ICICI Bank offers cash advance feature on most of its credit cards. ICICI credit card holders can make use of the feature to withdraw cash using their credit cards. It helps them in emergency and also provides a window to pay back along with interest. It acts as an instant loan which does not require any documentation or approval from the bank. However, a few cardholders are still not clear about the terms and conditions attached to ICICI cash advance, the charges levied, the interest charged, etc., that might possibly prevent them from using the feature. To all such individuals, here is a guide that covers most of the topics you need to know about ICICI credit card cash advance facility.
To begin with, let’s see what exactly is the cash advance feature offered by ICICI Bank or any other bank for that matter. Cash advance is a technical name for cash withdrawal facility available on a credit card. While a credit card is typically used to conduct offline and online card transactions, the cash advance feature allows the cardholders to withdraw cash from ATMs.
Credit Card Cash Withdrawal Bankwise
ICICI cash advance feature is available on most of the ICICI Bank Credit Cards with almost similar fees and charges. However, the finance charges and other fees may vary from one card variant to another. Nevertheless, the fee and charges are subject to change at any point of time at the discretion of the bank.
Credit card cash limit or card advance limit is the amount of cash available for withdrawal on a particular credit card. It is typical a percentage of total credit limit of the credit card. Cardholders can withdraw cash using the credit card within the provided limit.
ICICI Banks sets different cash limits for different credit cards. The cash limit on a particular credit card will be communicated at the time of card delivery. Further, on select ICICI credit cards, the cash limit will be zero for the initial 180 days after card issuance. Once the 180-day period is completed, the bank will make the cash advance facility available on the card.
Credit card cash advance fee is the amount levied on every credit card cash withdrawal. Every time you use your credit card to withdraw cash, you will have to pay certain fee, which will be added to your next month’s billing statement.
ICICI Bank charges a cash advance fee of 2.5% of the withdrawn amount or Rs.300, whichever is higher, for most of the cards. The cash advance fee also attracts interest of 2.95% per month or 41.75% per annum from the date of withdrawal till the amount is paid back in full. The advance fee may also vary for withdrawals done at ICICI ATMs to non-ICICI ATMs, which typically attract more fee.
Just like credit card transactions at point of sale terminals and online portals, cash withdrawals are also eligible for finance charges.
The charges will be levied at a monthly percentage rate from the date of withdrawal till the amount is paid back in full. The interest will be debited from the cardholder’s account till the payment is completely paid. ICICI typically charges rate of interest ranging from 2.49% to 3.5% per month depending on the credit card type. Cardholders can check the terms and conditions of their card to know card specific finance charges.
Listed below are Finance Charges on a few ICICI Credit Card Variants.
|ICICI Credit Card Variant||Finance Charge or Interest Rate|
|Monthly Rate||Annual Rate|
|Instant Platinum, Instant Gold and Fixed Deposit Instant Credit Cards||2.49%||29.88 %|
|All other ICICI credit card except the above listed ones||3.40%||40.80 %|
|Jet Airways ICICI Bank Credit Cards||3.50%||42%|
|In case of default||3.5% (Max. interest rate)||42%|
The bank at its sole discretion have the rights to change the interest rates at any point of time for all the credit cards are for specific cards based on the spending pattern, payback and card utilization on the credit card.
An important aspect about cash advances is that there is no interest free period. The interest will be levied from the date of cash withdrawal till the amount is paid back completely.
Withdrawing cash using an ICICI Credit Card is almost similar to withdrawing cash using a debit card. All you need to do is visit any of ICICI 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 ICICI cash advance facility is provided below.
|Description of Charges||ICICI Credit Card Cash Advance|
|Interest Free Period||NIL|
|Cash advance fee||2.5% of cash withdrawn or Rs.300 (whichever is higher)|
|Minimum repayment amount||5% of outstanding amount or minimum Rs.200|
|Cash advance limit||Communicated at the time of card delivery|
|Finance charges (on revolving credit)||2.49% - 3.5% per month|
Let us look at the advantages and disadvantages of using ICICI credit card cash advance facility.
You can withdraw cash from any of the ICICI bank ATMs or other bank ATMs. However, cash withdrawn from other bank ATMs may attract more advance fee than ICICI ATMs.
The cash advance fee and finance charges will reflect in your next billing statement.
In order to apply for cash limit enhancement on your credit card, you need to use your ICICI Credit Card at least for 12-18 months. Once you complete the period, you can call ICICI customer care to check the eligibility of your card for cash limit enhancement. You can also apply for it using your net banking account provided you register your card in the account.
You can either call ICICI customer care or check your ICICI internet banking account to find the total cash limit and available cash limit on the card.
The reward points programme offered by ICICI 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 ICICI Credit Card.
Almost most banks in India allow you to withdraw around 20% - 40% of your total credit limit. For example, if your total limit on the card is Rs.1 lakh, then you can ideally withdraw up to Rs.20,000 to Rs.40,000.
Although you can withdraw cash using a credit card, you should note that the cost will be high. For all cash withdrawals, you will be charged a fee of around 2.5%.
When one withdraws cash using a credit card, the information and details are recorded on the credit file. This is available to all lenders. When thy see a credit card cash withdrawal transaction on the report, they may assume that you do not have any money left in your bank and this is why you are depending on your credit card.
Yes, apart from offline and online transactions, credit cards can be used for withdrawing cash from the ATM. You can use the ICICI credit card for withdrawing cash from an ICICI ATM and also any other bank ATM.
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