Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
Credit card cash advance or cash withdrawal is a facility provided by banks to give the credit cardholders access to cash that they can withdraw using their credit cards during times of crisis. This facility is offered by most banks in India. Almost all the Axis Bank credit cards come equipped with the cash advance facility. However, the bank puts a cap on the amount of cash that can be withdrawn using a credit card and it also varies from card to card. The charges levied on using this facility, which is commonly known as the finance charges, also differ according the type of credit card an individual opts for. Let us take a detailed look at this facility, the benefits that come along with it as well as the charges it attracts.
Cash withdrawal or cash advance limit is the amount of cash the cardholder can withdraw using a specific credit card. Cardholders can withdraw cash using their credit limit within the set limit.
Axis Bank sets different cash advance limits for different credit cards. The cash limit on a particular credit card is communicated to the cardholder at the time of delivery of the card. Also, for a few cards, Axis Bank prefers to keep the cash limit to zero for the first 180 days from the date of issuance. After the completion of this period, the cardholder is allowed to avail the cash advance facility.
Axis Bank, like most other banks in India, charges a cash advance fee. This is a transaction fee that the cardholder needs to pay each time they withdraw cash using their credit card. This fee will be added to their credit card bill in the following statement.
Axis Bank charges a cash advance fee of 2.5% of the amount withdrawn or a minimum of Rs.250 (whichever is higher). For instance, if the cardholder withdraws Rs.1,000 using their Axis Bank credit card, they will have to pay Rs.250 as the cash advance fee in the next billing cycle. However, if they withdraw Rs.15,000 using their Axis Bank credit card through an ATM, they will have to pay Rs.375 as the cash advance fee in the next billing cycle. However, Axis Bank holds the right to change the cash advance fee any time.
In addition to this, cash advances also attract a finance charge from the date the amount is withdrawn using the credit card till it is repaid in full.
When cardholders avail the facility of cash advance, Axis Bank levies a finance charge. Put simply, this is the interest that the cardholder will have to pay on a monthly rate from the date of withdrawal till the amount is repaid in full. Axis Bank levies different finance charges on different cards. The range of interest varies from 2.50% to 3.35% per month. Individuals can check the finance charges of a card before applying for it.
Listed below are the finance charges of a few Axis Bank credit cards:
| Axis Bank credit card variants | Rate of finance charge or interest on cash advance | |
|---|---|---|
| Monthly Rate | Annual Rate | |
| Axis Bank Insta Easy credit card | 2.50% | 34.49% |
| Axis Bank SELECT credit card, Axis Bank Reserve credit card, Axis Bank Vistara credit card, Axis Bank Vistara Signature credit card, Axis Bank Vistara Infinite credit card, Axis Bank Miles or More credit card, Axis Bank Miles and More World credit card, Axis Bank Pride Platinum credit card, Pride Signature credit card, Axis Bank Signature credit card, Axis Bank My Wings credit card | 2.95% | 41.75% |
| Axis Bank Buzz credit card, Axis Bank Neo credit card, Axis Bank Platinum credit card, Axis Bank My Choice credit card | 3.25% | 46.78% |
| Axis Bank Titanium Smart Traveler credit card | 3.35% | 46.78% |
| Axis Bank My Zone credit Card | 3.68% | 46.78% |
Cardholders can withdraw at any of the Automated Teller Machines (ATMs), and not specifically from Axis Bank ATMs. The procedure to avail cash advance from ATMs using a credit card is similar to that of using a debit card.
Listed below are steps that the cardholder needs to follow:
Listed below are the fees and charges levied on the cash withdrawal feature of Axis Bank credit cards:
| Category | Amount |
|---|---|
| Axis credit card joining fee | Up to Rs.30,000 |
| Finance Charges | Ranges from 41.75% to 46.78% per annum |
| The cash withdrawal fee for Fee for Axis credit cards | 2.5% of the amount/ Minimum Rs.250 |
| Cash Payment of fees | Rs.100 per payment |
| Over limit Penalty | 3% of the over limit amount/ Minimum Rs.500 |
| Foreign Currency Transaction Fee | 3.50% of the amount |
| Late Payment Fee | For Outstanding Amount:
|
Like most other features of credit cards, the cash withdrawal facility also has its share of pros and cons. Let us take a detailed look at the advantages and disadvantages of withdrawing cash using an Axis Bank credit card:
Credit limit is the maximum amount of credit the bank provides to a cardholder through a line of credit on a single card whereas cash limit is the portion of it that they can withdraw in the form of cash from an ATM.
It depends on the type of Axis Bank credit card you own. Each credit card offered by Axis Bank has a different cash withdrawal limit which is communicated to the cardholder at the time of delivery of the card.
You will receive an SMS on your registered mobile number each time you withdraw cash using your credit card.
No, you don’t have to get an approval from the bank or inform them before using your credit card to withdraw cash.
It will be included in the following billing cycle and will show up on your credit card statement.
The finance charges of Axis Bank credit card range from 41.75% to 46.78% p.a.
It is the interest free period that can last between 20 to 50 days based on the date of purchase relative to statement generation date.
It is applicable when minimum due amount is not paid by the due date.
Foreign transaction mark up fee is a transaction made in a foreign currency that incur foreign transactions.
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