ICICI Bank - 8.05% for Banking Services - MSME & SME (OD/CC) Loan
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Last updated: 19 Sep 2025, 02:29 PM
ICICI Bank MSME & SME Overdraft (OD)/Cash Credit (CC) Loan: Flexible Funding for Business Success
ICICI Bank Limited, one of India’s leading private sector banks headquartered in Mumbai, offers Overdraft (OD) and Cash Credit (CC) facilities under its MSME and SME business loans portfolio. These revolving credit lines provide working capital support for Micro, Small, and Medium Enterprises (MSMEs/SMEs), allowing withdrawals up to a sanctioned limit with interest charged only on the utilized amount—ideal for managing inventory, receivables, payroll, or seasonal cash flow needs
In-Depth Details
Key Highlights
- Products Offered:
- Business Banking Working Capital Loans: Cash Credit, Overdraft, and composite facilities (term loans, invoice discounting, export credit) for MSMEs/SMEs with turnover up to ₹250 crore.
- Special Schemes: Collateral-free loans under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) up to ₹5 crore; Insta OD (pre-approved for existing customers); Loan Against Property; Dealer/Vendor Finance; and government-backed schemes like PMMY (Pradhan Mantri Mudra Yojana) for micro units.
- Loan Amount: ₹10 lakh to ₹5 crore (collateral-free up to ₹5 crore under CGTMSE); higher limits (up to ₹50 crore) for secured SME facilities based on turnover, financials, and collateral.
- Tenure: Revolving (1-3 years, renewable annually); flexible repayment aligned with cash flows; moratorium up to 6 months for eligible units.
- Interest Rates (as of September 2025): Linked to I-MCLR (ICICI Marginal Cost of Lending Rate, ~8.5%) + spread; starting from 9% p.a. for MSMEs (up to 12-18% based on risk profile, credit score, and collateral); concessions of 0.25-1% for women entrepreneurs, priority sectors, or high CIBIL scores.
- Eligibility Criteria:
- Business vintage: Minimum 1-3 years (1 year for Insta OD).
- Annual turnover: ₹10 lakh to ₹250 crore (MSME classification via Udyam: Micro <₹5 crore, Small <₹50 crore, Medium <₹250 crore).
- Credit score: CIBIL 700+ preferred; positive cash flow and Udyam registration mandatory.
- Sectors: Manufacturing, trading, services (excluding speculative activities); priority for SC/ST, women-led, or rural businesses.
- Collateral: Optional (CGTMSE covers 75-85% for loans up to ₹5 crore); accepts property, receivables, FDs, or securities.
- Features & Benefits:
- Interest only on utilized amount for cost efficiency.
- Quick drawdown via cheques, ECS, or digital channels.
- Digital application and tracking via iBizz app or Internet Banking; turnaround time: 7-15 days (Insta OD: 24 hours for pre-approved).
- No processing fees for loans <₹5 lakh; doorstep banking for document collection.
- Additional perks: GST-based financing, forex support, and integration with trade finance solutions.
- Required Documents:
- KYC: PAN, Aadhaar, address proof.
- Business: Udyam certificate, GST returns/ITR (last 2 years), profit & loss statements.
- Financials: Bank statements (6-12 months), projected cash flows.
- Collateral (if applicable): Property/receivables valuation documents.
