Banks and financial institutions offer various types of credit cards. Customers can avail of the cash advance feature to withdraw cash from their credit cards for immediate cash needs. Credit card cash withdrawal charges are applicable from the day of withdrawal until the payment. It is applicable on each withdrawal.
See also: How to transfer money from credit card to bank account?
What is credit card cash withdrawal?
Credit card cash withdrawal allows customers to withdraw cash from an ATM using a credit card. However, this is an expensive method as it attracts charges applicable from the date of withdrawal until the payment. The cash advance fee may vary between 2.5-3% of the transaction amount, subject to a minimum fee of Rs 250-500.
Interest on credit card cash withdrawal
Interest on credit card cash withdrawal is levied on a monthly percentage rate of 2.5-3.5%. The charges get accrued from the day of withdrawal. There is no interest-free period for cash withdrawal from credit cards, unlike regular transactions.
Credit card cash withdrawal charges in different banks
| Bank | Cash withdrawal charges | Interest charged on credit card cash withdrawal |
| HDFC Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 500 | 1.99-3.5% per month |
| SBI Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 300 | Up to 3.35% per month |
| Axis Bank Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 250 | Up to 3.5% per month |
| ICICI Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 300 | 2.49-3.6% per month |
| Citibank Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 500 | 3.1-3.75% per month |
| American Express Credit Card | 3.5% of the amount withdrawn; a minimum of Rs 250 | No interest rate |
| RBL Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 500 | Up to 3.99% per month |
| Kotak Mahindra Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 300 | 2.49-3.5% per month |
| Standard Chartered Credit Card | 3% of the amount withdrawn; a minimum of Rs 300 | 3% per month |
| Yes Bank Credit Card | 2.5% of the amount withdrawn; a minimum of Rs 300 | Up to 3% per month |
Credit card ATM withdrawal charges
Credit card holders are allowed five free ATM transactions per month. However, this may differ based on the location. After the limit is reached, credit card cash withdrawal would attract ATM maintenance or interchange charges.
In August 2021, the Reserve Bank of India (RBI) increased the fee from Rs 15 to Rs 17 per cash withdrawal. For non-cash transactions, the fee was hiked from Rs 5 to Rs 6. The amounts are exclusive of taxes.
Cash withdrawal charges: Impact on credit score
Cash withdrawal using credit cards has no direct impact on an individual’s credit score as it is not reported separately to credit rating agencies. Only the entire outstanding amount along with defaults is reported.
However, the credit score may be impacted if a person fails to pay the minimum amount due on their credit card. Hence, it is essential to keep track of all the outstanding dues and clear the payment to maintain the credit score.
While you can withdraw cash with credit cards, most of your payments can be done online these days, eliminating the need for cash. You can even pay rent online with credit card.
FAQs
Is the cash withdrawal facility available on all credit cards?
The cash withdrawal facility is available only on select cards.
Should you get approval for withdrawing cash from a credit card?
No approval is required from your bank if your credit card has a cash withdrawal facility.
Where is the cash withdrawal transaction specified for the credit card?
The cash withdrawal transaction, along with additional fees, is mentioned in the credit card statement.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
