Credit Card Cash Withdrawal Charges

my offers

How about checking some pre-approved offers you might be eligible for?

my offers

How about checking some pre-approved offers you might be eligible for?

  • Mobile No.
  • Date of birth

You have a pre approved offer

  • Sum Assured
    Persons Covered
  • Rate

Currently, we do not have a personalized offer for you but don’t be disheartened. Check out our oven fresh deals of the day here!

We have 02 personalised offers for you

Currently, we do not have a personalized offer for you but don’t be disheartened. Check out our oven fresh deals of the day here!

my offers

✓ Fast Processing ✓ Great Discounts & Offers ✓ Easy EMI Facility | Apply for Credit Card now!

Credit Card Cash Withdrawal

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. 

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

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. 

What is the Difference Between a Credit Card Cash Advance Limit and a Credit Limit? 

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. 

Charges Associated With Credit Card Cash Withdrawal

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:

  • Credit Card ATM Withdrawal Charges:

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. 

  • Credit Card Cash Advance Fee:

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. 

  • Interest on Cash Withdrawal:

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.

Interest Levied on Credit Card Cash Advance by Some of the Credit Card Providers 

Given below is an overview of the credit card cash withdrawal interest rate levied by top issuers. 

Credit Card Issuer

Interest rate

Bajaj Finserv RBL Bank Credit Card

Up to 3.99% per month, exclusive of GST

ICICI Credit Card

Up to 3.67% per month

Axis Bank Credit Card

3.60% per month

SBI Credit Card

Up to 3.50% per month

Disclaimer: The interest rate is subject to change at the issuer’s discretion.

How to Withdraw Money Via a Credit Card

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 

  • Click ‘Submit’

  • Collect the cash and the receipt

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

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. 

Advantages & Disadvantages of Credit Card Cash Withdrawal

Listed below are some advantages and disadvantages of credit card cash withdrawal that you should be aware of.

1. Advantages

  • 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. 

2. Disadvantages

  • 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.

What are the Benefits of the Credit Card Cash Advance Feature?

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. 

  • Instant Access to Cash

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. 

  • No Need For Any Approvals or Documentation 

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. 

  • Flexibility 

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. 


DISCLAIMER: The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. The information including interest rates or fees and charges with regard to any credit card, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, trade names, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.



  • ✔️Is credit card cash withdrawal available on all cards?

    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.

  • ✔️What happens if I withdraw cash from my credit card?

    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. 

  • ✔️Can I withdraw money via my credit card without charges?

    Sometimes. Your bank will usually charge a credit card cash withdrawal fee every time you avail the facility.

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

    Yes. You can use credit cards that offer the feature at an ATM to withdraw cash.

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

    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.

  • ✔️How to make a credit card payment specifically towards a cash advance?

    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.

  • ✔️When should withdrawn cash be repaid and how?

    Credit card cash withdrawal charges are levied from the day of the transaction. So, clear your credit card cash advance dues at the earliest.

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

    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.

  • ✔️Is it a good idea to withdraw cash from a credit card?

    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. 


  • ✔️What are the credit card charges for cash withdrawal?

    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.

  • ✔️What are top credit cards’ cash withdrawal fees?

    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.