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  • Credit Card Cash Withdrawal

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    Credit cards have revolutionised the way people look at availing loan or any other credit line in India. Of the many features available on a credit card, the cash advance feature is the one which provides instant liquid cash to the cardholders. Unlike other loans, the credit card cash advance facility does not require any other approvals from the bank nor requires any other documentation. It’s instant and can be withdrawn from any bank ATM located in and outside India. However, the cash advance feature comes with certain terms and conditions, which every credit card holder should know before availing the facility.

    Mentioned below is a detailed guide about the credit card cash withdrawal feature along with the associated fee, charges and other details.

     

    What Is Credit Card Cash Withdrawal ?

    Credit card cash advance is the technical term for credit card cash withdrawal facility. It allows credit cardholders to withdraw cash using their credit cards at the bank’s ATM. As credit cards are typically used for card transactions, the cash withdrawal facility is an additional feature offered by the banks. Using the facility cardholders can withdraw cash within permissible limits and shall repay the same along with interest and other charges.

    The feature may not be available on all the credit cards and the permissible limits for cash withdrawal may also vary from card to card along with the finance charges. Hence, all the credit card users need to be aware of all such things applicable on their card.

    You can either check the terms and conditions of your card or call the bank’s customer care to know the details about your credit card cash advance facility.

     

    What Is Credit Card Cash Advance Limit And How Is It Different From Credit Limit?

    While credit limit is the maximum amount that can be spent on a particular credit card, cash limit is the maximum cash one can withdraw using a credit card. Cash limit is typically included in the credit limit available on a credit card. Most banks offer 20% - 40% of the total credit limit as cash limit. For instance, if the total credit limit on a card is Rs. 1 lakh, you can withdraw up to Rs.20,000 to Rs.40,000 as cash using the card. The rest should be spent for card transactions only.

    The cash limit on a credit card are typically communicated by the bank to the cardholder at the time of card issuance.

    The cash limit may not be same across all the credit card variants offered by the bank hence varies from card to card or from customer to customer. The cash limit on a particular card is not fixed and is subject to change at any point of time at the discretion of bank.

    The banks may revise the limits periodically or by considering various parameters including spending patterns on the card, repayment behaviour of the cardholder, default payments and other credit information available from credit bureaus. Any such revisions will be communicated to the customers through messages or e-mails.

     

    What Is Credit Card Cash Advance Fee?

    Credit card cash advance fee is a fee charged on every cash withdrawal transaction made using a credit card. Every time a credit card is used to withdraw cash, a cash advance fee, which typically is the percentage of the withdrawn amount, will be charged.

    Typically banks charge 2.5% to 3% of the withdrawn amount subject to a minimum amount of Rs.300 to Rs.500 as credit card cash advance fee. The fee will reflect in the coming month’s billing statement. Cash advance fee also attracts a finance charge at a rate similar to that charged on the withdrawn amount. It will be levied from the date of withdrawal till the amount is paid back in full.

    Even when you conduct multiple cash advance transactions on a given day, you will be charged for every transaction based on the withdrawal amount.

     

    Cash Advance Fee Charged By Top Five Banks

    Credit Card Credit Card Cash Advance Fee
    HDFC Credit Card 2.5% of withdrawn amount, subject to a minimum of Rs.500
    ICICI Credit Card 2.5% of withdrawn amount subject to a minimum of Rs.300
    Axis Bank Credit Card 2.5% of withdrawn amount, subject to a minimum of Rs.250
    SBI Credit Card 2.5% of withdrawn amount subject to a minimum of Rs.300
    Citibank Credit Card 2.5% of withdrawn amount, subject to a minimum of Rs.500
     

    Finance Charges On Credit Card Cash Withdrawal

    Just like the regular credit card transactions, cash advances on credit cards also attract finance charges. The rate at which the interest is charged is at the monthly percentage rate and will be levied from the date of transaction till the repayment is made in full. Banks typically charge a rate of interest of 2.5% to 3.5% per month on all cash advances.

    The rate varies from one bank to another and from one card variant to other and the same will be communicated to the cardholder at the time of card issuance. Further, the rates are dynamic and are subject to change at the discretion of bank. Besides the external factors that the affect the overall interest rate on cash advances, usage of the card, frequency of spends, repayment behaviour, etc., are other card specific factors that impact the interest rates charged on a particular credit card.

     

    Interest Levied On Credit Card Cash Advance By Top Five Banks

    Bank Name Interest rate on credit card cash advance
    Monthly rate Annual rate
    HDFC Credit Card 1.99% - 3.5% 23.88% - 42%
    ICICI Credit Card 2.49% - 3.5% 29.88% - 42%
    Axis Bank Credit Card 2.95% - 3.5% 35.4% - 42%
    SBI Credit Card Upto 3.35% Up to 40.2%
    Citibank Credit Card 3.1% - 3.5% 37.2% - 42%
     

    How To Withdraw Cash Using A Credit Card?

    Withdrawing cash using a credit card is as simple as withdrawing cash using a debit card from an ATM. You just need to walk-in to any of your closest ATM kiosks to with your credit card and follow the instructions for cash withdrawal to get the money. Credit card cash withdrawals can be done at ATMs of any bank irrespective of the credit card issuing bank. However, a few banks may charge a different cash advance fee for withdrawing cash using other bank ATMs. A few banks may also put a cap on the minimum and the maximum cash that can be withdrawn per ATM transaction or per day.

    Hence, you need to know the terms and conditions applicable for your card along with the associated fees and charges before availing the cash advance facility. Also, it is important to know the available cash limit on the card before withdrawing the cash to prevent using over the limit. If the overlimit transaction is processed, the bank will also charge an overlimit fee along with the finance charges.

     

    Impact Of Credit Card Cash Advance On Credit Score

    Cash advances on credit card will not be reported separately to the credit agencies. The entire outstanding due and the non-payment of the same will be reported as a whole. Hence, taking cash advance on your credit card may not impact your credit score. However, due to the high interest rates (accrued on a daily basis) and additionals fees and charges levied on credit card cash withdrawal, it may sometimes become difficult for you to keep up with the monthly payments.

    When you fail to pay even the minimum amount due, it will affect your credit score and will reflect badly in the credit report. As long as the you make timely payments there will be no effect on your credit score due to cash advance.

     

    Advantages Of Disadvantages Of Credit Card Cash Withdrawal

    The cash advance feature has both pros and cons just like any other feature. However, when used properly it acts as an emergency fund and saves you in times of cash crunch. Let’s look at the benefits and drawbacks of the feature in detail.

    Benefits Of Credit Card Cash Advance Feature

    • Instant cash: The primary advantage of credit card cash advance feature is that it provides instant cash in liquid form. As ATMs are accessible 24x7 and available in every nook and corner in and outside the country, you can have access to cash at anytime across the country.
    • No approval, no documentation: Unlike other forms of credit such as personal loan or other loans, the cash advance feature does not require any other approval from the bank, nor requires you to submit any documents to avail the facility. You just need to use your credit card at the ATM to withdraw cash.
    • Flexible limits: Consistent spending patterns, a decent track record without any late payments or defaults will make you eligible for limit enhancement on your credit card. Once the bank approves your credit limit enhancement request, your cash limit will automatically get enhanced.

    Drawbacks Of Credit Card Cash Advance

    • Fees and charges: Everytime the facility is availed, a cash advance fee will be levied which further attracts finance charges which will be charged from the date of transaction till the repayment is paid in full.
    • Interest rate: Though the interest rate on cash advance is similar to the interest charged on card transactions, the interest on cash advances will be charged from the date of transaction till the payment is made in full making it expensive.
    • Reward points: The credit card transactions involving cash advances are not eligible for any reward points. No matter how big the transaction is, you will get no reward points for credit card cash withdrawals.
    • Interest free period: Another factor that makes credit card advances expensive is that, interest will be charged from the date of transaction till it is paid in full. There is no interest free period on cash advances and the interest will continue to pile up till you repay your outstanding completely.

    Frequently Asked Questions (Faqs) On Credit Card Cash Advance Facility

    1. Are all credit cards eligible for cash advance?
    2. Not all the credit cards are eligible for cash advance feature. Providing the facility is completely at bank’s discretion. You need to check with your bank to know whether or not your credit card has that feature.

    3. How do I know the cash limit on my credit card?
    4. The cash limit on you credit card will be provided in your credit card welcome kit or in your credit card terms and conditions. You can also check your credit card net banking account to know your total cash limit and available cash limit. Alternatively, you can also call your bank’s customer service helpline to get the details.

    5. Can I withdraw cash using other bank ATMs?
    6. Yes, you can withdraw cash at any bank ATM. However, the cash advance fee may vary from one bank’s ATM to another bank.

    7. How is interest calculated on cash advances?
    8. The interest on credit card cash advances is similar to the interest on card transactions and will levied at a monthly percentage rate calculated on revolving credit basis. However, unlike card transactions there is no interest free period for cash advances and the interest will be charged from date of transaction till the payment is made in full.

    9. How to make credit card payments towards cash advance alone?
    10. If the outstanding due on your credit card contains only cash advance, any payment made towards your credit card will be considered for cash advance. In case, the outstanding due contains other spends such as card transactions, EMIs, balance transfers and others, the payment received will be adjusted in a sequential order beginning with minimum amount due, which includes EMIs on loans, all applicable taxes, 5% of total outstanding; fees and other charges, interest charges, outstanding related to balance transfer, purchases and finally cash advance. Hence, in order to make payment towards cash advance, you need to clear all your dues.

      

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    Credit Card Cash Withdrawal Reviews

    • American Express Credit Card
      "One of the best company"
      0.5 5.0/5 "Blown Away!"
      I'm holding the Gold card from Amex. They told me that they are charging Rs. 5000 annually but i don't mind because they are providing world class services. When i lost the card, they have sent me a new card without any fee. Customer care service is really good and I'm satisfied with the rewards points system.
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 08, 2019
    • HSBC Bank
      HSBC Bank Credit Card
      "Need to improve the telecaller service in HSBC"
      0.5 1.0/5 "Really Bad"
      When I applied for HSBC visa platinum card, they said need to submit minimal documents. They charging one time fee for the card and the executive who came for documents collection, asked me N number of documents and his behavior was very un professional and he shows attitude.
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 08, 2019
    • SBI Cards Credit Card
      "Nice Card"
      0.5 4.5/5 "Excellent!"
      SBI card is good because they have provided me a BATA showroom coupon and pizza hut coupons on a regular basis. Its a SBI prime card hence i need to pay the annual fee since i have used the limit of Rs. 50000, they have waived off my annual fee. I am receiving good discounts and rewards points on this card.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • Standard Chartered Bank Credit Card
      "Helpful for the cardholder"
      0.5 4.5/5 "Excellent!"
      Its almost 10 years since i'm using the credit card from Standard chartered bank. When i was working for HSBC, they have provided me this card and the service has been good till now. Actually they have increased my limit regularly and its easy to make the payment since the branch is available near to my place. They are offering lots of offers like EMI conversion.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "Policy should be clear with the customer"
      0.5 2.0/5 "Expected more"
      Indusind bank people called me and asked to submit the documents. But in my existing credit card, i have used the limit more than 80% due to that they asked me to do a payment for my existing card if they could informed me before providing the documents, it would be fine.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • ICICI Bank Credit Card
      "Good card for shopping purpose"
      0.5 5.0/5 "Blown Away!"
      I am holding ICICI bank credit card for more than one year. I had applied through bank directly. It is a life time free card and the credit limit was okay of 20K. They have called me to provide other details but I have asked them to enhance the limit, I need to wait for 1-3 months. I get one plus one free movie ticket in book my show and dining offers as well. Based on the usage I get cash back . Mostly I spend for shopping. It is a coral card .
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied a credit card with INDUSIND bank. I got a call for verification process on time from bank and executive was good in response. It is a life time free credit card. But the credit limit is not intimated. Since it was a life time free so chosen this card. Banker has closed the card due to not eligible criteria. I have not submitted any documents to them. They have told after 3 months I will get a call from them for a card offer.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "Need to improve their service"
      0.5 1.0/5 "Really Bad"
      Through online I was applied a credit card with INDUSIND bank. But on delay basis I got a call from bank for further verification and the response was not good. For a verification itself they have called for multiple attempts. I am not aware about the credit limit.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 08, 2019
    • Kotak Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      Its good to use the credit card from Kotak Mahindra bank. For past 1.5 years, i have been using this card. They gave me a limit of Rs. 50000. There is no yearly charges for this card. I use this card for offline purchase and movie ticket booking. If i make the payment, it takes 2 days to update in the card.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 08, 2019
    • SBI Cards Credit Card
      "Average Card"
      0.5 3.0/5 "Satisfactory"
      Whenever I contact them there is no proper response from SBI customer care service. Every month, they are charging me Rs. 3000, when i inquired about the same, there is no proper reply given by the executive. I am using this card for last 8 months.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 08, 2019
    • HDFC Bank Credit Card
      "Super Card"
      0.5 5.0/5 "Blown Away!"
      I have a salary account with HDFC bank based on that they have provided me a credit card. I am getting a petrol offer, purchase offer and movie vouchers. They have not increased the limit so far. Its a free card to use. I'm receiving the OTP notification immediately whenever i do the transaction.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 08, 2019
    • YES Bank Credit Card
      "Good card"
      0.5 3.0/5 "Satisfactory"
      I get good feed back from customer regarding yes bank credit card, hence i have chosen this card. Due to the below salary norms they have rejected my credit card. When i received a verification call, i have given all the details then they said I'm not eligible to get this card.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 08, 2019
    • Kotak Credit Card
      "Best Card"
      0.5 5.0/5 "Blown Away!"
      Kotak mahindra bank is providing 24*7 customer care service and they provides me a proper response. In the IVR, i can easily choose the regional language. I get a rewards points based on my purchase. When i want to redeem the rewards points, i could not avail the same. If i use the card for petrol and fuel, i get a sur charges waiver. I have a PVR league card and i get the benefits on movie tickets and i get a cashbacks on that.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • Axis Bank Credit Card
      "Best Card"
      0.5 5.0/5 "Blown Away!"
      In Axis bank, I'm holding my zone credit card. I get the movie ticket offers and shopping. Based on the rewards points, i have done a lots of purchase. I have already recommend this card to my friend since I'm using it for more than 5 years. They charged me a annual fee of Rs. 499 and it will get waived off based on the rewards points. I make the payment through online.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "No proper follow up"
      0.5 1.0/5 "Really Bad"
      I had applied indusind bank credit card through online and I have uploaded all the documents through online. Even though my credit score is good, they have rejected my application and they haven't informed me about the reason as well. I haven't received any proper response from this bank.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 08, 2019
    • YES Bank Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I received a call on time for credit card verification process which was applied with YES bank through online. Since I am holding existing credit limit of 70K so this card be eligible up to 1-5L. it is a life time free card. Banker has intimated offers but am not aware now. The card process was closed from my end.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "Need to be process at earlier"
      0.5 4.0/5 "Great!"
      INDUSIND bank offered a credit card through online on a month before. I received a call on delay basis of 3rd day for further process. They have intimated as will send a executive to collect the documents by manual. But no one as turned up. It is annual fee chargeable card. My friends suggest this card to apply so I had chosen it. But without any reason the card process was closed from bank end.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "Useful offers"
      0.5 3.5/5 "Pretty good"
      I haven't go with Indusind bank credit card since I have changed my mind because i decided not to take any credit card. I haven't provide any documents at all. Compared to other this bank was better based on the features. Nobody called me for further process.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 08, 2019
    • HDFC Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      Since I'm working for HDFC bank, they have provided me a credit card which is a life time free card. I was using the money back credit card hence they have given me a good rewards points which is equal to Rs. 0.25 paise. If i use the card in fuel station, they will give a surcharges waiver of Rs. 250 which is a maximum amount. Due to the irregular payment, they have blocked my credit card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 08, 2019
    • IndusInd Bank Credit Card
      "Good Card"
      0.5 4.0/5 "Great!"
      I was applied a card with INDUSIND bank. But they are asking 3 month bank statements, payslip and current address proof in Bangalore address, which i do not have because I'm staying with my friend in hotel. Since i don't have any credit card, hence I have accepted this offer. Card features are good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 08, 2019
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