ICICI Flexicash is a line of credit the bank provides to its salaried customers for emergency uses. The product is quite helpful in meeting the sudden requirements for funds.
If you maintain a salary account at ICICI Bank and you require quick funds instantly, then you can go for it.
Let Us See, What’s In It For Us?
It’s great that the bank offers such an online scheme to its end users. But let’s see what’s in it for us. Are there any hidden terms and conditions of the loan? So, here it is.
The process of applying is quite simple and less time-consuming. All you need is either active Internet banking or an ATM card. When you login to the bank website to apply, you may see these options: Internet banking and ATM cards.
ICICI Flexicash, an easy way to get instant fund against your salary. Best suited for emergency fund requirement such as consumer goods, school fees, etc which are of short term requirement. ROI is high and as such availing big amount would be better if compared to other loan option.
Select your preference and carry on. The process will be completed in 4 steps.
- Check Eligibility.
- Get the Offer.
- Complete your application, and
- Upload your documents.
When you are eligible for the loan, your application process will start instantly, but here is the catch: Unlike SBI overdraft loans for salaried employees, Flexicash has loan processing fees and limit renewal fees.
In this article, we will dissect the product and find out its advantages as well as its disadvantages.
Advantages of ICICI Flexicash.
A number of useful benefits come along with this flagship product of the bank. It caters to people who are in a regular profession. Be it a government job or a multi-national company’s job. These people can get the following benefits from ICICI Flexicash.
| Serial No. | Benefits |
| 1 | The process is simple and less time-consuming. Instant processing is the best thing that you can get when you have a tight schedule. |
| 2 | Pre-approved loan: It means before you get the sanction letter, you would get almost 100 % commitment from the bank. |
| 3 | Flexible repayment: You can repay the loan overdue anytime without any pre-payment penalty |
| 4 | Instant disbursal: ICICI Flexi can be disbursed instantly if you have your KYC in place. |
| 5 | Auto-sweep facility: Your salary can be directed to this account with the auto-sweep facility that comes along. This would lower the interest burden on the Flexi account, as the interest rate will be calculated based on the used OD limit. |
| 6 | Automated renewal process: You don’t have to visit the bank to renew the OD limit. The system will take care of it every year. |
| 7 | No pre-payment penalties: You pay as you like. |
| 8 | Pay interest on what you use: The good part of using an overdraft account is that, banks recover interest on the used OD limit only. This means that, if controlled properly, you could actually lower the interest that you pay. |
| 9 | No documentation at all. The provision is that your bank account should be KYC-compliant as per RBI rules. |
| 10 | OD limit set as per your salary: It depends on how much salary you get. The eligible amount will arrive on your net salary, which gets credited to your bank account. |
Disadvantages of ICICI Flexicash
These are a few of the disadvantages of availing of an ICICI Flexi Cash Overdraft loan against your salary.
| Serial No. | Downside |
| 1 | The processing fee is reasonable but consumers would prefer lesser fees on OD account |
| 2 | Renewal charges might leave you dissatisfied. |
| 3 | At 12% to 14 %, the interest rate is considered costly. |
| 4 | ICICI Flexicash has a short tenure, which is 12 months. It means every year it will get auto-renewed until you put up a cancellation request. It also means, every year there will be a renewal charge of ₹1999 plus GST. |
| 5 | The facility is available only to certain groups of people. It’s mainly designed for salaried people. |
The convenience of ICICI Flexi Cash
When we compare the pros and cons of ICICI Flexi Cash, we have found a couple of things that make us think ICICI Flexi is worth trying.
Since the rate of interest is high, if taken at a lower OD limit, it would serve you well when you have a shortage of funds.
In fact, for easy quick funds, availing of an overdraft is one of the best options. You don’t have to worry about the repayment of your dues. As it has an auto-sweep facility, the system would tackle the repayment issue on its own.
That’s the reason why ICICI Flexi Cash is quite convenient for meeting your sudden fund requirement.
Conclusion and Final Thoughts
The ICICI Flexi Cash overdraft loan is good, but you should not rely on it for bulk fund requirements. The reason is simple. It has a high-interest rate. If the OD limit is high, it will directly correspond to high monthly interest demand. And, it would impact your income.
It’s very convenient for quick fund requirements. For instance, when you want to buy some consumer stuff or if your children’s tuition fee is due for payment, ICIC Flexi Cash would certainly give you a delight as the processing of loans is quite simple.
It does not require any papers as long as your bank account is KYC-compliant. Just login to ICICI Internet banking and avail the facility as and when it is needed.
You may also want to know about SBI Overdraft loans against your salary. Click here to know about it.
Useful article, thank you. Top article, very helpful.