ICICI Bank has launched a overdraft facility against home loans for salaried customers. The Home Overdraft facility will enable a salaried customer to seek loans up to Rs. 1 crore for personal needs against his/her property.
In a statement, the bank said: “This offering provides customers with the dual advantage of a term loan and an overdraft facility.”
“While the term loan provides customers with quick funds for immediate needs, the overdraft facility offers them the flexibility to access funds instantly for expenses, as and when required.”
Customers can use the funds for an array of personal requirements, including education, medical treatment, home renovation, marriage and overseas travel, the statement added. The minimum and maximum loan over the Home Overdraft facility is Rs. 5 lakh and Rs. 1 crore, respectively.
Customers can avail themselves of minimum 10 per cent of the total amount as term loan and maximum 90 per cent as overdraft. The bank said for term loan, equated monthly instalment (EMI) will be applicable. For overdraft, interest is charged only on the utilised amount for the period the funds are used. The new product will offer the flexibility of sweep in and reverse sweep facility.