| Media release 27-05-2008 |
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| Newsroom |
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| PERSONAL LOANS A CHEAPER OPTION BUT AUSTRALIANS STILL CHOOSE CREDIT CARDS |
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| Sydney, 27 May 2008: One-third of Australians are still choosing to use their credit cards for large purchases, even though a staggering 55 per cent believe personal loans are a cheaper option, a Citibank survey* has found |
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| The national survey of 1000 people revealed that given the option to pay for large purchases of $3000 or over, 38 per cent of respondents chose personal savings, 33 per cent selected credit cards and just 10 per cent opted for a personal bank loan, despite lower interest rates. |
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| The research coincides with the launch of Citibank's new personal loan, which gives applicants a response within just one minute, the ability to form the loan contract online and if successful, receive their cash within 48 hours. |
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| Jacqueline Nissen, Head of Consumer Lending, Citibank said, "Our research highlighted the two most important factors when people are looking to take out credit are rate and the ease of the application process". |
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| "More and more customers are choosing to take out a personal loan because of the savings they can make but people still rely on their credit card because it's quick and convenient," Mrs Nissen said. |
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| Citibank is believed to be the first Australian bank to allow customers to enter into a loan contract online, both securely and easily, meaning customers will know within minutes, rather than days, if their loan application has been successful. |
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| "Citibank's one minute personal loan debunks the public's perception of lengthy application processes and excessive paper work and importantly, we haven't compromised on lending security," Mrs Nissen said. |
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| When asked the most important factors for taking out a personal loan; interest rates were number one, ease of application process second, followed by speed of decision and cash. Brand was ranked as the least important factor when selecting a personal loan. |
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| Other key findings from the research included: |
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- Preference to use credit cards to make a purchase over $3000 was highest in NSW 35%, VIC 34% and QLD 29%
- Preference to take out a personal loan was highest in TAS 25%, WA 14%, SA/NT 12% - QLD was the lowest 7%
- Preference to pay with personal savings was highest in WA 47% and lowest in NSW and VIC both 36%
- 20% of people think a credit card is cheaper than a personal loan when making a large purchase
- 96% of people stated speed of application process was important
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| "At Citibank we've tried to remove the barriers to personal loans thanks to a competitive rate, instant application and cash in your hand within 48 hours," Mrs Nissen said. |
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| Media enquiries: |
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| Kristen Kaus: T: (02) 8225 1631 M: 0421 380 773 kristen.kaus@citi.com |
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| Leila Dean: T: (02) 8225 1658 M: 0404 509 894 leila.dean@citi.com |
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| Cameron Donovan, Love Communications: M 0408 662 007 |
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| Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com. |
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| Important Note: |
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| Issuer: Citigroup Pty Limited ABN 88 004 325 080, AFSL 238098 ("Citibank"). Terms and conditions apply and are available upon request. Fees and charges apply. All loans subject to Citibank's credit criteria. |
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| *The Citibank Personal Loan survey was conducted by Taylor Nelson Sofres in April/May 2008. The national survey involved 1000 people. |
