Cash advance is a facility that is provided by most banks in India. Using this, a credit cardholder can withdraw cash up to a certain limit over the counter at a bank or through an ATM. SBI also provides this service to its customers who possess a credit card that is offered by the bank. Almost all the credit cards offered by SBI come equipped with this facility and can be used to withdraw cash from an ATM. However, the amount of cash that can be withdrawn vary from card to card and so do the charges levied on availing this facility.
Let us take a detailed look at this facility, the benefits that come along with it as well as the charges it attracts.
Cash withdrawal or cash advance limit is the amount of cash the cardholder can withdraw using a particular credit card. Mostly denoted in terms of percentage, it is the part of the total available credit limit on the card in question.
Credit Card Cash Withdrawal Bankwise
For example, if the credit limit of a particular card is Rs.2 lakh, the cash advance limit on it would vary between 20% and 80% of the same. If the cash limit is 20%, the cardholder can withdraw Rs.40,000 as cash by using their credit card. Similarly, if the cash limit is 80%, the cardholder will be allowed to withdraw Rs.1,60,000 using the credit card. SBI typically offers a cash advance limit of 80% on most of its credit cards.
SBI, like all other banks, charges a cash withdrawal fee. This is a transaction fee that the cardholder needs to pay each time they withdraw cash using their credit card. This fee will be added to their credit card bill in the following statement.
SBI charges a cash advance fee of 2.5% of the amount withdrawn or Rs.300 (whichever is higher), whereas for international transactions, a fee worth 3% or Rs.300 (whichever is higher) is levied. For instance, if the cardholder withdraws Rs.1000 using their SBI credit card, they will have to pay Rs.300 as the cash advance fee in the next billing cycle. However, if they withdraw Rs.15,000 using their SBI credit card through an ATM, they will have to pay Rs.375 as the cash advance fee in the next billing cycle. However, SBI holds the right to change the cash advance fee any time.
In addition to this, cash advances also attract a finance charge from the date the amount is withdrawn using the credit card till it is repaid in full.
Cardholders need to pay an interest on availing the facility of cash advance on any credit card offered by SBI. Interest on cash advance or finance charges are levied on a monthly rate from the day cash is withdrawn using the credit card till the amount is repaid in full. Under SBI, each credit card has a different rate of interest ranging from 2.25% per month to 3.35%. Applicants can check the same before applying for an SBI credit card.
Listed below are the finance charges of a few SBI credit cards:
|SBI credit card variant||Rate of finance charge or interest on cash advance|
|Monthly Rate||Annual Rate|
|SBI Card Elite Advantage, SBI Card Unnati||2.25%||30%|
|SBI Card Elite, SBI Card Prime, SBI Prime Advantage, SimplyCLICK SBI card, SimplySAVE SBI Card, Central SBI Select+ Card, Central SBI Select Card, STYLEUP Contactless Card, BPCL SBI Card||3.35%||40.2%|
Cardholders can withdraw at any of the ATMs, and not specifically from SBI ATMs. The procedure to avail cash advance from ATMs using a credit card is similar to that of using a debit card.
Listed below are steps that the cardholder needs to follow:
Listed below are the fees and charges levied on the cash withdrawal feature of SBI credit cards:
|Description of charges||Percentage of the charge|
|Cash advance fee||2.5% of the amount withdrawn or Rs.300 (whichever is higher)|
|Minimum repayment amount||5% of the minimum outstanding balance|
|Cash advance limit||80% of the total credit limit available|
|Finance charges on revolving credit||
Like every other feature of a credit card, the cash advance facility also comes with a bunch of pros and cons. Let us take a detailed look at the advantages and disadvantages of withdrawing cash using an SBI credit card:
Yes, you can withdraw cash using an SBI credit card form an ATM of any other bank.
Yes, you can only withdraw 80% of your credit limit.
No, you can’t earn any reward points on using the cash advance facility.
The amount of cash withdrawn will reflect on your following billing cycle.
Yes, your cash advance limit will increase if you stretch the credit limit on your card.
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