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Credit card cash advance, otherwise known as credit card cash withdrawal facility allows eligible cardholders to withdraw cash with the help of their credit card. Since credit cards are primarily designed for card purchases, cash withdrawals are an added feature that is offered by card issuers. Different credit cards come with different cash withdrawal limits, fees, and charges. So, it’s best to get in touch with your credit card issuer before making a credit card cash withdrawal. 

 

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

Issuers generally assign a credit card cash withdrawal limit ranging between 20% to 40% of your total credit limit, and you can find this limit mentioned online or in the terms for the card type.

 

A credit card cash withdrawal limit, as you already know, is the maximum amount of cash that you can withdraw using your credit card. A credit limit, on the other hand, refers to the maximum amount of credit that your credit card issuer has offered you on your credit card. 

 

One thing worth noting is that all credit cards come with a credit limit. It’s determined based on a number of factors such as your credit score and history, relationship with the issuer, and credit card type. However, not all credit cards come with a credit card cash withdrawal limit. In case cash withdrawals are a priority for you, then you can apply for a credit card online that offers this facility. 

 

The cash withdrawal limit on most credit cards will be a percentage of the credit limit. This can range anywhere from 20% to 40% of the total credit limit. For example, if your total credit limit is ₹2,00,000, then your cash withdrawal limit can be anywhere between ₹40,000 and ₹80,000. 

Charges Associated With Credit Card Cash Withdrawal

Here are some of the credit card cash withdrawal charges that may be levied by your credit card issuer: 

  • Cash Advance Fee 

A cash advance fee is usually about 2.5% to 3% of the total cash withdrawal amount. It will likely be levied on every cash withdrawal you make. It may also be subject to a minimum amount, ranging from ₹250 to ₹500. This amount will reflect in your credit card statement

  • Finance Charges 

Although finance charges are not common these days, they’re not entirely out of the picture either. This charge will be levied from the date of the withdrawal to the date of the repayment. 

  • Interest 

Credit card withdrawals are subject to interest, which are typically charged on a monthly basis. Interest rates can range anywhere from 1.99% to 3.5% per month, or 23.88% to 42% per annum. Bear in mind that the interest-free period that you enjoy with card transactions are not applicable for cash withdrawals. Interest will start accruing the day you withdraw the cash till the day it’s paid in full. 

  • ATM Fee

As a credit card user, you will likely be allowed up to five free ATM transactions per month. Once you’ve exhausted your free withdrawals, you will be charged an ATM maintenance or interchange fee. Making withdrawals from a non-issuer ATM can also attract additional charges. All applicable fees are transparent and will reflect in your credit card statement. 

  • Late Payment Fee 

In case you do not repay your full withdrawal amount on the due date, late payment charges may be levied. 

Please note that the figures mentioned are only indicative, actual rates and charges may vary depending on your credit card issuer’s policies. 

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

Here’s the interest levied on cash withdrawals by leading credit card 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 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.

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FAQs

Is credit card cash withdrawal available on all cards?

Since the cash withdrawal facility is an added benefit, not all credit cards come with it. Depending on your card issuer’s policies and your eligibility, you may or may not be offered this facility. 

What is the impact of credit card cash advances on credit score?

Simply making a cash withdrawal is unlikely to have an impact on your credit score. However, defaulting on repayments can hurt your credit score.

How to withdraw money with a credit card?

Making a cash withdrawal with your credit card is quite simple. Go to an ATM near you, preferably the card issuer’s ATM. Insert your credit card in the machine, enter in your credit card PIN and the withdrawal amount. Make sure to withdraw your money and collect your card. 

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 goes down. You may also be charged some fees and charges.

Can I withdraw money via my credit card without charges?

It’s unlikely that you can withdraw cash using your credit card without incurring any charges. If that’s something you would like, you can get in touch with your credit card provider to explore viable options. 

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

Yes, you can use credit cards to withdraw cash, provided that your credit card allows for this. 

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

You can check your credit card cash withdrawal limit by logging into your card provider’s website or app. You can even contact your card 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 do not have any outstanding balance. In case you have an outstanding balance from purchases, then your repayment will contribute to that as well. Different credit card issuers may have different policies, so it’s best to get in touch with them to understand your repayment better.

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 to save on interest payments. 

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

Yes, it’s likely that you would have to incur some fees and charges when using your credit card to make a withdrawal. This will typically include finance fees, interest charges, ATM convenience fees, etc. 

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

It can be a good idea if you are in need of some cash urgently. You can withdraw cash immediately without having to furnish any documentation. However, bear in mind that the costs associated with credit card cash withdrawals are quite high. So, it’s best that you exercise caution while making use of this facility and repay as soon as possible to avoid high interest payments.

What are top credit cards’ cash withdrawal fees?

The credit card cash withdrawal charges vary for each issuer and can go up to 3.5% of the amount withdrawn, subject to a minimum amount of up to ₹500.

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