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 It’s instant and can be withdrawn from any bank ATM located in and outside India.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

    • HDFC Bank Credit Card
      "BEST"
      0.5 5.0/5 "Blown Away!"
      I have used the card for 3 years with HDFC BANK where the card has the 92K of credit limit it was good also it was a life time free card to use. I have closed the card, there are good offers available as loans provided with the card. The overall service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 19, 2019
    • IndusInd Bank
      Bank Bazaar Credit Card
      "BEST"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i am using for the very first time and i came to know through the advertisement, i am using through the mobile application it is easy to use and it is simple to use. The customer support is good as they are helpful by explaining the details of the card.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 19, 2019
    • IndusInd Bank Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I got an offer with the card so i have taken with the INDUSIND BANK LTD. The card has the good credit limit also it is a life time free card. The documentation process was simple and done through the offline. There are offers of cash backs, rewards points.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 19, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I am using the STATE BANK OF INDIA CREDIT CARD for the last ten years where the services has been good, there is some annual charges with the card as well. I am satisfied with the credit limit with the card and there has been some good offers which comes with this card. Overall it is good .
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2019
    • ICICI Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      It has been few months since i am using the ICICI BANK CREDIT CARD and there is a good credit limit with this card. It does not have any annual charges and i use the card for online and offline shopping. There is some cash back offers which comes with this card as well. Overall it is good card .
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I had been using the services of BANK BAZAAR for a very long time where it has been a great experience i had with them. I used to check my credit score through them and also used to check about credit cards. I had applied for a credit card through them recently and their customer support response has been quick.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2019
    • IndusInd Bank Credit Card
      "Average card"
      0.5 3.0/5 "Satisfactory"
      I chose the INDUISND BANK credit CARD . I am happy about the features. The limit they offered is also good I never had any issues with their services. I'll have to use it more to get a clear idea about the benefits. I have not interact with customer service till date . The card is chargeable it is not life time free card . Net banking is very difficult it is not so user friendly .
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2019
    • SBI Cards Credit Card
      "NOT SATISFIED"
      0.5 1.0/5 "Really Bad"
      I am facing issue with the statement provided for the card with SBI CARD so i have closed the card apart from that the annual fee is higher. I have used the card for 3 years, i have not received the NOC. The card has the limit of 10K and latter 35K latter i got no hike.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i am using for the very first time and i came to know through the message and i am using through the application it is easy to apply the credit card also the customer support is good with the channel and with good follow up as well.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2019
    • IndusInd Bank Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      There are benefits available so i have taken the card with INDUSIND BANK LTD. The credit limit is good also offers is for fuel surge charges waver off. The documentation process was done through the offline, i got the card within 20 days. The application is easy to use.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "Better"
      0.5 3.0/5 "Satisfactory"
      Bankbazaar.com is a good site but I do not like too much of response from them. They should not keep calling the customer. Earlier I have taken a credit card via Bank Bazaar and the process went good. I am using the website which is easy to operate.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 19, 2019
    • IndusInd Bank Credit Card
      "Better"
      0.5 4.0/5 "Great!"
      I have applied for a Indusind credit card through online channel. I did not find any difficulty in getting the credit card. The process was simple and it was delivered on time. The credit limit is good and enough. It is a life time free. The documentation process was online.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through Online only .I have tried checking credit score it is very useful ,This portal is very useful to search all the required information related to all financial products,I have not faced any difficulties so far on using this portal ,Everything is good on this website .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 19, 2019
    • Citibank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      I am using the CITI bank credit card for last 1.5 years and I hold a rewards card. For each and every purchase, I get rewards points and I have already converted that into cash. If particular points is getting accumulated, I can convert into cash. Their customer care service is really fine and its a recommendable card to use.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "Awesome website"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar I have use this for credit score, getting some credit cards and I have taken the personal loan also. Their service is very good. Last 6 months back, I have started using the bankbazaar website and I come to know about this through the mail which I have received from the gmail one day I have gone through that in that they have given me a option to check my credit score after the eligible cards based on profile was available. People does not know the eligible product, they can must visit.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2019
    • IndusInd Bank Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I have received the card but I havenâ??t use it. Around 20 times people have called me for the same things at the verification purpose. This is a very bad experience. Customer care response is very good. I would like to take the card, thats the reason I took this card. There is no charges on this card. I expected the credit limit of more than that what I have received now.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2019
    • HDFC Bank Credit Card
      "Better card"
      0.5 5.0/5 "Blown Away!"
      I use HDFC Moneyback credit card for last 4 years. The credit limit is sufficient for me. They are charging me annually 1200 rupees. I use this card for multi purpose. I get 5% or 10% and sometimes 20% discount on HDFC card online purchase.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "Best portal"
      0.5 5.0/5 "Blown Away!"
      I am using Bankbazaar.com for last 2 years. It is easy to apply any financial products through online. The mobile app is simple to use I have taken a loan also and used to check my credit score. There is no delay in the service. The response was good.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jul 19, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through Online.Everything was good and the processing time will be very smooth .This portal is doing a very good service and can get update about credit score since it is a free service can check whenever required .This website is well known to each and everyone as well .
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 19, 2019
    • IndusInd Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken a Indusind Visa Platinum credit card. I have no idea about the charges. The credit limit is okay as of now and hoping for the good one. It is a life time free credit card. Its been one month. The documentation process was doorstep.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jul 19, 2019
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