Credit Card Cash Withdrawal Charges, Limits and Interest Rates
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Credit cards are an innovative financial instrument through which you can transact now and pay later. They also offer rewards and cashback upon spending a milestone amount. While credit cards were traditionally used for transactions, they can now be used to withdraw cash from an ATM, just like debit cards. However, there are a few charges that you must pay to use this feature. In this article, we have covered credit card cash withdrawal charges in detail.
What is Credit Card Cash Withdrawal?
Credit card cash withdrawal, also known as credit card advance, is a feature of credit cards that allows you to withdraw cash using your credit cards at a bank’s ATM. Since credit cards are primarily used as a means of payment, cash withdrawal is an additional feature provided by credit card issuers. Not all credit cards come with this feature. But for the ones that do, charge additional charges and have certain cash withdrawal limits.
How to Withdraw Cash Using a Credit Card?
Withdrawing cash from an ATM using your credit card is similar to withdrawing cash using your debit card. First, you go to the ATM and interest the card. Then, you enter the PIN and the amount you need. The ATM will disburse the cash as per your instruction.
Before you withdraw cash from the ATM, it is important to consider the following.
You can go to any bank’s ATM to withdraw cash using your credit card. However, keep in mind that some banks charge you for using a credit card in a different bank’s ATM.
Be informed of the cash limits on your credit card before you withdraw money. This way, you won’t exceed your limit and also escape the additional fee the banks charge for exceeding the cash limit.
Credit Card Cash Withdrawal Charges
Banks and credit card issuers charge various kinds of fees when you withdraw cash from the ATM using your credit card. Following are the different types of charges and fees banks levy on credit card users for cash withdrawals.
Cash advance fee
It is the fee charged every time you withdraw money from the ATM. The cash advance fee ranges between 2.5% and 3% of the transaction amount, subject to a minimum withdrawal limit of Rs 250 – Rs 500. The fee is reflected in the bill that you will receive at the end of the billing cycle.
Finance charges
Just like how regular credit card transactions attract finance charges, cash withdrawals also have a finance charge. The finance charge is included in the cash advance fee, and it has no interest-free period. So, finance charges are applicable right from the time you withdraw cash to the day you repay it back. If you withdraw multiple times a day, the finance charge is levied on each transaction based on the cash you withdraw.
Interest
Banks also charge interest apart from cash advance fees. This interest usually ranges between 2.5% to 3.5% per month on all cash advances. Interest is charged from the day you withdraw cash till the day you repay it. The interest rates are subject to change at the discretion of the bank. This is because the interest rate is decided based on your card usage, spending frequency, and repayment behaviour.
ATM fee
Banks usually allow you to withdraw cash from other banks’ ATMs only for a maximum of five times a month. In case you withdraw cash more than five times a month from a different bank’s ATM, each transaction will attract an ATM fee. The ATM fee is Rs 17 per withdrawal, and for non-cash transactions, it is Rs 5 – Rs 6. The charges or fees will be reflected in your credit card statement that you will receive at the end of the billing cycle.
Late payment fee
If you do not repay the full amount before the due date, the banks will charge a late payment fee of 15%-30% per annum.
Cash Withdrawal Charges of Different Credit Card Providers
| Bank | Cash Withdrawal Charges | Interest Rates |
| Axis Bank | 2.5% | 52.9% |
| ICICI Bank | 2.5% | 42.0% |
| HDFC Bank | 2.5% | 42.0% |
| SBI | 2.5% | 42.0% |
| Kotak Bank | 2.5% | 42% – 44% |
| IDFC Bank | Rs 199 | 9 – 42% |
| Standard Chartered | 3.0% | 41.9% |
| Yes Bank | 2.5% | 45.6% |
| American Express | 3.5% | 42.0% |
| IndusInd Bank | 2.5% | 46.0% |
| HSBC Bank | 2.5% | 41.9% |
| Bank of Baroda | 2.5% | 18% – 43.2% |
| RBL Bank | 2.5% | 39.6 – 47.8% |
| AU Small Finance Bank | 2.5% | 41.8% |
Last updated as of 11th December 2023.
Difference between Credit Card Cash Advance Limit and Credit Limit
A credit limit is the maximum amount that you can spend on a particular credit card during a month. On the other hand, the cash advance limit is the maximum amount of cash you can withdraw using your credit card during a month. The cash advance limit is always lower than the credit limit. Banks usually keep the cash advance limit at 20%-40% of the total credit limit. For example, if the credit limit on your card is Rs 50,000 per month. The cash limit is between Rs 10,000 and Rs 20,000 per month.
The cash and credit limit are usually decided by the bank based on your credit history, spending patterns, and repayment behaviour. The credit and cash limits are not fixed. Banks can either increase or decrease the limit based on your usage. Any revisions in the credit and cash limit are usually communicated by the bank through post, email, and message.
Pros and Cons of Cash Withdrawal Through Credit Card
The following are the advantages of cash withdrawal through credit card.
- To withdraw cash using your credit card, you do not need to submit any paperwork or documentation. Moreover, you do not require any approval from the bank nor have to apply for any loan to withdraw money from your credit card, making it a better alternative to a personal loan.
- One of the biggest advantages of the credit card cash withdrawal feature is that you can access cash anytime you want. You can withdraw money from any ATM near you at any time of the day. Moreover, this also helps you in times of emergency as you can withdraw cash anytime.
- Banks have the flexibility to adjust your cash withdrawal limits. If spending patterns are consistent, and you have a good repayment and credit history, banks can increase your cash withdrawal limits upon request.
The following are the disadvantages of cash withdrawal through credit card.
- Credit card issuers and banks charge a cash advance fee and other charges, such as ATM fees, when you withdraw cash using your credit card. This increases your total outflow of money as you end up repaying the money you withdrew and also pay for the charges and fees levied by the bank.
- Banks charge interest rates right from the time you withdraw cash using your credit card until you repay your dues. This is because there is no interest-free period for credit card cash withdrawals. The interest rate is exorbitantly high, which ultimately increases your expenses.
- Credit cards are designed to offer cashback and rewards when you use them for transactions. However, the same doesn’t apply to cash withdrawals. You won’t earn any rewards when you withdraw cash using your credit card.
- The cash limits offered by credit cards are lower than the credit limit. This means you will be able to withdraw only a small amount out of your total credit limit.
- If you fail to repay your credit card dues, it will reflect in your credit history and can affect your credit score.
- Withdrawing cash using a credit card isn’t bad. However, if you do not repay the money withdrawn within a specified period, the interest will keep piling up and you can get trapped in a vicious cycle of debt.
Dos and Don’ts of Credit Card Cash Withdrawal
Dos
- Use your credit card to withdraw cash only for emergencies.
- Check and understand the charges and fees beforehand to avoid surprises.
- Pay the cash withdrawal balance as soon as possible. If you have money, try to pay it off before the statement is even generated.
- Read the terms and conditions of cash withdrawal through credit cards before you withdraw money.
Don’ts
- Don’t max out the cash limit on your credit card.
- Do not withdraw more than the cash limit.
- Don’t withdraw from other bank’s ATMs until and unless necessary. Try to stick to your own bank’s ATM for cash withdrawals.
Concluding Thoughts
Credit card cash withdrawals are very useful in case of emergencies and when you need immediate cash. However, it is important to understand that credit card cash withdrawal involves a lot of expenses, such as cash advance fees, ATM fees, and interest. Hence, it is essential to know all the costs upfront to make an informed decision. Moreover, you must use your credit card responsibly to avoid getting trapped in a debt cycle and maintain a healthy credit score.
Cash Withdrawal Charges of Popular Credit Cards
| Sr.No. | Credit Card Name | Cash Withdrawal Charges | Interest Rates (per annum) |
| 1 | Amazon Pay ICICI Bank Credit Card | 2.5% | 42.0% |
| 2 | ICICI Credit Card Charges | 2.5% | 42.0% |
| 3 | ICICI Bank HPCL Super Saver Credit Card | 2.5% | 42.0% |
| 4 | Flipkart Axis Bank Credit Card | 2.5% | 52.9% |
| 5 | Axis Bank ACE Credit Card | 2.5% | 52.9% |
| 6 | Axis Bank Credit Card Charges | 2.5% | 52.9% |
| 7 | Axis Bank My Zone Credit Card | 2.5% | 52.9% |
| 8 | Axis Bank Privilege Credit Card | 2.5% | 52.9% |
| 9 | Axis Bank SELECT Credit Card | 2.5% | 52.9% |
| 10 | Axis Bank Vistara Infinite Credit Card | 2.5% | 52.9% |
| 11 | HDFC Bank Diners Club Black Credit Card | 2.5% | 42.0% |
| 12 | HDFC Bank INFINIA Credit Card Metal Edition | 2.5% | 42.0% |
| 13 | HDFC Bank Millennia Credit Card | 2.5% | 42.0% |
| 14 | HDFC Bank MoneyBack Plus Credit Card | 2.5% | 42.0% |
| 15 | Swiggy HDFC Bank Credit Card | 2.5% | 42.0% |
| 16 | HDFC Bank Regalia Gold Credit Card | 2.5% | 42.0% |
| 17 | HDFC Credit Card Charges | 2.5% | 42.0% |
| 18 | SBI Credit Card Charges | 2.5% | 42.0% |
| 19 | SBI ELITE Credit Card | 2.5% | 42.0% |
| 20 | SBI Prime Credit Card | 2.5% | 42.0% |
| 21 | SBI SimplyCLICK Credit Card | 2.5% | 42.0% |
| 22 | BPCL SBI Credit Card | 2.5% | 42.0% |
| 23 | Cashback SBI Credit Card | 2.5% | 42.0% |
| 24 | Air India SBI Signature Credit Card | 2.5% | 42.0% |
| 25 | IRCTC SBI Card Premier | 2.5% | 42.0% |
| 26 | 6E Rewards XL – Indigo Kotak Bank Credit Card | 2.5% | 44.4% |
| 27 | PVR Kotak Platinum Credit Card | 2.5% | 44.4% |
| 28 | Kotak Mahindra Bank Credit Charges | 2.5% | 42% – 44% |
| 29 | Myntra Kotak Credit Card | 2.5% | 44.4% |
| 30 | IndianOil Kotak Credit Card | 2.5% | 44.4% |
| 31 | IDFC FIRST Classic Credit Card | Rs 199 | 9 – 42% |
| 32 | IDFC FIRST Select Credit Card | Rs 199 | 9 – 42% |
| 33 | IDFC HPCL First Power Plus Credit Card | Rs 199 | 9 – 42% |
| 34 | Club Vistara IDFC First Credit Card | Rs 199 | 9 – 42% |
| 35 | Standard Chartered Bank Credit Card Charges | 3.0% | 41.9% |
| 36 | Standard Chartered Super Value Titanium Credit Card | 3.0% | 41.9% |
| 37 | Yes Bank Credit Card Charges | 2.5% | 45.6% |
| 38 | American Express Membership Rewards® Credit Card | 3.5% | 42.0% |
| 39 | American Express Platinum Travel Credit Card | 3.5% | 42.0% |
| 40 | American Express SmartEarn Credit Card | 3.5% | 42.0% |
| 41 | American Express ® Platinum Reserve | 3.5% | 42.0% |
| 42 | American Express ® PAYBACK Credit | 3.5% | 42.0% |
| 43 | American Express Membership Rewards ® Cre | 3.5% | 42.0% |
| 44 | EazyDiner Indusind Bank Credit Card | 2.5% | 46.0% |
| 45 | IndusInd Bank Credit Cards | 2.5% | 46.0% |
| 46 | HSBC Bank Credit Card Charges | 2.5% | 41.9% |
| 47 | Bank of Baroda (BoB) Eterna Credit Card | 2.5% | 39.0% |
| 48 | Bank of Baroda Credit Card Charges | 2.5% | 18% – 43.2% |
| 49 | RBL Credit Card Charges | 2.5% | 39.6 – 47.8% |
| 50 | BookMyShow RBL Bank Play Credit Card | 2.5% | 39.6 – 47.8% |
| 51 | AU Bank LIT Credit Card | 2.5% | 41.8% |
Last updated as of 11th December 2023.
Frequently Asked Questions
Does cash withdrawal with a credit card impact your credit score?
Withdrawing cash using a credit card doesn’t impact your credit score until and unless you do not repay your dues. If you fail to repay the withdrawn amount, it will be reflected in your credit history, and your credit score will fall.
Are there any charges for credit card cash withdrawals?
Credit card cash withdrawal attracts various charges, including cash advance fees, finance charges, interest, and ATM fees. In case you fail to pay your dues on time, you will also have to pay a late payment fee.
Can I use an ATM with a credit card?
Most credit cards in the market now have the feature to withdraw cash from an ATM. However, checking the costs and terms and conditions of withdrawing money from an ATM using a credit card is important.
Can I transfer money from a credit card to a bank account?
Several banks allow you to transfer money from your credit card to your bank account. However, it is subject to a daily limit, which varies across banks.
What will happen if I withdraw cash from my credit card?
When you withdraw cash from an ATM using your credit card, you will be charged a cash advance fee of 2.5% to 3%. You will also be charged a finance fee and interest for the amount withdrawn. The interest is calculated right from the day you withdraw money and is charged until the day you repay. For credit card cash withdrawals, there is no interest-free period. So, you do not have any grace period to pay your dues without interest. Bans also charge an ATM fee if you withdraw cash from another bank’s ATM. Finally, they also charge a late payment fee if you fail to pay your dues.
