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%.