Credit Card Cash Withdrawal Charges

Credit Card Cash Withdrawal

Credit card cash withdrawal is a facility through which you can withdraw cash from an ATM using your credit card. You don’t need any additional bank approvals for credit card cash withdrawal. You can withdraw cash from your credit card up to the maximum permissible limit. This limit is called credit card cash withdrawal limit and it may vary from bank to bank. Do note that not all banks offer the facility for credit card cash advance on their cards.

What are the Charges Associated With Credit Card Cash Withdrawal

A percentage of the amount withdrawn and is called credit card cash advance fee. Generally, banks charge about 2.5% to 3% of the cash withdrawn or a minimum of ₹300 to ₹500 as credit card cash advance fee. Therefore, it is wise to avail the facility only during emergencies. Over and above this, most banks also charge interest on the withdrawn amount until the dues are cleared. Hence, it is advisable to check with your credit card issuer before you avail the credit card cash advance facility.

Credit Card Cash Advance Fee of Top Credit Cards

Depending on the bank and the type of card issued, the credit card cash advance fees on top cards generally vary between a range of 2.5%-3.4% of the amount withdrawn (min.₹500) + taxes.

Difference Between Credit Card Cash Advance Limit and Credit Limit

The maximum amount that you can spend on the credit card is known as the credit card limit. The credit card cash withdrawal limit, on the other hand, is the maximum cash you can withdraw from the card. This limit is also known as the credit card cash advance limit and forms a part of the total credit limit on the card.

While the CC cash withdrawal limit varies from bank to bank, it usually ranges between 20% to 40% of the card’s total credit limit. Do note that the available credit card ATM withdrawal limit reduces after each cash withdrawal. The limit is restored when the withdrawn amount is repaid in full.

Interest Charges on Credit Card Cash Withdrawal

Credit card withdrawal charges also include finance charges, apart from the cash advance fee. The finance charge is levied on the amount withdrawn and will reflect in your credit card statement.

The credit card interest rate on cash withdrawal from a credit card varies from bank to bank and the card type. Usually, it ranges from 2.5% to 4% per month and is communicated at the time of credit card issuance. However, before attempting cash withdrawal from your credit card, you should check the cash withdrawal interest rate as it is dynamic and subject to change at the bank’s discretion.

Interest Levied on Credit Card Cash Advance by Top Banks

The interest rates on cash advance for top bank credit card such as Citibank Credit Card, Axis Bank Credit Card, Bajaj Finserv RBL Bank Credit Card, SBI Credit Card and ICICI Credit Card are generally within a range of 35%-40% annually.

How To Withdraw Money Using a Credit Card

The process of withdrawing money from a credit card is very easy and similar to cash withdrawal using a debit card. You can visit your nearest ATM and withdraw the required amount in a few easy steps given below.

• Step 1: Insert the credit card into the card slot at the ATM.

• Step 2: Enter the credit card PIN.

• Step 3: Enter the amount you wish to withdraw from your card.

• Step 4: Click ‘Submit’.

You will receive the cash immediately.