How to Close ICICI Overdraft Against FD Online?

If you have taken out an ICICI overdraft against FD, you might be considering closing it when you have extra funds. Should you go ahead and close it, or is it better if you continue for a while?

Today, we are discussing some of the valid points in regards to this issue. We will learn the best way to handle the ICICI OD against FD.

ICICI Overdraft Against FD

ICICI Overdraft Against FD

The ICICI OD against FD is a simple loan that the bank allows you to enjoy the limit while keeping your FD as a security.

When we need a quick fund without undergoing the lengthy process of other personal loans, a loan against FD is one of the best choices. Here’s why its a good option:

  • Whether FD is in your name or in your relative name, you can get the loan instantly.
  • There’s no processing fee for getting the loan.
  • You can pay up anytime you want. There will be no pre-payment penalty.
  • You get up to 90 percent of the FD amount immediately.
  • The interest rate is decent. The ICICI Bank will charge you 2 percent above the corresponding FD rates.
  • It requires the fewest documents. It will be your KYC documents and the FD receipt.
  • The maximum tenure that you can enjoy is 18 months; however, you have the option to renew it multiple times.
  • Since its a secured loan, the bank lends to people who have low credit scores.

That’s why its one of the best quick loans of all the personal loans that you are eligible for. However, banks such as the State Bank of India offers better interest in this regard. You may find 1 percent above the FD rates.

Should You Consider Closing ICICI OD Against FD?

Consider closing ICICI od against FD

Now, that’s the question we have been asking. Should you consider closing it?

If you are someone who likes to stay away from debt, you would preferably terminate the overdraft facility against your fixed deposit. And if you have a shortage of funds right now, you might consider it after a few months or so.

Either way, its always best if you liquidate the loan well and on time. The reason is simple: a loan means an interest payout, and an interest payout will eat up your income.

Reasons Why You Should Consider Closing it

Reasons to close ICICI od against FD

There are several reasons why you should consider closing your ICICI OD against FD.

Here are some of the common reasons that may apply to you as well:

  • Though overdraft loans are great for quick funds, loans always come with payment obligations, which directly impact your savings capacity.
  • ICICI OD against FD offers an attractive interest rate at 2 percent above the FD rates. This will nullify your interest income in the long run.
  • Your FD will be on lien. This means your FD will be in the custody of the bank. It will be usable once you clear the loan dues.
  • A commitment of 18 months, and during the term of the loan, you have to pay interest every month, which may go up to a large amount if you have availed of a larger amount as an overdraft limit.
  • You may fall into a debt trap, which is sometimes hard to get rid of.

That’s the reason why paying off a loan well before its tenure may have a significant impact on your income. It not only relieves you of any debt but also enables you to explore different options for investments.

How to Close Overdraft Against FD in ICICI Bank Online?

How to close ICICI od against FD

When you want to close the ICICI overdraft account that you have taken against your FD, you need to follow certain bank’s guidelines. But it does not have to be a difficult process.

Here’s how you close OD against FD at ICICI Bank:

  • Clear all the dues that you have in the ICICI overdraft account or make the entire amount available in your savings bank account so that the bank can pull it from there.
  • Write an application requesting to close the overdraft facility against your FD.
  • Let the bank know whether you intend to keep the FD as it is or close it.
  • If you want to close the FD, advise the bank where to credit the closure proceed. By default, the bank will credit it to your linked bank account.

The ICICI Bank overdraft agsinst FD cannot be closed online as of now. However, you can close the FD account online. In order to close the OD account, your physical visit to the bank is required.

FD OD Closure Form ICICI Bank

For closing an ICICI overdraft account, you have to write an application or mail it to the bank where you maintain the bank account.

However, if you are looking to close the fixed deposit account, you can use ICICI Form 13, which is basically for FD closure requests.

The above form is for NRI customers; if you are a resident Indian, well, you may write a letter to the bank or surrender your FD advice to close the account.


The closure process of the ICICI overdraft against FD should not have to be difficult. Its quite easy if you know how and whom to contact. For closing the account, there is no such standard format that you can fill in. You have to visit the bank where you maintain the account and ask for its closure.

A formal, handwritten application requesting the closure of your ICICI OD account is sufficient. However, if you paid up the entire amount before requesting it, it would be better. You can do so by writing a cheque to the overdraft account.

Another way of handling the issue is to contact the bank via email. If you have registered an email with the bank account, it is certainly possible to initiate the closure request.

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