Zero balance is in the account even then you can withdraw cash in emergency, the bank is giving this facility
new Delhi. By the way, it is necessary to maintain minimum balance in the bank account, otherwise penalty has to be paid. But due to Corona period, people are often in need of money. If you too need money in emergency, but there is not enough balance in the account then there is no need to worry. Because many banks are facilitating overdraft facility. ICICI Bank is also giving this facility to the Salary Account holders. With this, customers can borrow money up to three times their salary as a bank.
The purpose of giving such facility to salary account holders from ICICI Bank is to avoid their EMI or check bounce. For this, the bank will provide short-term instant credit. To take advantage of this facility, customers have to submit an online application to the bank. Also some other paperwork has to be completed.
What is overdraft facility?
In this facility you can withdraw more money from your bank account than the existing balance. In this case, you have to repay the extra money you have taken within a certain period. This is a type of loan that the bank gives you when you need it. There is also interest on this. Which occur on a daily or monthly basis. Banks or NBFCs decide the amount you can withdraw in overdraft facility. There are two types of these. First secured and second unsecured. For the first overdraft facility, you can pledge some security, such as FD, shares, house, salary, insurance policy, bonds etc. These things are mortgaged to banks or NBFCs. Which can be redeemed on repayment later. In the other option, you will not need to provide anything as security, it is called unsecured overdraft.
Special features related to overdraft facility
-To avail this facility, log in to your internet banking account. Now go to the Offers section. After this, now check the pre-approved OD offer and then apply.
In FlexiCash, interest is calculated at a fixed rate.
– Customers in overdraft get the flexibility to pay the outstanding limit as per their convenience.
– There is no foreclosure charge in replying the OD amount taken.