Working Capital Loans FAQs
Working Capital Loans
Can the Overdraft/ Cash Credit facility be used for any other purpose?
The facility availed of can be used only for working capital requirements like payment to debtors or towards inventory or expenses. It cannot be used for other purposes — not even for long-term investment in assets, for which a Term Loan may be used.
What are the benefits of routing transactions in my OD account regularly?
- Increased inflow in your account reduces daily outstanding and therefore reduces monthly interest charged to your account.
- Adjustment of credits in the account against debit of interest charged will save you the effort of making timely interest payments, therefore avoiding any penal interest.
- Ensures that the account is not overdrawn.
- Enhances your credit rating, thus facilitating easy renewal and limit enhancement.
How do I maintain a good track record for my OD facility?
A good track record can be maintained by ensuring the following:
- Servicing the interest that is debited to your account on a monthly basis
- Maintaining requisite credit summation as per credit summation norms
- Ensuring account never reflects in overdrawn status
- Ensuring there are no/low number of cheque returns.
What is an overdraft facility?
A limit is set up in the Current Account which allows withdrawal of any amount up to the sanctioned limit. Interest is charged daily on the outstanding amount.
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?
The processing fees can be paid by cheque, Demand Draft (DD) or Auto Debit.
How long does it take for the working capital loan to be sanctioned?
Loans are normally sanctioned within four (4) working days after submission of all pre-sanctioned documents. After sanction, it usually takes up to four (4) working days in furtherance for the loan to be disbursed or the OD limits to be set up. Click here to navigate.
Can cash be deposited/withdrawn from my loan account?
Yes, but charges will be levied as per the Schedule of Charges provided to you at the time of opening the Loan Account.
Can I balance transfer my existing overdraft facility?