What is the interest rate for Credit Card Cash withdrawal?

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. 

1. Effortless

In times of crisis, your Credit Card is handy; you can easily withdraw cash. Even though Credit Card withdrawal charges are applicable, it is still the best option in need.

2. Instant Funds

You don't need to wait to withdraw funds. Cash is available through any ATM 24x7 as per your requirement.

3. Payment of fees

You pay fees only when you use the facility. Charges for withdrawing cash from an HDFC Credit Card are only on a utilisation basis.

4. 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.

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. At HDFC Bank, we offer a cash advance limit of 40%. So, if your Credit Card limit is ₹1 lakh, you can withdraw cash up to ₹40,000. The type of your Credit Card ascertains your cash advance limit. 

An interest rate is applicable for Credit Card cash withdrawals. 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 Calculated at a monthly percentage rate on the cash amount withdrawn, the time frame for interest calculation is from the withdrawal date until the settlement of the total withdrawn amount.

It ranges anywhere between 1.99 per cent to 3.49 per cent. However, in case of any default, it is 3.50 per cent (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. 

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At HDFC Bank, a 2.5 per cent fee on the withdrawn amount or ₹500, whichever is higher, is levied.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 per cent. 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 withdrawal date 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 dos and don'ts of Credit Card cash withdrawal here. 

Apply for a Credit card online and avail instant rewards and deals 

*Terms and conditions apply. Credit Card approvals are at the sole discretion of HDFC Bank Limited. Credit Card approvals are subject to documentation and verification per the bank's requirement.