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Learn about cash withdrawal charges with Kotak Mahindra Bank credit card, including applicable fees, interest rates, withdrawal limits, and tips to manage these costs effectively.
Cash withdrawals using a Kotak Mahindra Bank credit card are treated as cash advances, which come with specific charges and interest implications. Unlike regular purchases, cash advances incur a withdrawal fee, immediate interest from the transaction date, and applicable taxes. These charges vary based on the card variant and the amount withdrawn. Understanding these fees helps cardholders make informed decisions and avoid unnecessary costs when accessing cash through their credit card.
A Kotak Mahindra Bank credit card allows you to withdraw cash from an ATM. This is known as a cash advance, and it lets you access cash instead of making a purchase. This facility can be used at Kotak Mahindra Bank ATMs as well as other domestic and international ATMs that support credit card withdrawals.
Unlike regular credit card transactions, a cash withdrawal does not enjoy an interest-free period. The withdrawn amount is added to the outstanding balance immediately and reduces the available credit limit. Cash advances are generally meant for short-term or emergency needs, as they are more expensive than standard card purchases due to higher charges and instant interest applicability.
Kotak Mahindra Bank credit card cash withdrawal charges typically include multiple components that together increase the overall cost of the transaction.
The primary charge is the cash advance fee, which is usually calculated as a percentage of the withdrawn amount, subject to a minimum fee per transaction. In addition, finance charges or interest start accruing from the date of withdrawal until the amount is fully repaid. Goods and Services Tax is applicable on the cash withdrawal fee and interest charges as per prevailing rates.
These Kotak Mahindra Bank credit card cash withdrawal charges can differ by card category, with premium cards sometimes offering lower fees or partial waivers compared to entry-level cards.
When you use your Kotak Mahindra Bank credit card to withdraw cash from an ATM, the bank imposes a cash advance fee on the withdrawn amount. This fee is usually a percentage of the amount you take out , which is around 2.5% of the cash withdrawn. This fee is subject to a minimum charge (commonly ₹500) per transaction. For some card types, a flat fee per ₹10,000 withdrawn may apply depending on the specific product terms.
In addition to the cash advance fee, some Kotak credit card variants may also charge a separate ATM withdrawal processing fee each time you use an ATM. This fee applies whether you withdraw cash at a Kotak Mahindra Bank ATM or any other bank’s ATM. The total cost of a single cash withdrawal transaction therefore includes both the cash advance percentage fee and the ATM processing fee that your card terms specify.
Unlike purchases that enjoy an interest‑free grace period, finance charges begin immediately on the date you withdraw cash. Kotak Mahindra Bank charges interest on the cash withdrawal amount from the very first day until the amount is repaid in full. The interest rate depends on your card variant and is usually expressed as a monthly percentage (e.g., around 3.4–3.5% per month), which translates to a high annual rate. This means interest accrues daily, making cash withdrawals one of the most expensive credit card transactions if not repaid quickly.
The interest on a cash advance does not wait until your billing cycle ends, it accrues on a daily basis from the moment you withdraw cash. Every day that the cash advance remains unpaid, interest continues to build on the outstanding amount. Because there is no interest‑free period on cash advances, even paying other parts of your outstanding balance on time won’t stop the interest from accumulating on the cash withdrawal amount until it is cleared entirely.
All fees related to cash withdrawals, including the cash advance fee, any ATM withdrawal fees, and the finance charges, are subject to Goods and Services Tax (GST). GST is added on top of the base charges and will appear separately in your credit card statement, increasing the overall cost you owe for a cash advance.
When you use your Kotak credit card to withdraw cash, there is usually a predefined cash advance limit set by the bank. This limit is typically a portion of your overall credit limit, and it determines the maximum amount of cash you can take out in a single transaction or within a billing cycle. Exceeding this limit can result in declined transactions or additional penalties as per your card’s terms.
When you use your Kotak Mahindra Bank credit card to withdraw cash from an ATM or take a cash advance, interest begins accruing immediately from the date of the transaction with no interest‑free period. Unlike regular retail purchases, which may have an interest‑free period if you pay your full bill on time, cash withdrawals start accruing interest immediately with no such benefit.
The finance charges applied to cash advances are typically based on a monthly interest rate, which can range from around 2.49% to 3.50% per month depending on your card type, equivalent to roughly 30% to 42% annual percentage rate (APR).
Interest on cash withdrawals is calculated daily on the outstanding balance from the moment the cash is withdrawn until you fully repay it. Because the interest starts right away and continues until the cash advance and associated charges are cleared, the total cost of borrowing via a cash withdrawal can increase significantly the longer you delay repayment.
Withdrawing cash using a Kotak Mahindra Bank credit card follows a standard ATM process:
Insert the credit card into the ATM, select the cash withdrawal option, enter the withdrawal amount, and authenticate the transaction using your credit card PIN.
The withdrawn amount is added to your outstanding balance instantly, your available credit limit is reduced, and interest starts accruing from the same day.
Managing or avoiding cash withdrawal costs can help reduce financial strain:
Debit cards, UPI, or bank transfers usually involve lower or no charges compared to credit card cash advances.
Reserve credit card cash withdrawals only for emergencies due to the high associated costs.
Clearing the cash advance balance as early as possible reduces the total interest payable.
Some premium Kotak Mahindra Bank credit cards may offer lower cash withdrawal fees or reduced interest rates, which can help manage costs.
Kotak Mahindra Bank credit card cash withdrawal charges usually include a cash advance fee, immediate interest from the withdrawal date, and applicable taxes, which vary by card type.
Kotak bank charges interest from the transaction date itself, with no interest-free period for cash withdrawals.
The cash withdrawal limit is typically a portion of the total credit limit and depends on the specific card variant.
Cash withdrawals reduce the available credit limit instantly, as the withdrawn amount is added to the outstanding balance.
ATM cash withdrawals are costlier because they attract cash advance fees, immediate interest, and additional charges that do not apply to regular card purchases.
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