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Credit Card Cash Withdrawal

Credit card cash withdrawal also known as credit card cash advance is a feature offered by certain banks against their credit cards. Using this facility, you can withdraw funds in the form of cash from your credit card. Also, you get access to instant liquid cash without providing any documentation or requiring any approval.

How Does Cash Withdrawal Using Credit Card Work?

The credit card cash advance feature lets you withdraw cash within the card’s cash withdrawal limit. You can withdraw the amount easily by swiping your card at the bank’s ATM. The amount gets deducted from the credit card’s available balance. You are then required to repay the cash you withdrew on your card along with any fees and charges that the bank levies.

How is the Credit Card Cash Withdrawal Limit Different from Credit Limit?

The credit limit on a card is the maximum funds that you can borrow against it. 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 of a part of the total credit limit on the card. While the CC withdrawal limit varies from bank to bank, it usually ranges between 20% to 40% of the card’s total credit limit. The available CC cash advance limit reduces every time you use the card to withdraw cash. The limit is restored when the amount withdrawn is repaid in full.

What is Credit Card Cash Advance Fee?

The credit card cash advance fee is a one-time fee that is charged when you withdraw money from your credit card. The fee is a percentage of the total amount withdrawn, which typically ranges between 2.0% to 3.0%, or a minimum amount between INR 100 to INR 500, depending on the bank. The credit card cash withdrawal charges are mentioned in the next month’s statement.

The credit card money withdrawal charges, in the form of cash advance fee, for some of the top cards are mentioned below-

Credit Card

Credit Card Cash Advance Fee

Citibank Rewards Credit Card

2.5% of the amount withdrawn (min INR 500)

Citibank IndianOil Credit Card

2.5% of the amount withdrawn (min INR 500)

Citibank PremierMiles Credit Card

2.0% of the amount withdrawn (min INR 300)

Axis Bank MY ZONE Credit Card

2.5% of the amount withdrawn (min INR 500)

Axis Bank Neo Credit Card

2.5% of the amount withdrawn (min INR 500)

IndianOil Axis Bank Credit Card

2.5% of the amount withdrawn (min INR 500)

SBI SimplySAVE Credit Card

2.5% of the amount withdrawn (min INR 500)

BPCL SBI Credit Card

2.5% of the amount withdrawn (min INR 500)

SBI Card ELITE

2.5% of the amount withdrawn (min INR 500)

RBL Bank Platinum Choice FYF SuperCard

2.5% + GST of amount withdrawn (min INR 100 + GST)

RBL Bank Platinum Choice SuperCard

2.5% + GST of amount withdrawn (min INR 100 + GST)

RBL Bank World Prime SuperCard

2.5% + GST of amount withdrawn (min INR 100 + GST)

RBL Bank World Plus SuperCard

2.5% + GST of amount withdrawn (min INR 100 + GST)

What are the Interest Charges on Credit Card Cash Withdrawal?

Apart from cash advance fee, credit card ATM withdrawal charges also include finance charges. The finance charge is levied on the amount withdrawn and is reflected in your credit card statement. The credit card interest rate for cash withdrawal varies from bank to bank as well as with the card type. Usually, it ranges between 2.5% to 4% per month and is communicated at the time of issuance of the credit card. However, before attempting cash withdrawal from your credit card, it might be wise to check the cash withdrawal interest rate as it is dynamic and subject to change at the bank’s discretion. The credit card cash withdrawal charges, in the form of interest, for some of the top cards are mentioned below-

Credit Card

Interest Rate on Cash Withdrawal from Credit Card

Axis Bank MY ZONE Credit Card

3.4% per month

Axis Bank Neo Credit Card

3.4% per month

IndianOil Axis Bank Credit Card

3.4% per month

RBL Bank SuperCard

3.99% per month

SBI SimplySAVE Credit Card

3.35% per month

BPCL SBI Credit Card

3.35% per month

SBI Card ELITE

3.35% per month

How to Withdraw Cash Using a Credit Card?

The process of withdrawing cash using a credit card is the same as withdrawing cash from a debit card. You can visit your nearest ATM and withdraw the money required in a few easy steps –

  • Insert the credit card in the card slot of the ATM

  • Enter the credit card PIN

  • Enter the amount you wish to withdraw from your card

  • Click ‘Submit’

What is the Impact of Credit Card Cash Advance on Credit Score?

The amount you withdraw from the credit card as cash is not informed to the credit bureaus and hence doesn’t have a direct effect on your credit score. However, in case while repaying the withdrawn amount, you fail to clear the minimum amount due within the due date, your credit score goes down. It is therefore important to be informed about the outstanding balances and the payment due dates so that your creditworthiness is not negatively affected.

Advantages and Disadvantages of Credit Card Cash Withdrawal

There are several advantages of opting for cash withdrawal through credit card-

  • You get cash from credit card instantly after you apply for a credit card

  • You can withdraw cash using your credit card from the bank’s ATM

  • One of the easiest ways to get cash as it requires no prior approvals or documentation

Despite the advantages, there a few things you should be aware of when opting to withdraw money from credit card-

  • Every time you withdraw credit from your credit card you have to pay the cash advance fee and other charges

  • Cash withdrawal through credit attracts an interest charge which must be paid till the entire amount withdrawn is returned

  • Cash withdrawals do not come with an interest free period

  • No credit card reward points can be earned on cash advances

Frequently Asked Questions

  • ✔️Can we withdraw money from a credit card from an ATM?

    Yes, if your credit card supports the cash withdrawal facility, you can use it to withdraw cash from an ATM.

  • ✔️How do I know the cash limit of my credit card?

    The cash limit on your credit card will be conveyed to you when issuing the card. You can also log in to your net banking account to get an idea about your credit card cash advance limit. Alternatively, you can reach out to an executive by calling on the customer care helpline and inquire about your credit card ATM withdrawal limit.

  • ✔️How to make credit card payments towards cash advance alone?

    If the balance that is outstanding on your credit card includes only the cash advance made, then any payment you make towards your credit card will be used to pay off your cash advance. Hence. If you want to make credit card payments towards cash advance alone, you would need to clear all other dues against your card.

  • ✔️When should withdrawn cash be repaid and how?

    There are interest charges levied for withdrawing money from your credit card. It is therefore wise to clear your credit card outstanding dues at the earliest.

  • ✔️Do I need to pay an additional fee for cash withdrawal using a credit card?

    The credit card cash advance fee is a one-time fee that is charged when you withdraw money from your credit card. Apart from cash advance fee, credit card ATM withdrawal charges may also include finance charges.

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