ICICI Bank has introduced this facility after RBI allowed electronic card issuing to customers availing overdraft facility. An overdraft is also a type of loan called loan against securities (LAS). This facility is also like a personal loan.
ICICI Bank has introduced a debit card facility for customers taking loan against securities. It is the first bank in the country to do so. Bank is offering a debit card with Visa platform to those who want to avail loan against securities from the bank.
With this debit card, customers will be able to pay on the e-commerce portal. With this debit card, they will be able to make online purchases from the Loan Against Securities Amount without any hassle, as well as items purchased from the shop and paid at Point of Sale (POS). It will be automatically renewed.
The customer will get a digital debit card within a day of taking loan against securities, which will be available on the bank’s mobile app iMobile. Customers will be able to use this digital card for online transactions. The customers will get the physical debit card within 7 days. With this debit card, up to Rs 3 lakh POS and online transactions can be done in a day.
Let me tell you that an overdraft is a kind of loan. Due to this, customers can withdraw more money from their bank account than the existing balance. This extra money has to be repaid within a certain period of time and it also attracts interest. Interest is calculated on a daily basis. Overdraft facility can be given by any bank or non-banking financial company (NBFC). Banks or NBFCs decide what will be the limit of overdraft you get.
Government and private banks offer overdraft facilities. Most banks offer this facility on Current Account, Salary Account and Fixed Deposit (FD). Some banks also offer overdrafts in exchange for assets such as shares, bonds and insurance policies. Under this facility, you can take the money you need from the bank and later pay this money. Click here for more information