ICICI to provide overdraft facility to salary account holder

New Delhi: The salary accountholder in the ICICI bank can avail the overdraft facility of the bank. Under this facility, customers can take up to three times the amount of their salary. Its purpose is to protect ICICI bank salary account holders from EMI or cheque bounce. The bank is providing short-term instant credit. Customers can avail this facility by filing application online. What is overdraft facility and how to apply for it?

What is an overdraft facility?

Government and private banks offer overdraft facilities. Most banks offer this facility on current account, salary account and fixed deposit (FD). Some banks also offer overdrafts in lieu of assets such as shares, bonds and insurance policies. Under this facility, one can take the money one needs from the bank and later pay this money.

How to Apply?

1. Login to your Internet banking account.

2. Go to the ‘Offers’ section.

3. Check the pre-approved OD offer and then apply.

Other features

• Immediate approval of overdraft facility: Customers get instant approval of OD facility without any documents.
• Active Credit Limit of OD: Bank gives credit limit up to three times the salary.
• Interest on the money used: Interest is only charged on the money that is actually used.
• Fixed Rate Interest: In Flexicash, interest is calculated at a fixed rate.
• Flexibility in repair: Customers get the flexibility to clear the outstanding limit as per their convenience.
• No Foreclosure Charge: There is no foreclosure charge in repairing used OD amount.

Fees and charges

– Processing fees: Starting from Rs 1,999 + GST
– Renewal fees: Flat Rs 1,999 + GST
– ROI: Between 12-14% per annum