What are credit card cash withdrawal charges
A credit card cash withdrawal, also known as a cash advance on a credit card, enables you to take out cash by utilizing your credit card when faced with an emergency situation. This feature acts as an instant loan option for those in possession of a credit card. Nevertheless, it may not be as advantageous as it appears due to the numerous fees and charges associated with it. Once cash is withdrawn, you will be subject to credit card finance fees (applicable from the date of withdrawal) in addition to the cash withdrawal charges. Consequently, it is the most expensive type of credit that exists in the marketplace.
Credit card cash withdrawal limit
The credit card cash withdrawal limit for the Bajaj Finserv RBL Bank SuperCard is set by RBL Bank and varies depending on the individual's creditworthiness which usually ranges from 20% to 40% of your total limit.
Suppose you have a credit card with a credit limit of Rs. 1 lakh; in that case, you can take out Rs. 20,000 to Rs. 40,000 in cash, depending on various factors. The remaining limit on the credit card can be utilized for regular card transactions.
Withdrawing cash using your Bajaj Finserv RBL Bank SuperCard might seem like an easy solution in a financial emergency, but it's important to think about the fees and charges that will apply beforehand. Always try to prioritize paying off the balance on your credit card through regular payments before attempting a cash withdrawal.
Understand the Difference between Credit Card Cash Advance Limit and Credit Limit
The credit card cash advance limit is the maximum amount you can withdraw in cash, which is usually a portion of your total credit limit. The credit limit, on the other hand, is the full amount you can spend using your card for purchases, both online and offline.
Credit card cash withdrawal charges
Credit card cash withdrawal can be a lifesaver in times of emergency when cash is required. However, it's crucial to be aware of the charges that come with it to avoid any surprises. If you're a customer of Bajaj Finserv RBL Bank Supercard, here’s what you need to know about credit card cash withdrawal charges. It’s important to note that interest is also charged on the amount withdrawn, starting from the date of withdrawal. The interest rate varies but is typically higher than the interest rate for regular purchases.
When you withdraw cash using your credit card, you will be charged a fee, or a percentage of the total amount withdrawn. For Bajaj Finserv RBL Bank SuperCard, the cash advance fee is 2.5% of the amount (minimum Rs. 500 + GST) of the cash amount.
Cash withdrawal charges on top credit card providers |
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Credit card |
Cash advance fee |
2.5% of the amount (minimum Rs. 500 + GST) of the cash amount |
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2.5% of the amount (minimum Rs. 500 + GST) of the cash amount |
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Credit card cash withdrawal charges on Bajaj Finserv RBL Bank Credit Cards
When a cardholder withdraws cash using a credit card, a flat processing fee of 2.5% of the cash amount (minimum Rs. 500) + GST.
However, the Bajaj Finserv RBL Bank Credit Card provides the following benefits over other credit cards.
- Up to 50 days interest-free period on ATM withdrawals, starting from the date of the withdrawal
- Although credit cards charge high interest rates, Bajaj Finserv Credit Card comes with an affordable rate of 3.99% per month after the 50-day period expires
- Only a one-time Credit Card cash withdrawal fee of 2.5% is applicable as processing charges. This makes availing Bajaj Finserv RBL Bank SuperCard more affordable for users
Pros and cons of credit card cash withdrawal
Pros of credit card cash withdrawal |
Cons of credit card cash withdrawal |
Provides quick access to cash in emergencies, ensuring you have funds when needed. |
Each cash withdrawal incurs a fee, increasing the overall cost of accessing cash. |
No need to maintain a balance in your Savings Account, making it convenient for those without savings. |
Unlike regular purchases, there is no interest-free period, meaning costs accrue immediately. |
Does not require bank approval or extensive documentation, simplifying the process. |
Cash withdrawals do not earn reward points, reducing potential benefits compared to regular spending. |
The cash withdrawal limit is based on your credit limit, allowing access to a portion of your available credit. |
High-interest rates apply from the moment of withdrawal, making it an expensive borrowing option. |
Advantages of Withdrawing Cash From Your Credit Card
Withdrawing cash from your credit card offers immediate access to funds in emergencies when cash is urgently needed. It's a convenient option when you're unable to use your card for transactions, providing flexibility during unforeseen situations like travel or medical emergencies.
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Frequently asked questions
Credit cards offer instant cash access during emergencies, globally and without documentation. It ensures financial flexibility, acts as a backup, and is usable even where cards aren’t accepted.
Yes, there are charges associated with credit card cash withdrawals. For Bajaj Finserv RBL Bank SuperCard, the cash advance fee is between 2.5% of the amount withdrawn.
The credit card cash withdrawal limit is the maximum amount of cash that can be withdrawn using a credit card. It is generally lower than the overall credit limit on the card.
Yes, you can withdraw cash using your Bajaj Finserv RBL Bank SuperCard. This feature is also known as credit card cash withdrawal.
You can use the Bajaj Finserv RBL Bank SuperCard to withdraw cash from any ATM across India without paying any interest for up to 50 days.
Not all credit cards have the same cash withdrawal charges. These fees can differ based on the type of card you have, the policies of the financial institution that issued the card, and your own spending habits.
To determine the cash withdrawal charges for your specific credit card, you should check the terms and conditions provided by your issuer. If you need more detailed information, don’t hesitate to reach out to your card issuer’s customer service.
