ATM Credit Card Cash Withdrawal

Credit Card Cash Withdrawal In ATM, How To Withdraw, Charges, Fees

Credit Card Cash Withdrawal: Credit Card has made one’s life easier who are looking to avail loans instantly. There are many features available on Credit Card and one of the best features of a Credit Card is that Cash Advance which is nothing but the withdrawal of liquid cash instantly. The advantage of a Credit Card is that one doesn’t require any bank approval or provide documents to avail the loan or withdraw the cash immediately.

However, withdrawing cash with the help of a Credit Card from an ATM will cost you more. Withdrawing cash through Credit Card will collect Credit Card finance charges at some interest depending on the bank. Thus any individual is recommended to use Credit Card for cash withdrawal purposes only in emergency hours.  On this page, we will provide you with all the necessary information on how to withdraw money from a credit card at an ATM and what will be the charges if we withdraw cash from Credit Card. Read on to find more.

What Is Credit Card Withdrawal?

Credit Cash withdrawal from an ATM is otherwise called a Cash Advance. The Cash Advance feature of Credit Card allows the Credit Card users to withdraw cash from the bank’s ATM. Many banks provide Credit Card to process the transactions, thus those Credit Cards coming with the Cash Advance feature are considered as an additional feature provided by the bank officials.

With the help of a Credit Card, any cardholder can withdraw the Cash and he/she will have to repay the withdrawal amount with some amount interest charges to the bank. The Credit Card Withdrawal Charges/Fees depends on the Bank under which the user has an account. However, few banks don’t provide Cash Advance Feature. So, one needs to check with the bank before applying for Credit Card if they cover the Cash Advance feature or not.

Credit Card Cash Withdrawal Limit

Any Credit Cardholder will be able to withdraw the cash based on the Credit Limit allocated by the Bank officials. Usually, the Credit Card Cash limit for withdrawal would range from 20% to 40% out of your total Credit limit. It is to be noted that Credit Limit and Credit Card Cash Limit is totally 2 different things.

  1. Credit Limit: Credit limit is the maximum amount which you can spend or make transactions through Credit Card.
  2. Cash Limit or Cash Advance Limit: The cash limit is the maximum cash you can withdraw from your Credit limit.

For example, let us assume that a user has a Credit Card, whose credit limit is 2 Lakhs. Then the cash advance limit of the same user will be around 40,000 to 80,000 (20% to 40%). 

Note: Cash Limit and Credit Limit vary from bank to bank.

Is It Bad To Withdraw Money From a Credit Card?

Any individuals will withdraw money from Credit Card when they really run out of cash in crucial situations. However, there are few disadvantages which the user will have to face if they are withdrawing Cash through Credit Card:

  1. Interest rates will be imposed from the date of withdrawal till the repayment is made.
  2. Since it is the withdrawal of money, no credit score will be updated.
  3. A cash advance fee will be imposed on every withdrawal.

What Is Credit Card Cash Advance Fee?

Credit Card Cash Withdrawal Fee: Credit Card Cash Advance fee is the fee which is imposed by the bank officials. On every withdrawal transaction using Credit Card, a Cash advance fee will be charged which is some percentage of the cash withdrawn.

Usually, banks charge 2.5% to 3% of the withdrawn amount as the Credit Card Withdrawl fee. That is bank charges a minimum of Rs.300 to Rs.500 as the cash advance fee. This cash advance fee will be imposed by the officials from the date of withdrawal to the paid date. Also, individuals must note that withdrawing multiple times through Credit Card will cost the charges. In simple words, for every cash withdrawal through Credit Card, some amount of charges will be applied.

Few Banks Credit Card Cash Withdrawal Charges

As stated above, every bank charges some fees and it varies from bank to bank. Here are few examples of the top banks and their fee charge for Credit Card Cash withdrawal.

Bank Name Credit Card Cash Advance Fee
Credit Card Cash Withdrawal Charges HDFC 2.5% of the withdrawn amount subject to a minimum of Rs.500
ICICI Credit Card Withdrawal Charges 2.5% of withdrawn amount subject to a minimum of Rs.300
Axis Bank Credit Card Withdrawal Charges 2.5% of the withdrawn amount, subject to a minimum of Rs.250
SBI Credit Card Withdrawal Charges 2.5% of withdrawn amount subject to a minimum of Rs.300
Citibank Credit Card Withdrawal Charges 2.5% of the withdrawn amount, subject to a minimum of Rs.500

What Will Be The Interest Charges If We Withdraw Cash From Credit Card?

There are many types of Credit Card and based on the type of Credit Card, one will have to pay extra interest charges on withdrawal of the cash. If the cardholder pays the outstanding cash amount on time, then the interest rates imposed by the banks will be less. But if the cardholder doesn’t pay the outstanding bills on time, then some interest rates will be imposed. Usually, banks charge 2.5% to 3.5% interest charges per month which again varies from bank to bank.

Interest Charges on Credit Card Cash Withdrawal

The monthly and annual interest charges on credit card cash withdrawal by various banks are tabulated below:

Bank Name Interest Charges On Credit Card Cash Advance
Monthly Interest Charge Annual Interest Charge
HDFC Credit Card Interest Charges 1.99% – 3.5% 23.88% – 42%
ICICI Credit Card Interest Charges 2.49% – 3.5% 29.88% – 42%
Axis Bank Credit Card Interest Charges 2.95% – 3.5% 35.4% – 42%
SBI Credit Card Interest Charges Up to 3.35% Up to 40.2%
Citibank Credit Card Interest Charges 3.1% – 3.5% 37.2% – 42%

How To Withdraw Cash From Credit Card In ATM?

Withdrawing cash from Credit Card is as simple as that of withdrawing cash from a debit card in an ATM. The steps to withdraw the cash from Credit Card in ATM is as follows:

  1. Visit your nearest ATM.
  2. Insert your Card and Enter your PIN.
  3. Enter the amount (Keep an eye on Credit Card Cash Advance limit).
  4. Confirm and collect your money.

Few banks insist to withdraw the money from the same bank from where the user has an account. And also few banks charge extra money if they withdraw money from other banks’ ATMs where they don’t have an account.

Impact of Cash Advance On Credit Score

As long as you pay the bills on time, your credit score will not be affected. However, due to high-interest rates imposed by the banks, it would be quite difficult for one to clear the outstanding bill payments which will affect the credit score.

Advantages of Credit Card Cash Withdrawal

As there is something good in everything, there are also few benefits in withdrawal of money through Credit card and they are:

  1. Instant liquid cash in hand
  2. Flexible cash limit for withdrawal
  3. No documents or approval needed to withdraw the cash in advance.

FAQs on Credit Card Cash Withdrawal In ATMs

The frequently asked questions on Credit Card Cash Withdrawals are given below:

Q.  What is the Credit Card Cash Withdrawal Limit?
A. The Credit Card Cash withdrawal limit varies from bank to bank. However, most of the bank charges 20% to 40% of the Credit limit for withdrawal of cash in advance.

Q. How do you get cash from your Credit Card?
A. Any individual whose Credit Card has a Cash Advance feature can simply get cash by withdrawing the money through ATM with the help of a Credit Card.

Q. Can you withdraw money from a credit card at an ATM?
A. Yes, if the Credit Card has the feature of Cash Advance, then any individual can withdraw the cash from an ATM.

Now that you are provided with all the necessary information about Credit Card Cash Withdrawal in ATM and we hope this detailed article is helpful to you. If you have any queries about this page or Credit Card Cash Withdrawal fees, please reach us through the comment box below and we will get back to you as soon as possible.