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Credit Card Cash Withdrawal

If you own a credit card, you can withdraw money from credit card. Credit card cash withdrawal is the facility to take out cash from ATMs using your credit card in the same way you use a debit card. However, this facility comes with hefty credit card cash withdrawal charges and interest costs. This service should only be used only in a real emergency. The cash advance fee makes this alternative a costly financial aid. Below are the details on credit card cash withdrawals. 

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Credit Card Cash Withdrawal Limit

There is a credit card cash withdrawal limit on every card beyond which you cannot withdraw cash via an ATM or bank. Out of your total available credit limit, you are assigned a cash withdrawal limit ranging from 20% to 40%. A credit limit is the maximum amount limit you can spend using a credit card whereas a cash advance or withdrawal limit is the maximum money you can withdraw using your credit card. You can contact the customer care team of your card issuer to know what is cash limit in credit card.

Advantages & Disadvantages of Credit Card Cash Withdrawal

Here are some of the pros and cons of the credit card cash withdrawal facility you must consider before swiping your credit card at the nearest ATM:

AdvantagesDisadvantages
24X7 access to cash at ATMs during emergency situationsIncurs a relatively high cash advance fee on all transactions
No documentation or approval requiredInterest is charged from the date of the transaction till the full payment 
Flexible withdrawal limitsCash advances transactions are not eligible for credit card reward points
No restrictions on end usage of the cashNo interest-free or grace period
Instant funding option compared to a personal loan or other loansYou must have a credit card to avail of this facility

 

What is Credit Card Cash Withdrawal Fee?

Generally, withdrawing cash using your credit card is discouraged by credit card providers since you are borrowing hard cash. To prevent misuse of this facility, the card issuers levy certain fees and charges on credit card cash advances. 

A card issuer charges a cash advance fee for every transaction you make using your credit card. Typically, most credit card providers charge either a certain percentage of the cash advance or a fixed fee. Top banks in India usually charge about 2.5% of the transaction amount as a cash advance fee, subject to a minimum of Rs. 250 to Rs. 500. 

Credit Card Cash Withdrawal Charges of Top Credit Cards

Here's a list of cash advance fees charged for some popular credit cards:

Credit Card NameCash Advance Fees (Per Month)
Axis Bank Neo Credit CardAxis Bank credit card cash withdrawal charges are 2.5% of the cash amount, a minimum of Rs. 500
Axis Bank MY ZONE Credit Card2.5% of the cash amount, minimum Rs. 500
Axis Bank Select Credit Card2.5% of the cash amount, minimum Rs. 500
SBI Elite Credit CardSBI credit card cash withdrawal charges are 2.5% or Rs. 500, whichever is higher
SBI Prime Credit Card2.5% or Rs. 500, whichever is higher
SBI Simply Click Credit Card2.5% or Rs. 500, whichever is higher
IDFC First Millennia Credit Card0.75% to 3.5% of the transaction amount
IDFC First Classic Credit Card0.75% to 3.5% of the transaction amount
IDFC First Wealth Credit Card0.75% to 3.5% of the transaction amount
AU Bank Zenith Credit Card2.5% of the amount withdrawn, minimum Rs. 100
AU Bank Vetta Credit Card2.5% of the amount withdrawn, minimum Rs. 100
AU Bank Altura Credit Card2.5% of the amount withdrawn, minimum Rs. 100
HDFC Freedom Credit Card2.5% of the amount withdrawn, minimum Rs. 500
HDFC IndianOil Credit CardHDFC credit card atm withdrawal charges are 2.5% of the amount withdrawn, with a minimum of Rs. 500 
HDFC Infinia Credit Card2.5% of the amount withdrawn, minimum Rs. 500 
Yes Bank Prosperity Rewards Plus Credit Card2.49% of the amount withdrawn
Yes Bank Prosperity Edge Credit Card3.80% of the amount withdrawn
Yes Bank Premia Credit Card3.80% of the amount withdrawn
Kotak Urbane Gold Credit CardKotak credit card cash withdrawal charges are Rs. 300 per Rs. 10,000 or part thereof
Kotak Royale Signature Credit CardRs. 300 per Rs. 10,000 or part thereof
Kotak League Platinum Credit CardRs. 300 per Rs. 10,000 or part thereof
HSBC Smart Value Credit Card2.5% of the transaction amount, minimum Rs. 300
HSBC Visa Platinum Credit Card2.5% of the transaction amount, minimum Rs. 300
HSBC Cashback Credit Card2.5% of the transaction amount, minimum Rs. 300

Interest Charge on Credit Card Cash Withdrawal

Credit card cash withdrawals involve interest as they are not eligible for the interest-free period. Finance charges or credit card interest rates will be applicable on cash transactions from the first day. These charges are quite high and can range from 2.5% to 3.9% per month. The interest is compounded on a daily basis, which means that the longer your cash advance remains unpaid the more interest will be accumulated. Hence, it is advised not to opt for cash withdrawals on credit cards and, even if you do so, try to pay back the amount as early as you can.

Credit Card Cash Withdrawal Interest Charges of Top Credit Cards

Following are the interest charges applicable on credit card cash advance facility on top credit cards in India:

Credit Card Name

Interest on Credit Card Cash Withdrawal

Axis Bank Neo Credit CardInterest on cash withdrawal from credit card of Axis Bank is 3.6% per month (52.86% per annum)
Axis Bank MY ZONE Credit Card3.6% per month (52.86% per annum)
Axis Bank Select Credit Card3.6% per month (52.86% per annum)
SBI Elite Credit Card3.50% per month (42% per annum)
SBI Prime Credit Card3.50% per month (42% per annum)
SBI Simply Click Credit Card3.50% per month (42% per annum)
IDFC First Millennia Credit Card0.75% to 3.5% per month (9% to 42% per annum)
IDFC First Classic Credit Card0.75% to 3.5% per month (9% to 42% per annum)
IDFC First Wealth Credit Card0.75% to 3.5% per month (9% to 42% per annum)
AU Bank Zenith Credit Card1.99% to 3.49% per month
AU Bank Vetta Credit Card1.99% to 3.49% per month
AU Bank Altura Credit Card1.99% to 3.49% per month
HDFC Freedom Credit Card3.60% per month (43.20% per annum)
HDFC IndianOil Credit Card1.99% per month (23.88% per annum)
HDFC Infinia Credit Card3.60% per month (43.20% per annum)
Yes Prosperity Rewards Plus Credit Card3.80% per month (45.6% per annum) 
Yes Prosperity Edge Credit Card3.80% per month (45.6% per annum) 
Yes Premia Credit Card3.80% per month (45.6% per annum) 
Kotak Urbane Gold Credit Card3.50% per month (42% per annum)
Kotak Royale Signature Credit Card3.50% per month (42% per annum)
Kotak League Platinum Credit Card3.50% per month (42% per annum)
HSBC Smart Value Credit Card1.99% to 3.49% per month
HSBC Visa Platinum Credit Card1.99% to 3.49% per month
HSBC Cashback Credit Card1.99% to 3.49% per month

How to Withdraw Cash from a Credit Card?

If you are confused about how to withdraw money from credit card, don’t worry. Withdrawing cash using a credit card is easy. You just need to follow the same process as you would do withdrawing cash from a debit card. Visit your nearest ATM and insert your credit card into ATM machine to withdraw the required cash anytime. You can withdraw cash with a credit card from any bank’s ATM. However, certain banks may levy separate credit card ATM withdrawal charges for withdrawing cash from other banks’ ATMs. If you still have any queries, you can ask your credit card provider’s customer care team about how to withdraw cash from credit card.

Impact of Credit Card Cash Withdrawal on Credit Score

Credit card cash withdrawals are not reported separately by the card issuers to the credit bureaus. Only the total outstanding amount due along with other defaults will be reported to the credit agencies. Withdrawing cash from credit cards does not have a direct effect on your credit score. However, if you could not pay even the minimum amount due (MAD) on your credit card within the period prescribed by the issuer, your credit score is impacted. Make sure you keep track of all the outstanding balances and clear the payment on time to keep your credit score stable.

FAQs

Can I withdraw money from credit card?

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If you want to know can we withdraw money from credit card, the answer is yes. Most credit cards come with a cash withdrawal facility. Just ask your credit card provider ‘can we withdraw cash from credit card’.

Do I have to pay any fee for withdrawing cash using my credit card?

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Yes, you have to pay a cash advance fee for availing of the credit card cash withdrawal facility.

What are the credit card cash withdrawal charges on credit cards?

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The credit card cash withdrawal charges on top credit cards in India range between 0.75% to 3.80% of the amount withdrawn per month.

Does ICICI Bank levies a cash advance fee?

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Yes, ICICI credit card cash withdrawal charges are 2.5% of the withdrawn amount or Rs. 300, whichever is higher.

How to withdraw cash from credit card without charges?

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There are a few credit cards that involve zero cash advance fees. Just ask your credit card provider if they have this facility. 

Is the cash withdrawal facility available on all credit cards?

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No, this facility is available on select credit cards and the cardholder is informed beforehand about it.

Do I have to get approval for withdrawing money from my credit card?

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No, you don’t need any approval from the card issuer if your credit card has this facility. Just visit any ATM and withdraw cash using the card almost immediately.

When should I repay after withdrawing the cash using my credit card?

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You have to repay the withdrawn cash at the time of making payment for your card statement. You don’t need to pay the amount in cash. It can be made online through net banking, UPI, demand draft, etc.

What are the charges for cash withdrawal using HDFC credit card?

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HDFC credit card cash withdrawal charges are 2.5% of the amount withdrawn, subject to a minimum of Rs. 500. You must ask the customer support team about HDFC credit card withdrawal charges as certain credit cards may have different charges.

Can I withdraw cash from credit card of ICICI Bank?

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Yes. Most ICICI credit cards come with this facility with certain ICICI credit card atm withdrawal charges. If you want to this facility for free, you can ask the card provider how to take money from credit card without charges. Some issuers also offer certain credit cards without any credit card withdrawal charges.

How to get cash from credit card?

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If your credit card has a cash withdrawal facility, you can go to any nearby ATM and use your credit card just like a debit card to withdraw cash. You can also withdraw money from credit card without charges if the card comes with zero cash advance fee feature.

What are the charges for cash withdrawal using SBI credit card?

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SBI credit card ATM withdrawal charges are usually 2.5% or Rs. 500, whichever is higher. If you want to know how to withdraw money from credit card without fee, you can contact your credit card provider’s customer care team.

How to withdraw cash from credit card in ATM?

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The answer to how to take cash from credit card is just to insert your credit card into the ATM kiosk with your ATM credit card and follow the instructions just as you do with a debit card.

Can credit card be used in ATM?

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If you are confused about can we use credit card in ATM, the answer is yes, if your credit card comes with a cash advance facility.

What are the cash withdrawal charges for Flipkart Axis Bank credit card?

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Flipkart Axis Bank credit card cash withdrawal charges are 2.5%, subject to a minimum of Rs. 500 of the cash amount.

What are the cash withdrawal charges for Bank of Baroda (BoB) credit card?

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The BoB credit card cash withdrawal charges are 2.5%, subject to a minimum of Rs. 200.