Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
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    Credit Card Cash Withdrawal

    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 It’s instant and can be withdrawn from any bank ATM located in and outside India.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.

    Credit Card Cash Withdrawal Reviews

    • Bank Bazaar Credit Card
      "Good service"
      0.5 3.5/5 "Pretty good"
      I am using the services of bankbazaar from last 1.5 months, they provide best services when compared to others. Customer support was fine with bankbazaar and there was no call after documents were submitted. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 16, 2019
    • IndusInd Bank Credit Card
      "Looking for better credit limit"
      0.5 3.0/5 "Satisfactory"
      I have my credit card approved with IndusInd bank and the experience was not up to the mark, the credit limit of Rs 50000 is very less when compared to other cards. I expected the credit limit of Rs 1.5 lacs. There was no annual fee charged and i use this card for online purchase. Processing took 20-25 days to complete.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 16, 2019
    • HSBC Bank Credit Card
      "Satisfactory"
      0.5 4.0/5 "Great!"
      I also have a HSBC credit card and the experience is good. The banking system is good and convenient. The process to get the card was smooth. The credit limit is also good and there are no hassles overall. There are also good deals on the card.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 16, 2019
    • Bank Bazaar Credit Card
      "User friendly"
      0.5 4.0/5 "Great!"
      The customer service was good. I have been using the bankbazaar.com for more than a year. It was useful to check the credit score and If I have any queries and its really helpful. I use the website and its easy to operate. There is no delay in the service. The process was simple and faster.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 16, 2019
    • HDFC Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      HDFC Bank is doing good on the credit card. The customer support is good and they are responsive as well. There are good offers on the card and the reward points and cash back deals are also very much satisfactory. The statements are clear and sent on time.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 16, 2019
    • IndusInd Bank Credit Card
      "Need to be faster"
      0.5 2.0/5 "Expected more"
      Its really a good experience with Induslnd credit card. I have received the card but unfortunately not get the pin details till now and its almost one month. They need to be more quick in sending the details after the card disbursal. The documents are submitted to the executive.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Bank Bazaar Credit Card
      "Good Online application"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar is very good there is no issue , the person have replied me immediately whenever I have any issues. Online application is very smooth and convenient to apply for any financial products. I got to know the site through promotional call.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2019
    • Citibank Credit Card
      "Nice process"
      0.5 5.0/5 "Blown Away!"
      Citibank is good overall in the credit card services. The customer support and response is good and they send the statements on time. The bank provides good offers like cash back and the reward points are also good. The card is chargeable but depending on the usage it is waived off.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • IndusInd Bank Credit Card
      "Response part should be improved"
      0.5 3.0/5 "Satisfactory"
      I am unable to generate the pin no of Indusind bank card, there is a online option but my old mobile number was updated. I reached the field executive to whom I submitted the paper they guided to download the bank app, then I tried via app to reset the pin no, by giving my new mobile no but it was showing it was not matching with them. Its hard to visit to their branch because its around 6 to 7 km from my place.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2019
    • Standard Chartered Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I am very happy with Standard Chartered Bank for the credit card and there are so many offers. There are a lot of cash back deals for festivals. The reward points are also much which I can redeem online. The customer support and response is fine.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • American Express Credit Card
      "Overall good"
      0.5 4.0/5 "Great!"
      Amex Bank is overall good and the process is smooth and easy. I hold a credit card and the banking process is good. The credit limit is fine and there are no issues while using the card. There are good deals but they can do better. Else there are no hassles.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Bank Bazaar Credit Card
      "Satisfactory"
      0.5 4.0/5 "Great!"
      The process at Bankbazaar is good and there are no issues in the process. The customer services are good as well as they contacted me on time and informed me the necessary details. The website is fine and it is easy to understand and it is informative too.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • YES Bank Credit Card
      "Experience is good"
      0.5 4.0/5 "Great!"
      I have taken a YES Bank credit card and the process is good. The bank has offered me a life time free card. The credit limit is fine as I am not keen on the limit because I have a lot of other cards as well. I look for the benefits. They have rewards and if I earn 500 points, it can be used for the bill payments.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Bank Bazaar Credit Card
      "Good under all one roof"
      0.5 3.5/5 "Pretty good"
      Everything is in a single point of contact. I have been using this website for more than 2 years and i have reach out this website through publicity. The web interface is really fine. I have checked my credit score also already. Totally, i'm glad about the website.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 16, 2019
    • Kotak Credit Card
      "Good card to have"
      0.5 4.0/5 "Great!"
      Only for the movie purpose, i have selected this Kotak PVR Platinum Credit card. I get a free 2 movie tickets every month for that i have to utilize the card for Rs. 10000. I need to pay the annual fee of Rs. 999 and it will not waived. I got a good limit from this card. I have not had any issues from this card.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 16, 2019
    • Bank Bazaar Credit Card
      "Excellent"
      0.5 4.0/5 "Great!"
      I am happy with the customer service and the response was quick. This is the first time, I have applied my credit card. I have known this site through online. There was no delay in the service. I have used the website and accessibility was faster. I have checked the credit score without any hassle.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2019
    • IndusInd Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      It was a good experience. I don't have idea about the interest rate for the credit card. I took a Platinum credit card. The credit limit was sufficient. It is a life time free credit card. I have started using the card and it has an option for flexi pay.I got the card within 6 to 7 days. The document procedure is simple.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2019
    • Bank Bazaar Credit Card
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I am using the services of bankbazaar from last 6 months, they provide best services when compared to others. Customer support was fine with bankbazaar and their response was on time. The website and mobile app of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2019
    • Kotak Credit Card
      "Best card to use"
      0.5 5.0/5 "Blown Away!"
      I am using KMB credit card from last 4-5 years, the credit card services are good when compared to other credit cards. I did not find much offers on this credit card but the payment options are easy in this card. Credit limit is fine in KMB credit card.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2019
    • HDFC Bank Credit Card
      "Best card to use"
      0.5 5.0/5 "Blown Away!"
      I have a credit card with HDFC bank from last 3 years, there was no annual fee charged for this credit card. Reward points are very good in this credit card and it is useful. I am happy with the credit limit provided by HDFC bank credit card.
      Was this review helpful? 1
      , mumbai
      Reviewed on Feb 16, 2019
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