Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
HDFC Credit Card cash withdrawal or cash advance is one of the features available on most of the HDFC Credit Cards. The facility allows the cardholders to use their credit cards to withdraw cash from an ATM.
The content below discusses about the features, benefits, fees and charges involved and other details about the HDFC cash advance feature.
Credit card cash advance is the technical term used for the cash withdrawal feature available on credit cards. Unlike regular credit card transactions, which involve swiping the card at the point of sale terminal or using it for online transactions, cash advance feature allows you to withdraw liquid cash from the credit card and pay it later, hence the name cash advance.
With regards to HDFC cash advance, just like most other banks, HDFC offers cash withdrawal feature on most of its credit cards. While the amount of cash you can withdraw from each type of the card and finance charges may vary, the rest of the components like the advance fee, credit type, etc., remain same across the cards.
Credit card cash limit or cash advance limit is the amount of cash you can withdraw using a credit card. Typically denoted in percentage, the cash limit is a portion of total credit limit on a credit card but not an addition to the limit. For instance, if your credit card’s total credit limit is Rs.1 lakh, the cash limit would typically be 20% to 40% of it. If the cash limit is 20%, you can use up to Rs.20,000 as liquid cash from your credit card. The remaining Rs.80,000 should be spent for card transactions only.
HDFC typically offers a cash advance limit of 40% on most its credit cards except for corporate credit cards which have a cash withdrawal limit of 30% under individual liability and 40% under corporate liability.
The cash advance or the cash withdrawal feature on credit cards is not free. A transaction fee or a cash advance fee will be charged for every transaction and the same would be added to the bill in the next statement.
HDFC charges a cash advance fee of 2.5% of the withdrawn amount or Rs.500, whichever is higher. For instance, if you have withdrawn Rs.30,000 from your HDFC credit card account, you will be levied a cash advance fee of Rs.750, similarly, if you have withdrawn Rs.5,000 you will be charged Rs.500 as the cash advance fee. However, the cash advance fee is subject to change at the discretion of the bank. Further, the cash advances do attract a finance charge equal to finance charges on the cash withdrawn and will be charged from the date of withdrawal till the payment is paid in full.
Cash withdrawals using credit cards do attract interest or finance charges just like the regular payments made using the card. Finance charge or interest will be levied at a monthly percentage rate from the date of withdrawal till the amount is paid back in full. Each credit card has a different rate of interest ranging from 1.99% per month to 3.49%.
You can check the terms and conditions of your HDFC Credit Card to find out the interest rate specific to your card. For your convenience, we have listed finance charges on a few HDFC Credit Card variants.
| HDFC Credit Card Variant | Finance Charge or Interest Rate | |
|---|---|---|
| Monthly rate | Annual rate | |
| JetPrivilege Diners Club, JetPrivilege Diners Black and JetPrivilege Infinia Credit Cards | 1.99% | 23.88% |
| Jet World, Jet Signature, Regalia, Business Regalia, Doctors Regalia, Regalia First/Business Regalia First and other cards | 3.49% | 41.88% |
| In case of default | 3.5% (Max. interest rate) | 42% |
The interest rates are, however, subject to change depending on the spending on the card, payback and card utilization patterns.
One important thing to know about HDFC cash advances is that there is no interest free period. Interest will be charged from the date of withdrawal till the payment is made in full. The payable finance charges will be added to the cardholder’s account till the amount is paid back in full.
Unlike card transactions, cash withdrawals using HDFC Credit Cards are not eligible for reward points. No matter how much cash you withdraw, you will receive zero reward points for cash advances.
Cash from HDFC Credit Cards can be withdrawn at any of the ATMs, not necessarily from HDFC ATMs. And the procedure to withdraw cash is similar to withdrawing cash using a debit card.
However, before withdrawing the cash make sure you have enough cash limit on your card. If you are not aware of the available cash, find the same in your net banking account linked to your credit card or call HDFC customer care centre.
A summary of all the charges applicable on HDFC cash advance feature is provided below.
| Description of Charges | HDFC 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% on the outstanding or minimum Rs.200 |
| Cash advance limit | 40% of credit limit |
| Finance charges (on revolving credit) | 1.99% - 3.5% per month or 23.88% - 42% p.a. |
Now that we have discussed about the various features available under the HDFC cash advance or cash withdrawal facility, let us look at the advantages and disadvantages of using the facility.
Yes, the credit card cash withdrawal facility can be availed at any bank ATM.
No, the cash advance fee and other finance charges will reflect in your next billing statement.
Cash limit is a percentage of credit limit. When you withdraw cash using your HDFC credit card, it will get debited from your available cash limit on the card affecting the total credit limit.
You can apply for a cash limit enhancement on your HDFC credit card only after using it for 6-12 months. However, increasing the limit is completely at discretion of the bank. To check the eligibility of your card for limit enhancement, you can call HDFC customer care.
If your HDFC credit card has a net banking account, you can check your total cash limit and available cash limit on the card by logging in to your account either on online website or HDFC mobile app. Alternatively, you can also call HDFC customer care, provide your credit card details and check your cash limit.
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