margin Erosion %||Top Up Requirement|
|A x B||(C/B) - C||A - C||(E - F) / E||C - D|
Some important terms used in the Illustration are defined below:
Citibank Security Value (CSV) at any particular time refers to the aggregate marked-to-market value of all deposits, securities and any other assets in your portfolio that is accepted by the Bank as collateral for your Time Loan Facility.
Quantum of Finance % (QOF %) is the marginable value represented as a percentage prescribed by the Bank to the collateral forming your margin.
Outstanding Loan Amount is the current amount of loan borrowed.
Current Loan Limit is the maximum loan allowed based on the current CSV and the corresponding QOF
(i.e. CSV x QOF % )
Required Margin is minimum amount of Margin required to support the outstanding loan amount. Required Margin is derived from dividing the outstanding loan amount with the QOF% less the outstanding loan amount. This amount is $30,000 in each scenario as Outstanding Loan Amount and QOF% are constant.
(i.e. (Outstanding Loan Amount / QOF %) - Outstanding Loan Amount)
Current Margin is the difference between the current CSV and Outstanding Loan Amount
(i.e. CSV - Outstanding Loan Amount)
Margin Erosion is the scenario when Current Margin is less than Required Margin. Margin Erosion % is calculated by expressing the Margin Erosion as percentage of the Required Margin.
(i.e. (Required Margin - Current Margin)/ Required Margin)
Top-Up Requirement is the amount of cash top-up required in the event of a Margin Call or Force Sell. The amount is derived from comparing the Outstanding Loan Amount versus the Current Loan Limit.
(i.e. Outstanding Loan Amount - Current Loan Limit)
This proposal is not an offer to sell nor a solicitation of an offer to enter into a transaction. The terms set forth herein are intended for discussion purposes only and are subject to the final expression of the terms of the transaction in the applicable agreements and/or confirmation. Further, while some of the information provided may have been obtained from various published and unpublished sources considered to be reliable, neither Citibank Singapore Limited, Citibank N.A., Citigroup Inc. nor any of their affiliates guarantees its accuracy or completeness or accepts liability for any direct, indirect or consequential losses arising from its use.
The risk of loss in leveraged trading may be substantial. You may sustain loss in excess of your initial margin funds. Placing contingent orders, such as "stop loss" or "stop limit" orders will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders and you may be called upon at short notice to deposit additional funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You shall remain liable for any resulting deficit in your account. While the bank may attempt to contact you in the event of a margin call, if the value of the collateral in your account drops below the Bank's force sell requirements the bank is not required to contact you and can liquidate your trading positions or other assets from your account without contacting you. Prior to entering into any proposed transaction, you should determine, without reliance upon Citibank Singapore Limited, Citibank, N.A. or its affiliates, the economic risks and merits, as well as the legal, tax and accounting characterizations and consequences, of the transaction and that you are able to assume these risks.
You should therefore carefully consider whether such trading is suitable in the light of your investment objectives, your financial means and your risk profile. Leveraged trading products are not insured by the Federal Deposit Insurance Corporation. Investment products including leveraged trading products are not available to U.S. persons and may not be available in all jurisdictions. This document and its contents are proprietary information and products of Citibank Singapore Limited and may not be reproduced or otherwise disseminated in whole or in part without Citibank's written consent.
Deposit Insurance Scheme - Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.
Citibank full disclaimers, terms and conditions apply to individual products and banking services.
In the event of any inconsistencies between the different languages of this document, the English language version shall prevail.