Overdraft, shortly known as OD, is one of the financial services planned by the financial institutions/banks to their customers keeping in mind their comfort and ease. OD is a service provided to customers under which one can withdraw extra money, except their account balance, from their current account. Every bank or institution has set its own limit for overdraft.
An overdraft is issued generally for a short-term monetary need. Repayment is not as strict as that of regular loans and it has both the options, secured as well as unsecured ODs depending upon your choice and eligibility. One such bank that provides overdraft facility is ICICI bank. The Overdraft Facility in ICICI Bank is very simple and easy to understand. Overdraft can get sanctioned up to the maximum amount of Rs. 15 lakh.
Interest rate offered for Overdraft facility or Insta FlexiCash from ICICI bank is 12% onwards per annum
|ICICI Bank Overdraft – Interest Rate & Eligibility – 2021|
|Interest Rate||12%-14% per annum|
|Loan Tenure||12 months|
|Processing Fee||Starting at Rs. 1999 + applicable taxes|
|Overdraft Amount||Up to Rs. 12 lakh|
|Business Existence||Min 2 years|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned charges.
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Availing Overdraft facility from ICICI bank
When undergoing with some unexpected negative incidents or urgency of money, need money for a wedding or for any short-term requirement, the Overdraft offered by ICICI bank is one of the best options available. The overdraft offered by ICICI bank is named as InstaOD which can be availed online, as well. Unlike many other financial features where you have to run here and there so many times, OD of ICICI is available at your disposal. Through the official website, I Bizz app of ICICI or via internet banking, you can get an OD for your needs. In case you are not an ICICI customer, you can visit the branch for details and processing.
Also Know: How to get overdraft facility in HDFC bank
Process of availing OD facility of ICICI bank
ICICI OD facility is mainly aimed at by the entrepreneurs or for commercial purpose. ICICI has introduced MSME (Micro, Small, and Medium Enterprises). Within few minutes, you can create an OD for yourself, as with the access to hassle-free online mode, you can do it easily. The processes involved are-
- You need to login via I Bizz app or with Internet banking account
- Click on the offer banner for proceeding further
- You will be asked some basic details which are mandatory to fill
- With the completion of 2 steps, you will be finalized for the OD
- Lastly, confirm the process by sending the SMS on the specified number
- If you go for the website then go <business> <business loans> <InstaOD>
- You can also click here to fill the form – https://clos.icicibank.com/CAOOD/Apply.jsp
So, through these simple steps, you can fill and assure an OD for yourself.
Key features of InstaOD facility
There are few things regarding the OD facility of ICICI bank that you must know before applying, like:
- The tenure of the ICICI OD is of 12 months. You can renew a new one next year. You credit score and repayment score matters in this regard
- The maximum amount you can avail is up to Rs. 15 lakh
- You do not need any collateral, as ICICI OD is unsecured
- The processing fee is 2% of the OD principal amount exuding the applicable taxes. Also, it is non-refundable
- Those belonging to other institution than ICICI can avail the offer in their nearest branches
So, these are the few things you must go through and keep in your mind before going further with your thought of applying for an InstaOD.
Also Read: What is overdraft against salary?
Benefits of InstaOD
You can get some of the outstanding benefits of OD in ICICI bank as compared to many other banks.
- The application process is very simple and easy to understand
- You do not need to rush to the branch for getting an OD sanctioned
- The processing fee is 2% of OD amount which is less than many other banks
- Maximum amount of Rs. 15 lakh can be availed via OD
- There is no need for collateral concern and such issues as this is an unsecured OD
- You need almost no hectic documents for getting an OD in ICICI
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Documents required availing OD from ICICI bank
Apart from the process, you also must know what all are the documents you need while applying for an OD in the ICICI bank. Basically, there is no physic document that you need to submit for this completion of this process. You just need nominal documents that are concerned while the online method. And unlike other institution, you are not required to submit additional documents.
You just need to submit the online application form, debit mandate and schedule of charges. Do not forget to read and agree to the terms and conditions of the overdraft. It will save you from unnecessary problems arising in the future. And you must know every detail before making any monetary decision to avoid adversities.
What is Insta FlexiCash offered by ICICI bank?
ICICI Insta FlexiCash is a paperless credit facility that enables its account holders (salaried) to get instant approval on their Overdraft (OD )request. This credit facility can be accessed from anywhere via ICICI bank’s net banking platform.
Features of Insta FlexiCash:
- Interest is paid only on utilized amount and not on total sanctioned limit
- Credit limit offered is 3 times the Net Salary of their account holders
- Overdraft pre-approval within 48 hours
- Paperless credit facility that can be applied from home without visiting bank
- No documentation and can be applied via ICICI bank’s net banking platform
- Nil foreclosure charges
- Auto-renewal of OD limit after every 12 months
Q1. Can I foreclose or prepay my Insta FlexiCash?
Ans. Yes, you can foreclose or pre-pay your Insta FlexiCash anytime during the specified tenure at free of cost, as there are no foreclosure charges levied by ICICI bank on Insta FlexiCash.
Q2. What are the tenure options for Insta FlexiCash?
Ans. The Overdraft tenure options for Insta Flexicash depend on the sanctioned limit and shall not exceed beyond 12 months.
Q3. How do I repay the Insta FlexiCash?
Ans. You can either pay the lump sum money at once, generate EMIs to repay or can ask the ICICI bank to deduct at regular intervals from your bank account.