The cash advance or cash withdrawal feature is available on most of the credit cards offered by Citibank. It allows the cardholders to withdraw cash from ATMs using their credit cards. The facility acts as an emergency fund or instant loan as it can be availed at any point of time without submitting any documents to the bank nor by getting any further approvals.
Withdrawing cash using a credit card is as simple as withdrawing cash using a debit card from the ATM. However, with regards to credit card cash withdrawal, there are a few fees and charges involved. Hence, cardholders should be aware of all the terms and conditions of Citibank credit card cash advance feature before availing it.
Provided below are all the details one needs to know about the cash advance feature.
While the basic feature of a credit card allows users to conduct card-based transactions, the cash advance feature, on the other hand, enables cash withdrawals using a credit card. The Citibank card cash advance feature thus allows eligible Citibank credit card users to avail the cash withdrawal benefit using their credit cards. The facility can be availed at all domestic and international ATMs that accept Visa or MasterCard/Maestro cards.
The cash advance limit on a credit card is the amount available for cash withdrawal on the card. Just like the credit limit on the card, cardholders should withdraw cash within the cash limit and not beyond that.
Typically cash limit is a percentage or portion of total credit limit on the card. For instance, if the total credit limit on the card is Rs.50,000, cash limit would be around 30-40% of the credit limit.
Citibank also sets a cash limit on its credit cards. However, the cash withdrawal limit is typically communicated to the cardholder at the time of card issuance. As each card carries a different cash limit, you need to check the terms and conditions of your card to know the credit limit and cash limit on your credit card. Further, the bank may also set a cap on the minimum and maximum cash allowed for withdrawal per ATM transaction. Also, the withdrawal limit would be different for transactions made at Citibank ATMs and non-Citibank ATMs. All such details will also be communicated by the bank at the time of delivery of the card.
Cash advance fee is the charge levied for every cash withdrawal made using a credit card. Everytime you withdraw cash using your credit card, you will be charged with a transaction fee which will be added to your next month billing cycle.
Citibank collects a credit card cash advance fee of 2.5% of the withdrawn amount or Rs.500, whichever is higher. If you withdraw twice a day, you will be charged for both the transactions based on the billed amount. Further, the cash advance fee also attracts finance charges equal to the charges levied on the withdrawn amount. And the interest will be charged from the date of transaction till the amount is repaid in full.
Just like the regular credit card transactions, credit card cash advances also attract finance charges or interest charges. However, the only difference between the two transactions is that while card transactions have interest free period, cash transactions are not eligible for any such period. All the cash withdrawals will be charged with interest as applicable from the date of transaction till the due is cleared in full.
Citibank charges a different interest rate on cash advances for each credit card. It also reviews the rates periodically after analysing certain performance parameters including the usage of the card, total spends, repayment pattern, default payments, if any, and other credit information received from the credit bureaus.
The interest will be charged from the date of transaction till the amount is paid back in full. Hence, there is no interest free period for cash advance transactions.
Withdrawing cash using a Citibank Credit Card is almost similar to withdrawing cash using a debit card. All you need to do is visit any of Citibank ATM kiosks, insert your credit card in the card slot and follow the instructions for cash withdrawal. Step-by-step process is provided below.
Once the cash is dispensed, you will receive a message on your registered mobile number. The amount will be debited from the total cash limit and credited to the total outstanding on the card. Before withdrawing the cash using the credit card, you need to check the available cash limit on the card to prevent over withdrawal.
A summary of all the charges applicable on Citibank cash advance facility is provided below.
|Description of Charges||Citibank Credit Card Cash Advance|
|Interest Free Period||NIL|
|Cash advance fee||2.5% of cash withdrawn or Rs.500 (whichever is higher)|
|Minimum repayment amount||5% of the outstanding due, subject to a minimum of Rs.100|
|Cash advance limit||Communicated at the time of card delivery|
|Finance charges (on revolving credit)||3.1% - 3.5% per month or 37.2% to 42% p.a.|
The advantages and disadvantages of using Citibank credit card cash advance facility are listed below.
Yes, you can withdraw cash from other bank ATMs using your Citibank credit card. However, the cash advance fee may vary from Citibank ATMs to non-Citibank ATMs.
Citibank charges a cash advance fee of 2.5% of the withdrawn amount subject to a minimum of Rs.500. The charge is applicable only when the facility is availed at Citibank ATMs.
You can apply for cash limit enhancement on your credit card only after using your Citibank Credit Card for at least for 12-18 months. Before applying for limit enhancement, you need to call the bank’s customer service desk to check whether or not your card is eligible for limit enhancement.
You can either call Citibank credit card customer care or check your Citibank internet banking account to find the total cash limit and available cash limit on the card.
The reward points programme offered by Citibank is not applicable for cash advances or cash withdrawals using credit card. You will not earn any reward points if you withdraw cash using your Citibank Credit Card.