Working Capital Loans FAQs

What is an overdraft facility?

A limit is extended in your current account allowing you to withdraw any amount up to the sanctioned limit. Interest is charged on the amount used on a daily outstanding basis.

Can the loan be used for any other purposes?

The overdraft facility can be used only for working capital requirements like payment to debtors or towards inventory or expense. It cannot be used for other purposes like long-term investment in assets, for which a term loan may be used.

Can I avail of the Internet Banking facility?

Yes. Please apply for it at the time of loan application or at a later date at an ICICI Bank branch.

How do I pay the processing fees?

By cheque, demand draft or auto-debit.

How long does it take for the loan to be sanctioned?

Loans are normally sanctioned within four business days on submission of all pre-sanction documents. After the submission of pre-disbursement documents, it takes a further four business days for the loan to be disbursed or the OD limit to be set up.

How do I repay my term loan?

In equated monthly installments (EMI).

How do I ensure repayment of my OD account?

To ensure repayment, you must ensure the following:

  • That service interest is debited to your account on a monthly basis.
  • Interest is levied only for the period for which the amount has been utilised.
  • That your limit never reflects overdrawn status.
  • That you maintain the requisite credit summation norms.

What are the credit summation norms for ACL?

ACL's credit summation norms indicate that you must credit your account with a minimum of 15% of the amount utilised on a quarterly basis, and 60% of the amount used on an annual basis.

Can cash be deposited/withdrawn from my account?

Yes, as per the rates specified in the schedule of charges provided to you at the time of opening the account.

Can I balance transfer my existing overdraft facility?


How do I maintain a good transaction track record for renewal?

By making timely payment of interests and credit summation into the account. Assessment of track record is also based on the number of times the account is in overdrawn status and the number of cheque returns.

What are the benefits of routing transactions in my OD account regularly?

  • Increased inflow in your account reduces daily outstanding and thus also your monthly interest payments.
  • Adjustment of credits in the account towards debit of interest payments would save you the effort of making timely interest payments, thus reducing penal interest to nil.
  • Ensures that the account is not overdrawn.
  • Enhances your credit rating, thus facilitating easy renewal as well as increasing your limit.