What is salary plus overdraft , How to avail Instant Overdraft Facility Against Salary ?

Today we are going to explain the Overdraft facility against salary which is offering by ICICI Bank. FlexiCash is a facility offered to selected ICICI Bank Salary Account customers, whereby they can avail an Overdraft facility to meet unplanned or recurring expenses. It is designed to protect ICICI Bank Salary Account customers from having to cut down on their expenses, due to low funds by providing short-term instant credit.

What is Overdraft against Salary :- 

Banks offer overdrafts for the salaried individuals against their salary too. You can get an overdraft limit of up to 2-3 times your salary but that may vary from bank to bank. To avail such an overdraft you need to have a salary account with the said bank. Such a facility is also called a short-term loan facility. Bank overdraft balance sheet is the primary source for banks to sanction borrowing limits.

Features of Overdraft Facility Against Salary - FlexiCash:-

• Interest charged only on amount and tenure of utilization.
• No documents required.
• 100% digital process.

How Do I Apply For Overdraft Against My Salary Account Through Net Banking:-

Overdraft Against Salary Account (Insta FlexiCash) Is Offered Only To Select Customers Of ICICI Bank.

• Click Here To Check The Offer.
• Log In Using Your Debit Card Or Net Banking User ID.
• If You Are Eligible For The Offer, You Will Be Redirected To The Offer Page To Avail Insta FlexiCash.

Maximum Salary Overdraft limit - 1.25Lakhs to 1.5 Lakhs .

OD Against Salary - Features & Benefits: -

Features	Benefits
Pay only for what you use	Pay interest on the amount you use and for the period you use it for
Flexible Repayment	Flexibility to clear the outstanding limit at your convenience, only the interest due to be paid every month
Digital process for pre-approved customers	Avail of facility instantly by applying online with no documentation
Auto sweep-in facility	Reduced interest burden due to the auto sweep facility from the Salary Account to the overdraft account
Auto Renewal	Automated process of renewal of overdraft limit
Pre-closure facility	Repay the amount whenever you want without any pre-closure charges

 

Overdraft Against Salary - Fees and Charges:-

• Processing fee starting from Rs 1,999 + GST up to maximum Rs 2,999 + GST .
• Annual renewal fee of Rs 1,999 + GST.
• Late payment fee of Rs 500 + GST (if applicable).
• Rate of interest between 12% p.a. to 14.1% p.a.

For example: If you have a FlexiCash limit of Rs 1,00,000 with an interest rate of 12.5%. p.a. and you utilise Rs 10,000 for 15 days, you would be charged interest of Rs 51.37 (Rs10,000 * 15/365 * 12.5%).

FAQ:- 

Q1. Which bank provides an overdraft facility?

Ans: Almost every public or private sector bank in India provide Overdraft facility to its customers. However, the minimum and maximum loan amount, interest rate and repayment tenure set by banks may differ and shall depend on the applicant’s profile, financial history and repayment capacity.

Q2. What is salary plus overdraft?

Ans. Salary Plus- Avail Bank Overdraft Against Salary in India ...

You can avail up to Rs 1.25 lakhs as an overdraft and pay interest only on the amount used and the duration of utilization, which means you can utilize Rs. 1 lakh for an interest of just Rs. 41.09 per day.

Q3. Can I withdraw money from Overdraft?

Ans. Yes, Overdraft is a credit facility that allows borrowers to utilize money in portions from the total sanctioned limit.

Q4. What happens if I can’t pay my overdraft?

Ans. If you are unable to pay the outstanding overdraft amount, then the bank has the right to deduct the balance from your existing savings or current account.

Q5. How long can a bank account be overdrawn?

Ans. The time duration of a bank account to be overdrawn is defined by the bank itself and depends on the relationship of borrowers with the respective bank.

Q6. Who can offer Overdraft facility?

Ans. An overdraft can be offered by most of the financial institutions and some of the leading banks include SBI, HDFC Bank, Axis Bank, ICICI Bank, Punjab National Bank, etc.

Q7.. What is the treatment of a bank overdraft on a balance sheet?

Ans. A bank overdraft is as same as a bank account that can have a negative balance, up to the sanctioned overdraft limit. Example: If your bank account has Rs. 10 lakh in the bank and you withdraw Rs. 12 lakh for business purposes, an overdraft loan is a by-default loan for the extra Rs. 2 lakh. By withdrawing Rs. 12 lakh from your bank account, the balance will be zero and further even negative. Banks will charge an interest rate on an extra amount borrowed of Rs. 2 lakh.

Q8. Which bank provides an overdraft facility?

Ans: Almost every public or private sector bank in India provide Overdraft facility to its customers. However, the minimum and maximum loan amount, interest rate and repayment tenure set by banks may differ and shall depend on the applicant’s profile, financial history and repayment capacity.

Q9. Can I withdraw money from Overdraft?

Ans. Yes, Overdraft is a credit facility that allows borrowers to utilize money in portions from the total sanctioned limit.

Q10. What happens if I can’t pay my overdraft?

Ans. If you are unable to pay the outstanding overdraft amount, then the bank has the right to deduct the balance from your existing savings or current account.

Q11. How long can a bank account be overdrawn?

Ans. The time duration of a bank account to be overdrawn is defined by the bank itself and depends on the relationship of borrowers with the respective bank.

Q12. What is the treatment of a bank overdraft on a balance sheet?

Ans. A bank overdraft is as same as a bank account that can have a negative balance, up to the sanctioned overdraft limit. Example: If your bank account has Rs. 10 lakh in the bank and you withdraw Rs. 12 lakh for business purposes, an overdraft loan is a by-default loan for the extra Rs. 2 lakh. By withdrawing Rs. 12 lakh from your bank account, the balance will be zero and further even negative. Banks will charge an interest rate on an extra amount borrowed of Rs. 2 lakh.

Q13. Who can offer Overdraft facility?

Ans. An overdraft can be offered by most of the financial institutions and some of the leading banks include SBI, HDFC Bank, Axis Bank, ICICI Bank, Punjab National Bank, etc.

Q14. Which bank is best for overdraft against salary?

Ans . ICICI bank & HDFC bank