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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.
A percentage of the amount withdrawn and is called credit card cash advance fee. Generally, banks charge about 2.5% to 3% of the cash withdrawn or a minimum of ₹300 to ₹500 as credit card cash advance fee.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 Over and above this, most banks also charge interest on the withdrawn amount until the dues are cleared.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.
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card issued, the credit card cash advance fees on top cards generally vary between a range of 2.5%-3.4% of the amount withdrawn (min.₹500) + taxes.
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 The limit is restored when the withdrawn amount is repaid in full.
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 The finance charge is levied on the amount withdrawn and will reflect in your credit card statement.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.
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.
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.
No. Credit card cash withdrawal is a facility you can find against select cards. It is communicated when you apply for a credit card and in the welcome kit, should your card get approved. You can also go through the features of the card to understand the same.
If you withdraw cash from your credit card, the available cash limit against your card is reduced. You are also required to pay a fee for availing the facility.
No. Your bank will charge you a credit card cash withdrawal fee every time you avail the facility.
Yes. Credit cards that support the cash withdrawal feature can be used at an ATM to withdraw cash.
The cash limit on your credit card will be conveyed to you at the time of card issuance. You can also log in to your netbanking account to get an idea about your credit card cash advance limit. Alternatively, you can reach out to an executive by calling the card issuer’s customer care helpline and inquire about your credit card ATM withdrawal limit.
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.
Interest is levied on withdrawing money from your credit card. It is, therefore, wise to clear your credit card cash advance dues at the earliest to reduce the interest paid on said withdrawal.
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 incur finance/interest charges.
No. Cash withdrawal is an additional feature of the credit card and should be used only during emergencies. The reason is that you must pay credit card cash withdrawal charges along with interest on the withdrawn amount using a credit card.
Generally, banks charge about 2.5% to 3% of the withdrawn amount subject to a minimum amount of ₹300 to ₹500 as credit card cash advance fee.