ICICI Bank launches ‘InstaOD’, India’s first online overdraft facility for MSMEs

ICICI Bank launches ‘InstaOD’, India’s first online overdraft facility for MSMEs

Riding on the digital wave, and in a bid to use it for MSME funding, ICICI Bank has announced the launch of its online and instant overdraft facility, InstaOD’, for Micro, Small and Medium Enterprises (MSME). MSME bank customers will now be able to avail an overdraft upto Rs 15 lakh in a completely paperless and digital manner. The service can further be availed through the corporate internet banking account, its iBizz mobile application and the banks’s website.

The InstaOD initiative will enable online loan processing, instant disbursement with no collateral requirement, prepayment or foreclosure charges. Further, it will require minimal documentation.

Using the new overdraft option

Users can login through their corporate internet banking (I-Bizz app), eligible users will have a pre-approved option displayed on the offers tab of the app. Clicking on the ‘Avail Now’ option will get it pre-approved. Users can also log in through the bank’s website, enter their credit/debit card details. After login they’ll be asked to fill an application form, confirm overdraft details like limit, rate of interest and processing fee and that’ll be it.

Further, people who are ineligible to use the InstaOD services can go for the unsecured current account overdraft. This has a fairly relaxed eligibility criteria. User needs to have Constitutions –Individual, Proprietorship Partnership, Limited Liability Partnership, Private Ltd. Co. or a Public Ltd. company with a business vintage of 2 years. The bank further requires KYC documents and the current account statement for last 12 months.

The bank recently came up with a SME toolkit in collaboration with IFC (International Finance Corporation). The toolkit was established to empower local SMEs and help them with information on a variety of topics like Business Planning, Accounting, Human Resources, International Business, Legal, Insurance, Taxation, Marketing, Operations, Technology and Tenders. It further has downloadable tools like Business plan maker, website builder, among others. It claims to have crossed the 7.5 lakh visitor mark and over 2 million page views till date.  

Source: Financial Express