Synopsis
Interest is applicable to Credit Card cash withdrawals and will be charged until the amount is repaid.
Along with the interest rate, you will also incur cash advance fees.
The cash advance fee is typically a percentage of the withdrawal limit.
Want to know about the Credit Card cash withdrawal charges and interest rate? We provide you with all necessary details.
Your HDFC Bank Credit Card allows you to withdraw cash. You can use this facility to your advantage. Although the feature comes with a ceiling on cash withdrawal, during an emergency, it is of help.
Credit Card cash withdrawal, also known as cash advance is a form of a loan. Thus, the bank charges interest. Before we proceed to learn about the interest rate, here’s a list of benefits you get on Credit Card cash withdrawal:
Perks of Credit Card Cash Withdrawal
Effortless
In times of crisis, your Credit Card comes in handy; you can easily withdraw cash. Even though Credit Card withdrawal charges are applicable, it is still the best option in need.
Instant Funds
You don’t need to wait to withdraw funds. Cash is available through any ATM 24x7 as per your requirement.
Payment of Fees
You pay fees only when you use the facility. Charges for withdrawing cash from HDFC Credit Card are only on utilisation basis.
Pay using EMI
If you withdraw cash through your Credit Card, you can pay it back via an EMI facility readily available on your card.
Credit Card Cash Limit
The cash advance limit is the amount you can withdraw using your Credit Card. It is calculated as a percentage of the total available credit limit. Banks offer a cash advance limit ranging from 20% to 40%. So, if your Credit Card limit is ₹1 lakh, you can withdraw between ₹20,000 to ₹40,000 as cash. The type of your Credit Card ascertains your cash advance limit.
Interest Rate for Credit Card Cash Withdrawal
An interest rate is applicable for Credit Card cash withdrawal. It is similar to the monthly interest charges levied on your Credit Card. Calculated at a monthly percentage rate on the cash amount withdrawn, the time frame for interest calculation is from the date of withdrawal until the settlement of the total withdrawn amount.
It ranges anywhere between 1.99% to 3.49%. However, in case of any default, it is 3.50% (maximum). The bank may change these rates as and when mandated by RBI.
The interest is in addition to the Credit Card Cash withdrawal charges.
What is Cash Advance Fee?
A cash advance fee is a charge levied by banks when you withdraw cash using your Credit Card. It is typically a percentage of the withdrawn amount or a fixed minimum fee, whichever is higher. This fee is added to your Credit Card bill and attracts interest from the date of withdrawal until repayment. Cash advances also reduce your available credit limit and should be used only in emergencies due to high associated costs.
Credit Card Cash Withdrawal Fee at HDFC Bank
Every cash withdrawal transaction comes with a fee. The fee amount is billed in the following month’s statement.
At HDFC Bank, a 2.5% fee on the withdrawn amount or ₹500, whichever is higher, is levied. For instance, if you withdraw ₹40,000 with your HDFC Credit Card, the withdrawal fee levied will be ₹ 1,000, calculated at 2.5%. Similarly, if you withdraw a smaller amount of ₹5,000, you will be charged ₹500. Do keep in mind that this fee is at the prudence of the bank and is subject to change. The Credit Card withdrawal charges are applied from the date of withdrawal until the payment is settled.
Now that you know about the cash withdrawal charges in HDFC Credit Card use this facility to your advantage. To apply for a Credit Card, Click here to get started.
Read more on the do’s and don’ts of Credit Card cash withdrawal here.
Apply for Credit card online and avail instant rewards and deals.
*Disclaimer: Terms and conditions apply. Credit Card approvals at the sole discretion of HDFC Bank limited. Credit Card approvals is subject to documentation and verification as per Banks requirement.
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