|Mumbai: Micro, small and medium enterprises (MSMEs) that have current accounts with ICICI Bank can now avail of automated loans in the form of an instant overdraft facility of up to Rs 10 lakh each year. The ‘InstaOD’ will enable a few lakh pre-qualified customers, who have held a current account for at least a year, to instantly get the loan without visiting a branch or submitting physical documents.|
The overdraft will be available at any time, anywhere, using the bank’s internet and mobile banking app. ICICI Bank has said that it will soon offer a facility of instant online sanction of overdraft facility to MSME customers of other banks too. ICICI Bank’s MSME portfolio is currently 2.5-3% of its total portfolio, but is one of the fastest expanding segments with a growth rate of 17% .
“With the economy on the upswing, this convenient overdraft facility will enable MSME companies to expand their business with ease. We have seen encouraging response to the facility within just a few days of its launch. We plan to shortly introduce a facility of instant online sanction for an overdraft facility for MSME customers of other banks as well,” said ICICI Bank ED Anup Bagchi.
To apply, customers must log in through their corporate internet banking (CIB) account, or the iBizz mobile application for businesses, or directly from the bank’s website. They will get an option of availing an overdraft facility. They can select the limit required, confirm their details on a pre-populated personal information page and submit the application after accepting the details of the limit, rate of interest, processing fee and the current account which will be linked to this facility.
As an additional layer of security, the customer has to send an SMS with the text ‘INSTAOD YES’ from the registered mobile number to the bank to confirm acceptance, following which the amount would be disbursed to the customer’s account. The overdraft is renewable on an annual basis, depending on the repayment track records of the overdraft facility.