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Key Features of ICICI Bank Business Loan with Overdraft (OD) Facility

Types of Overdraft Facilities:
- InstaOD Plus: An unsecured overdraft facility available online without paperwork, ideal for day-to-day business needs and sudden emergencies.
  Loan Amount: Up to ₹50 lakh for existing ICICI Bank Current Account customers; up to ₹25 lakh for non-ICICI Bank Current Account customers.
- Insta-Secured Overdraft: A secured OD facility for working capital requirements, offering instant pre-qualified loans.
  Loan Amount: Minimum ₹15 lakh, maximum ₹3 crore for existing customers.
- Fixed Deposit Overdraft (FDOD): OD against fixed deposits (up to 7 FDs) for corporates, with no processing or foreclosure charges.
  Loan Amount: Up to 90% of FD value, maximum ₹10 crore.
- Merchant OD: Tailored unsecured OD for registered merchants, available online.
  Loan Amount: Up to ₹25 lakh for existing customers.
- GST Business Loan OD: OD based on GST returns, with no financial documents required.
  Loan Amount: Up to ₹2 crore against self-occupied properties.
- Rural and Inclusive Banking Group (RIBG) OD: For businesses in rural/semi-urban areas, with simplified documentation.
  Loan Amount: Up to ₹5 million for micro-enterprises, ₹20 million based on GST returns, or ₹50 million for MSMEs.

Collateral Options:
Unsecured Options: InstaOD Plus and Merchant OD require no collateral, making them accessible for businesses without assets.
Secured Options: Insta-Secured OD, GST Business Loan OD, and RIBG OD accept residential, commercial, industrial properties, or liquid securities (e.g., fixed deposits) as collateral.
Interest Rates: Interest is charged only on the utilized amount, calculated daily and typically charged monthly.
Rates vary based on the facility and borrower’s profile:
InstaOD: Approximately 16% p.a. fixed, or I-MCLR 6M + 2% (up to ₹40 lakh) / +1.75% (above ₹40 lakh).
Insta-Secured OD: 11% p.a. (up to ₹40 lakh), 10.75% p.a. (above ₹40 lakh).
Rates depend on credit profile, loan amount, and business financials.
Processing Fees and Charges:
Processing fee: Typically 2% of the OD amount (excluding taxes), non-refundable.
No prepayment or foreclosure charges for InstaOD Plus, Merchant OD, and FDOD.
Renewal fee: 2% of OD amount for annual renewal (where applicable).
Tenure and Renewal: OD tenure is generally 12 months, renewable based on satisfactory track record and bank discretion.
Flexible repayment: No fixed EMI structure; repay anytime within the approved limit.
Eligibility:
Entity Types: Sole proprietorships, partnership firms, private/public limited companies, LLPs, HUFs, and self-employed individuals.
Age: Minimum 21–28 years (varies by profession); maximum 65 years at loan maturity.
Business Vintage: Minimum 1–5 years, depending on the facility (e.g., 2 years for InstaOD, 3 years for RIBG OD).
Credit Score: Preferably 700+ (InstaOD requires 725+).
Turnover/Profit: Minimum turnover of ₹15–60 lakh and profit after tax of ₹1–2 lakh, depending on the facility and entity type.
Documentation:
Minimal Documentation: InstaOD Plus and Merchant OD require no financial documents for pre-approved customers; others may need bank statements or GST returns.
Secured OD: Additional documents like property papers, Memorandum of Association, or Board Resolution for partnerships/companies.
Non-ICICI Customers: Identity proof (PAN, Aadhaar), address proof, income proof, and business vintage proof may be required.
Application Process:
Online Application: Available via ICICI Bank’s website, InstaBIZ app, or Corporate Internet Banking for InstaOD, Merchant OD, and FDOD.
Instant Sanction/Disbursement: Paperless processing with Video KYC for current account opening and instant disbursement for eligible customers.
Branch Application: Non-ICICI customers or those ineligible for online InstaOD must visit a branch.
Flexibility and Accessibility: Withdraw funds as needed within the approved limit, reducing interest costs by depositing funds to lower the outstanding balance.
Accessible for SMEs, startups (under iStartup 2.0), women entrepreneurs, and MSMEs with tailored solutions.
Supports various purposes: working capital, export credit, bank guarantees, and non-fund-based facilities (e.g., letters of credit).
Additional Benefits: No commitment charges on unutilized limits for InstaOD. Fast processing through a network of over 3,000 branches and decentralized operations. Pre-approved offers for existing customers, reducing documentation and processing time. Integration with ICICI Bank’s digital platforms (e.g., InstaBIZ app) for seamless management.

Benefits of ICICI Bank Business Loan Overdraft

Flexible Fund Access: Withdraw funds as needed within the approved limit, ideal for managing cash flow fluctuations, working capital, or unexpected expenses. Repay anytime without prepayment penalties (e.g., InstaOD Plus, Merchant OD, FDOD), reducing interest costs.
Interest Efficiency: Interest is charged only on the utilized amount, calculated daily, minimizing costs compared to term loans. Depositing funds reduces the outstanding balance, lowering interest expenses.
Quick and Convenient Processing: Instant sanction and disbursement for pre-approved customers via online platforms (e.g., ICICI Bank website, InstaBIZ app). Paperless process with minimal documentation (e.g., InstaOD Plus, Merchant OD) and Video KYC for current account opening.

Tailored Solutions: Diverse OD options (InstaOD Plus, Insta-Secured OD, GST Business Loan OD, FDOD, Merchant OD, RIBG OD) cater to SMEs, startups, merchants, and rural businesses.
Collateral Flexibility: Unsecured options (InstaOD Plus, Merchant OD) require no collateral, ideal for businesses without assets. Secured options accept properties or fixed deposits, offering higher limits.
No Prepayment/Foreclosure Charges: Facilities like InstaOD Plus, Merchant OD, and FDOD allow early repayment without penalties, enhancing repayment flexibility.
Supports Diverse Business Needs: Funds can be used for working capital, export credit, bank guarantees, letters of credit, or emergency expenses. Specialized facilities like GST Business Loan OD address specific requirements.
Accessibility for Non-Customers: Non-ICICI Bank customers can apply by opening a current account with Video KYC, making OD facilities widely accessible.
Digital Management: Seamless monitoring and transactions via ICICI Bank’s InstaBIZ app or Corporate Internet Banking, enhancing operational efficiency.
Pre-Approved Offers: Existing ICICI Bank customers benefit from pre-approved OD offers, reducing documentation and approval time.
Cost-Effective for Unutilized Limits: No commitment charges on unutilized amounts for facilities like InstaOD, ensuring cost efficiency.
Renewable Facility: OD tenure (typically 12 months) is renewable based on satisfactory performance, providing ongoing financial support.

How to Apply for ICICI Bank Business Loan Overdraft

1. For Existing ICICI Bank Customers
- Online Application Process
  - Step 1: Visit the ICICI Bank Website or InstaBIZ App
    - Navigate to the Business Loans section or log in to the InstaBIZ app
  - Step 2: Check Pre-Approved Offers
    - View OD products like InstaOD Plus or Merchant OD based on your current account or transaction history
  - Step 3: Select OD Facility
    - Choose the appropriate OD product (e.g., InstaOD Plus, FDOD, Insta-Secured OD)
  - Step 4: Fill Application Form
    - Enter PAN, business details, and loan amount
    - Pre-approved customers don’t need to upload financials
  - Step 5: Complete Video KYC (if needed)
    - Complete the identity verification via Video KYC for faster approval
  - Step 6: Submit and Get Instant Sanction
    - Upon approval, funds are credited to your current account instantly or within hours
- Branch Application Process
  - Step 1: Visit ICICI Bank Branch
    - Find the nearest branch to apply in person
  - Step 2: Request the OD Facility
    - Ask for a specific OD product (e.g., GST Business Loan OD)
  - Step 3: Submit Documents
    - Provide KYC, business proof, financials, and property papers (for secured OD)
  - Step 4: Fill Application Form
    - Manually fill in your business and financial details
  - Step 5: Wait for Approval
    - Faster processing for existing ICICI Bank customers
2. For Non-ICICI Bank Customers
- Online Application Process
  - Step 1: Open a Current Account
    - Apply via the ICICI Bank Current Account page using Video KYC
    - Required: PAN, Aadhaar, business proof (e.g., GST, Udyam)
  - Step 2: Apply for OD
    - After account activation, log in and select an OD product (e.g., InstaOD Plus)
    - Submit business and financial documents as applicable
  - Step 3: Complete Video KYC and Await Sanction
    - Verification and approval time varies from hours to a few days
- Branch Application Process
  - Step 1: Visit ICICI Bank Branch
    - Open a current account if not already available
  - Step 2: Apply for OD
    - Submit required KYC, business proof, financials, and property docs (for secured OD)
    - Fill out the application and wait for processing
3. Required Documents
- Unsecured OD (e.g., InstaOD Plus)
  - PAN card, Aadhaar (for KYC)
  - Business proof: GST, Udyam certificate, shop license
  - No financials needed for pre-approved offers; others may need 6–12 months’ bank statements
- Secured OD (e.g., Insta-Secured OD, GST OD)
  - KYC: PAN, Aadhaar, passport
  - Business docs: GST, MOA/AOA, partnership deed, etc.
  - Financials: Bank statements, ITR, GST returns
  - Collateral: Property title deed, NOC, FD certificates (for FDOD)
4. Eligibility Criteria
- Business Vintage: 1–5 years
- Age: 21–28 years (min), 65 years (max at maturity)
- Credit Score: 700+ (725+ for InstaOD)
- Turnover: ₹15–60 lakh; Profit after tax: ₹1–2 lakh
- Entity Types: Proprietorships, partnerships, LLPs, Pvt. Ltd., HUFs
5. Processing Time
- Pre-Approved: Instant to a few hours
- Non-Pre-Approved: 1–7 working days
6. Tips for Smooth Application
- Maintain a high credit score (700+)

Eligibility Criteria for ICICI Bank Business Loan Overdraft

Eligible Entities: Sole Proprietorships, Partnership Firms, Private Limited Companies, Public Limited Companies, Limited Liability Partnerships (LLPs), Hindu Undivided Family (HUF), Self-Employed Professionals (e.g., doctors, chartered accountants), Trusts and Societies (for specific facilities, subject to bank approval).
Age of Applicant: Minimum 21–28 years (varies by profession and facility; e.g., 25 years for self-employed non-professionals, 28 years for professionals like doctors). Maximum age is up to 65 years at the time of loan maturity or OD renewal.
Business Vintage: 1–5 years of business operations depending on the OD facility:
- InstaOD Plus: At least 2 years
- Merchant OD: At least 2 years (for registered merchants)
- Insta-Secured OD and GST Business Loan OD: Minimum 3 years
- RIBG OD: 1–3 years (depending on business type)
- FDOD: No strict vintage if FD is with ICICI Bank
Proof of Vintage: GST registration, Udyam certificate, shop license, or incorporation documents.
Credit Score: Preferably 700+ (CIBIL or equivalent). For InstaOD Plus, a score of 725+ is required. Lower scores may be accepted for secured facilities like FDOD or Insta-Secured OD.
Business Turnover:
- InstaOD Plus: ₹15–40 lakh (based on entity type)
- Merchant OD: ₹40 lakh or based on merchant history
- Insta-Secured OD: ₹60 lakh or higher
- GST OD: Based on GST returns (typically ₹60 lakh+)
- RIBG OD: ₹15–60 lakh for MSMEs
- FDOD: Based on FD value; no turnover required
Profitability: Positive PAT for 1–2 years:
- InstaOD Plus: Minimum ₹1–2 lakh PAT
- Insta-Secured OD: Minimum ₹2 lakh PAT
- GST OD: Based on GST filings and financials
- FDOD: Profitability not required if backed by FD
Current Account Requirement: Existing ICICI Bank current account is preferred for faster approvals and pre-approved OD offers. Non-customers must open a current account via Video KYC or at a branch.
Collateral (for Secured OD):
- Insta-Secured OD, GST OD, RIBG OD: Self-occupied property with clear title
- FDOD: Fixed deposits (up to 7) held with ICICI Bank, allows OD up to 90% of value
- Unsecured OD like InstaOD Plus or Merchant OD require no collateral
GST Compliance: Valid GST registration and regular filings for the past 12–24 months. GST turnover should align with product (e.g., ₹60 lakh+ for GST OD).
Facility-Specific Criteria:
- Merchant OD: Registered merchants with POS or digital payment history
- RIBG OD: Rural/semi-urban MSMEs with simplified financial documentation
- iStartup 2.0 OD: Startups recognized by DPIIT or funded by VCs, with 1–2 years operations
- FDOD: Active fixed deposit with ICICI; no additional financials required
Operational Bank Statements: Applicants must submit bank statements for the past 6–12 months (required for non-pre-approved offers and secured OD).
Loan Repayment Track Record: A clean repayment history of existing loans improves the chances of approval and higher limits.
Business Location: The business must operate in locations approved by ICICI Bank (urban, semi-urban, and rural areas based on product).
Utility Bill/Office Rent Agreement: Some facilities may require office address proof (electricity bill, rent agreement, etc.).
Digital Payment Adoption: For Merchant OD, high digital collection volume through QR codes, POS, or payment links is favorable.
Active Tax Compliance: Regular ITR filing and GST compliance is crucial, especially for GST OD and Insta-Secured OD.
Business Type Acceptability: Certain sectors like real estate, speculative businesses, and arms manufacturing may be excluded or require special approval based on ICICI Bank's internal policies.
KYC & Documentation Compliance: All applicants must comply with KYC norms, including valid PAN, Aadhaar, and business registration certificates. Incomplete or outdated documentation can delay or reject the application.

Documents Required for Business Loan Overdraft (OD)

Application Form
- Duly filled and signed OD application form (available online or at the bank branch).
- For online applications (e.g., InstaBIZ app for ICICI), details are submitted digitally.
- Recent passport-size photographs of the applicant (proprietor, partners, or authorized signatory).
Identity Proof (Any One - Mandatory PAN Card)
- PAN Card (mandatory for all applicants).
- Aadhaar Card (preferred for Video KYC).
- Passport, Voter ID, or Driving License.
Address Proof (Any One)
- Aadhaar Card, Passport, Voter ID, Driving License.
- Utility bill (electricity, telephone) not older than 3 months.
- Registered rent agreement or property tax receipt.
Business-Specific Documents
- GST Registration Certificate.
- Udyam Registration Certificate (for MSMEs).
- Shop and Establishment License.
- Certificate of Incorporation (for companies).
- Partnership Deed (for partnership firms), LLP Agreement (for LLPs).
- Memorandum of Association (MOA) & Articles of Association (AOA).
- Board Resolution (for companies or LLPs applying for OD).
- HUF Declaration (for HUF entities).
Business Vintage Proof
- GST Registration or Udyam Certificate showing business start date.
- Shop License, Incorporation Certificate, or trade license.
- Bank statements reflecting business transactions over 1–3 years.
Financial Documents
- Bank Statements: Last 6–12 months of the primary business account (ICICI/HDFC or others). Not needed for pre-approved offers.
- Income Tax Returns (ITR): Last 1–3 years’ ITR with income computation (depending on product).
- Audited Financials: Profit & Loss statement and Balance Sheet (last 1–3 years) certified by a Chartered Accountant.
- GST Returns: Last 12–24 months’ filings (mandatory for GST OD products).
Collateral Documents (For Secured OD Products)
- Property-Based OD:
  - Title deed or registered sale agreement.
  - NOC from society/builder, Approved building plan or completion certificate.
  - Encumbrance certificate, Property tax receipts.
  - Chain of documents (last 13–30 years as per bank policy).
  - Valuation report (if requested by the bank).
- Fixed Deposit OD (FDOD):
  - FD receipt or certificate from the bank.
  - Lien marking request letter (to pledge the deposit).

Factors for Business Loan Overdraft (OD)

Credit Score and History: A credit score of 700+ is preferred; 725+ for unsecured OD like InstaOD Plus. A clean repayment track record with no defaults or high credit utilization improves approval chances.
Business Vintage: Minimum operational history of 1–5 years based on the product. InstaOD Plus and Merchant OD require 2+ years, while GST Business Loan OD and Insta-Secured OD require 3+ years. FDOD may not require vintage if backed by deposits.
Turnover and Financial Health: Annual turnover should range from ₹15 lakh (for Merchant OD) to ₹60 lakh+ (for GST OD). Consistent profitability and financial documentation like ITR, GST returns, and audited statements are important.
Cash Flow and Bank Transactions: Bank statements of the last 6–12 months should show regular transactions, high average balances, and low bounced cheques. For Merchant OD, POS/digital payment history is evaluated.
Collateral (for Secured OD): Collateral-based OD requires property with a clear title or fixed deposits with the bank. FDOD allows up to 90% of FD value as OD. InstaOD Plus and Merchant OD are unsecured and need stronger financials.
GST Compliance: Regular GST filings for the last 12–24 months are crucial for GST OD products. A valid GST registration and consistent tax filings support business credibility and eligibility.
Business Type and Entity: Accepted entities include proprietorships, partnerships, LLPs, Pvt Ltd/Public Ltd companies, HUFs, and professionals. Product eligibility varies by business sector (e.g., manufacturing, trading, services).
Applicant’s Profile: Age should be 21–65 years at loan maturity. Business owners, directors, and partners with relevant industry experience are eligible. Valid KYC documents like PAN, Aadhaar, and address proof are mandatory.
Banking Relationship: Existing customers with a current account (vintage 6–12 months) may qualify for pre-approved OD offers with faster processing. Consistent transactions and high turnover boost chances.
Debt-to-Income Ratio: Low existing debt with respect to income or turnover helps in higher OD approval. Multiple existing loans or poor servicing of debt may impact eligibility or reduce the sanctioned limit.
Loan Amount and Purpose: The OD limit should align with turnover and repayment capacity. A clear purpose (e.g., working capital, export finance, emergency funds) is essential. Specific products require aligned use cases and documentation.
Interest Rates and Fees: Rates typically range from 10.75% to 25% per annum based on credit risk and product. Processing fees can go up to 2% of the sanctioned limit + applicable GST.
Digital Footprint: For digitally savvy businesses, online payment records, website presence, and e-commerce transactions can positively influence assessment.
Seasonality of Business: Seasonal businesses must demonstrate cash flow management during off-seasons. OD limits may be structured accordingly.
Industry Risk Profile: Industries considered high-risk (e.g., hospitality, aviation) may face stricter eligibility or lower OD limits compared to stable sectors like FMCG or healthcare.
Regulatory Compliance: Timely tax payments, business registrations, and licenses contribute to better eligibility and faster loan processing.
Past Loan Performance: Previous loan repayment behavior (including EMIs, OD usage, and limits) impacts OD approval, especially with the same bank.

Frequently Asked Questions (FAQs)

What is a Business Loan Overdraft (OD) from ICICI Bank?

A Business Loan OD is a flexible credit facility allowing businesses to withdraw funds up to an approved limit to meet working capital, emergency, or other short-term financial needs. Interest is charged only on the utilized amount, and funds can be repaid anytime within the limit.

What types of OD facilities does ICICI Bank offer?

ICICI Bank offers:

InstaOD Plus: Unsecured OD, up to ₹50 lakh (existing customers), ₹25 lakh (non-customers).
Insta-Secured OD: Secured OD, ₹15 lakh–₹3 crore, against property.
Merchant OD: Unsecured OD for merchants, up to ₹25 lakh.
GST Business Loan OD: Secured OD, up to ₹2 crore, based on GST returns.
Fixed Deposit Overdraft (FDOD): OD against FDs, up to ₹10 crore.
RIBG OD: For rural/MSME businesses, up to ₹5–50 million.
iStartup 2.0 OD: For startups with DPIIT recognition or funding.

Who is eligible for ICICI Bank Business Loan OD?

Eligible Entities: Sole proprietorships, partnerships, LLPs, private/public limited companies, HUFs, self-employed professionals.
Age: 21–28 years (minimum, varies by profession); maximum 65 years at maturity.
Business Vintage: 1–5 years (e.g., 2 years for InstaOD Plus, 3 years for Insta-Secured OD).
Credit Score: Preferably 700+ (725+ for InstaOD Plus).
Turnover: ₹15–60 lakh (varies by facility).
Profitability: Positive PAT of ₹1–2 lakh for 1–2 years (not required for FDOD).
Note: Non-ICICI customers must open a current account to apply.

What documents are required to apply for Business Loan OD?

General Documents:

PAN, Aadhaar, or other ID/address proof.
Business proof (GST registration, Udyam certificate, incorporation certificate).
Recent photograph.

Financial Documents:

6–12 months’ bank statements.
Last 1–2 years’ ITR or audited financials (waived for pre-approved offers).
GST returns (mandatory for GST Business Loan OD).

Collateral Documents (for secured OD):

Property documents (title deed, NOC, encumbrance certificate) for Insta-Secured OD, GST Business Loan OD, RIBG OD.
Fixed deposit receipts for FDOD.

Note: Minimal documents for pre-approved offers (e.g., InstaOD Plus, Merchant OD).

How can I apply for ICICI Bank Business Loan OD?

Online (Existing Customers): Log in to the InstaBIZ app, Corporate Internet Banking, or ICICI Bank’s Business Loans page. Check pre-approved offers, select OD facility, fill details, complete Video KYC, and get instant sanction.
Online (Non-Customers): Open a current account via Video KYC, then apply through the website or app with required documents.
Branch: Visit an ICICI Bank branch, submit documents, and complete the application. Processing may take 1–7 days.

Pre-approved offers ensure faster processing.

What is the loan amount and tenure for Business Loan OD?

Loan Amount:

InstaOD Plus: Up to ₹50 lakh (existing customers), ₹25 lakh (non-customers).
Insta-Secured OD: ₹15 lakh–₹3 crore.
Merchant OD: Up to ₹25 lakh.
GST Business Loan OD: Up to ₹2 crore.
FDOD: Up to ₹10 crore (90% of FD value).
RIBG OD: ₹5–50 million.

Tenure: Typically 12 months, renewable based on satisfactory repayment and bank discretion.

What are the interest rates for Business Loan OD?

Interest is charged only on the utilized amount, calculated daily:

InstaOD Plus: ~16% p.a. (fixed) or I-MCLR 6M + 1.75%–2%.
Insta-Secured OD: 10.75%–11% p.a.

Rates vary based on credit score, loan amount, collateral, and facility type. Exact rates are confirmed at the time of sanction.

Are there any processing fees or other charges?

Processing Fee: Typically 2% of the OD amount (plus taxes), non-refundable.
Renewal Fee: 2% of OD amount for annual renewal (where applicable).
Prepayment/Foreclosure Charges: None for InstaOD Plus, Merchant OD, and FDOD.
No Commitment Charges: On unutilized limits for InstaOD.

Charges vary by facility; confirm details during application.

Is collateral required for Business Loan OD?

Unsecured OD: No collateral needed for InstaOD Plus and Merchant OD.
Secured OD: Collateral required for:
- Insta-Secured OD, GST Business Loan OD, RIBG OD: Self-occupied residential, commercial, or industrial property.
- FDOD: Fixed deposits with ICICI Bank.

Collateral quality (clear title, marketable value) impacts loan amount and approval.

Can non-ICICI Bank customers apply for Business Loan OD?

Yes, but they must open an ICICI Bank Current Account (via Video KYC or branch) before applying. Additional documents (e.g., 12 months’ bank statements, ITR) may be required, and processing may take longer compared to existing customers.

How long does it take to get the OD approved?

Pre-Approved Offers: Instant sanction and disbursement (within hours) for InstaOD Plus, Merchant OD, or FDOD.
Non-Pre-Approved:
- Unsecured OD: 1–3 working days.
- Secured OD (with property): 3–7 working days, depending on collateral evaluation.

Complete documentation and Video KYC expedite processing.

What can the OD funds be used for?

Funds can be used for:

Working capital requirements.
Emergency expenses or cash flow gaps.
Export credit, bank guarantees, or letters of credit.
Business expansion or inventory purchase.

Specific facilities (e.g., Merchant OD, GST Business Loan OD) may have tailored purposes based on transaction or GST data.

List of ICICI Bank Business Loan OD Facilities

ICICI Bank InstaOD Plus (Unsecured)
ICICI Bank Insta-Secured Overdraft (Secured)

ICICI Bank Merchant OD (Unsecured)
ICICI Bank GST Business Loan OD (Secured)

ICICI Bank Fixed Deposit Overdraft (FDOD) (Secured)

ICICI Bank Rural & Inclusive Banking Group (RIBG) OD
ICICI Bank iStartup 2.0 OD

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