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You are not alone if you have ever wondered, can I withdraw money via my credit card? Credit card cash withdrawal is a facility that allows you to use your credit card at an ATM to get cash. While not all credit cards offer it, you can utilise this feature across popular credit cards of top issuers.
With instant access to money, credit card cash withdrawal allows you to meet your emergency needs without any hassles. However, remember that this cash advance feature is only available to a certain limit. This is generally up to 40% of your total or available credit limit.
Additionally, credit card issuers levy credit card cash withdrawal charges whenever you avail this service. The charges and withdrawal limit both vary depending on the issuer’s policy regarding credit card charges.
You can see these charges and other fees in the terms and conditions document of your credit card. To know more about such credit card cash withdrawal charges and what this facility is all about, read on.
The total credit limit you have refers to the maximum amount you can use on your credit card. Credit card cash withdrawal limit is the amount you can withdraw from an automatic teller machine (ATM).
In simple terms, the cash withdrawal limit is a subset of your total credit card limit. For example, say your credit card limit is ₹90,000 and the issuer has a withdrawal limit of 20%. In this case, you can withdraw up to ₹18,000 with your credit card.
The credit card cash withdrawal limit varies depending on a number of factors, including your credit card issuer and credit card type. Since the cash withdrawal limit is a part of your total credit limit, drawing cash will reduce your total credit limit as well as the cash limit.
Both the limits are restored when you completely repay the withdrawn cash as well as your other credit card dues.
The credit limit is the maximum amount that you can borrow using a credit card. The cash advance limit, on the other hand, is the maximum amount that you can withdraw as cash from an ATM using your credit card.
The cash advance limit is merely a sub-limit and is a part of the total credit limit. Generally, most credit cards come with a cash advance limit of anywhere from 20% to 40% of the total credit limit. However, there are a few special credit cards that allow you to even withdraw the entire credit limit as cash.
Here’s an example to help you better understand these two limits. Say that you have a credit card with a total credit limit of ₹1 Lakh. Now, according to the terms of your card, only 40% of the total credit limit is available for cash withdrawals. This means that you can use your credit card to withdraw cash from an ATM only to the tune of ₹40,000 (40% of ₹1 Lakh). The remaining ₹60,000 will be unavailable for withdrawal. However, you can continue to use it to pay for products and services online or offline.
Apart from understanding the withdrawal limit, knowing the credit card cash withdrawal charges is important. These charges add to your total cost of availing the facility. So, keeping them in mind enables you to make an informed decision.
Here are some of the main charges that you should be aware of:
When you make a withdrawal through a non-issuer ATM, the issuer will levy this charge. The amount varies for each issuer and is mentioned in your billing statement.
This is a fee that issuers levy whenever you make a credit card cash withdrawal. The amount is generally a percent of the cash you withdraw and varies for each issuer. It also differs depending on your credit card and can go up to 3%.
Additionally, the fee is subject to a minimum cap, which can be up to ₹500. This means that if you withdraw ₹10,000, the advance fee would have been ₹300. But if the minimum cap is ₹500, you will be charged ₹500 and not ₹300.
Also keep in mind that the fee is subject to the same interest rate as that on the withdrawn amount.
Since this facility is similar to using your credit card to spend money, it also attracts finance charges or interest, apart from the cash advance fee. Varying for each issuer, the interest is levied on the amount withdrawn and will reflect in your credit card statement.
Usually, it ranges from 2.5% to 4% per month and is communicated at the time of credit card issuance. However, you should check the interest rate before making a credit card cash withdrawal as it is subject to change.
Given below is an overview of the credit card cash withdrawal interest rate levied by top issuers.
Credit Card Issuer
Up to 3.99% per month, exclusive of GST
Up to 3.67% per month
3.60% per month
Up to 3.50% per month
Disclaimer: The interest rate is subject to change at the issuer’s discretion.
If you are wondering how to withdraw money from a credit card, rest assured that the process is easy. A credit card cash withdrawal follows the same process as using a debit card. Just follow these steps:
Visit the nearest ATM, preferably your issuer’s ATM
Insert the credit card into the slot
Enter your credit card PIN
Choose the option for cash withdrawal
Enter the amount you want
Collect the cash and the receipt
It is not the credit card cash withdrawal but the outstanding amount or default in repayment that affects your credit score. Regardless of how big or small the amount is, not repaying the withdrawn cash can decrease your credit score.
Additionally, when you don’t repay your credit card dues, they attract charges and penalties. Generally, credit card cash withdrawal charges for late payment are high and having an outstanding amount for a long period can further increase your total dues.
The higher your outstanding amount, the more severe may be the impact on your credit card. So, make sure that you repay your credit card dues, including cash withdrawal, on time.
If you find that you may not be able to make the complete payment, try and pay the minimum amount to avoid any significant negative impact on your creditworthiness.
Listed below are some advantages and disadvantages of credit card cash withdrawal that you should be aware of.
Instant Cash: By opting for credit card cash withdrawal, you can get access to the funds you need in a matter of minutes. Simply visit an ATM and carry out the request. Moreover, some issuers levy no charges if the withdrawal is done through the issuer’s ATM.
Easy and Quick Access: Not only is the process of withdrawing cash with a credit card simple, but it is also hassle free. Although it is a form of credit, it does not require any additional documentation or application. All you need is a credit card and you are good to go.
Availability of Limit Enhancement: Credit card issuers generally increase or upgrade the features and benefits of your card if you make timely repayment. By using your card responsibly and regularly, you can get an upgrade in the credit card cash withdrawal facility too.
Fees and Charges: Each time you make use of the credit card cash withdrawal facility, a minimal fee is charged by the bank. This adds to the credit card charges you pay.
High Interest Rates with No Interest-Free Period: There is also an interest rate levied on cash withdrawals. This is generally high and levied from the day you withdraw the money until you repay it. This also means that there is no interest-free period that is generally available on other transactions.
No Reward Points: Generally, credit card cash withdrawals are not eligible for any reward points or cashback no matter how high the amount.
The cash advance facility can be very beneficial for credit card holders. Here’s an overview of a few advantages that you get to enjoy.
The cash advance facility can be very useful during emergencies. Since ATMs operate on a 24/7 basis and can be found almost everywhere, you have instant access to cash at all times.
With loans and other credit facilities, you’re generally required to submit extensive documentation and wait for approvals which may take a few days. With the credit card cash advance feature, you don’t have to do any of that. You can simply head to the nearest ATM and use your credit card to withdraw cash instantly.
With credit card cash advances, you can withdraw just the amount you need. Also, there’s no limit on the number of withdrawals you can make. This gives you the freedom to get cash as and when you need it. With other forms of credit, however, this may not be possible.
That’s not all. As you continue to use your card and repay your obligations diligently on time, your credit card issuer will provide you with the option to enhance your credit limit. When you opt for it, your total credit limit will get enhanced instantly, which will also end up increasing your cash advance limit.
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No. Credit card cash withdrawal is a facility you can find on select cards only. It is mentioned in the welcome kit if your card application is approved. You can also go through the features of the card to understand whether this facility is available.
If you withdraw cash from your credit card, the available cash limit and total credit limit reduces. Further, you will be charged a fee for availing the facility.
Sometimes. Your bank will usually charge a credit card cash withdrawal fee every time you avail the facility.
Yes. You can use credit cards that offer the feature at an ATM to withdraw cash.
You can check your credit card cash withdrawal limit on your billing statement or by logging in to your account. You can even contact your issuer’s customer support for the same.
Any repayment you make on your card is directed towards cash advances when you have no outstanding balance in other forms of transactions. As such, you will first have to repay the other transactions.
Credit card cash withdrawal charges are levied from the day of the transaction. So, clear your credit card cash advance dues at the earliest.
Yes, the issuer will levy a number of credit card charges when you avail the withdrawal facility. Some of these include the ATM fee, cash advance fee and finance charges.
You should avail the facility only when you need immediate access to funds because credit card cash withdrawal charges are often high and can result in a higher debt burden.
The credit card cash withdrawal charges vary for each issuer and can go up to 3% of the amount withdrawn, subject to a minimum amount of up to ₹500.
Credit card cash withdrawal charges are subject to change over time. However, fees of top credit card issuers normally go up to 2.5% of the amount you withdraw or ₹500, which is higher.