While cardholders can make payments with credit, they can even avail liquid cash with the credit card cash withdrawal facility. Also known as cash advance, this facility doesn’t require additional documentation or formalities. It is beneficial, especially when one is in urgent need of cash and has insufficient funds in savings.
Credit card usage:
- 10.2 million: Credit cards were added while more than 21 million debit cards were reduced between April 2018 and 2019.
- ● Rs. 4,173.211 million: Recorded in May 2019 as credit card usage in ATMs.
- 93%: Cardholders use credit cards for online or offline shopping.
- 90%: Credit card users in India are credit aware and conservative.
Ways to get cash from credit card:
There are primarily two ways to get cash from credit cards – ATM cash withdrawal and personal loan.
- ATM cash withdrawal
Most issuing companies offer the credit card cash withdrawal facility wherein you can draw out cash from ATMs instantly. Withdraw any amount from the available cash limit using the PIN and utilise at your discretion. For safety reasons, it’s better to change your credit card PIN after a certain period.
Cash limit is generally 20 to 40% of the credit limit on a credit card. It is the maximum amount within which users can make cash withdrawal from ATMs.
However, remember that its repayment involves hefty interest rates and other associated charges, making it a costly proposition.
- The rate of interest is levied from the day you withdraw funds and continues until the full repayment.
- You may need to pay processing charges, cash advance fee, etc. as well.
- Moreover, no reward program entails on credit card cash withdrawal.
- Personal loan
If you require a large amount, you can apply for a personal loan against the available credit limit of your card. This eradicates the need to go through lengthy loan sanctioning processes, especially during financial emergencies.
Avail the required amount and repay with interests and other associated fees. As this can also be an expensive option, ensure to evaluate your financial capabilities before proceeding.
How to withdraw cash from credit card without charges?
Look for a credit card which offers zero to nominal charges on cash withdrawal. Companies like Bajaj Finserv bring an exclusive, packed with industry-first features.
The Bajaj Finserv RBL Bank SuperCard provides the following benefits:
- ATM cash withdrawal
Withdraw cash from any ATM across India, and enjoy a 0% rate of interest on its repayment. This facility is available for up to 50 days. It requires a nominal processing fee up to 2.5%.
- Emergency personal loan
Avail an emergency personal loan against your unutilised credit limit. Opt to repay in 3 easy EMIs with 0% rate of interest for up to 90 days.
Apply for the SuperCard via an online application form or look for the pre-approved offers, which not only make the process simplified but also save time. Pre-approved offers are available on credit cards, business loans, personal loans, home loans and a host of other financial products. You can check your pre-approved offers by submitting a few basic details online.
Before going for cash withdrawal, the following are essential to be considered:
- Go through the latest monthly bill to check the available credit or cash limit. Make sure you know how to read your credit card statement correctly.
- Go through the terms and conditions of your card for fees and other liabilities.
- Get your credit card PIN handy or generate one.
Other benefits of credit cards
Besides ATM cash withdrawal and emergency personal loan, these payment cards pack a plethora of other benefits for users.
Below are some of the common credit card benefits:
- Earn attractive rewards points on joining, regular spends, milestone achievements, etc.
- Transact with your credit card and avail exclusive movie ticket vouchers, discounts, gift coupons, fuel surcharge waiver, etc.
- These payment cards are equipped with robust security features to ensure protection against fraud, cyber threats, unauthorised access, identity theft, etc.
- Convert expensive purchases over Rs. 3,000 into easy and manageable EMIs.
- One of the noteworthy credit card benefits is that you can make huge yearly savings.
- Build your CIBIL score and credit profile with timely payments of the monthly bills.
Credit cards can prove to be versatile financial tools for their lucrative features and benefits, if used strategically. It’s always recommended to avoid cash withdrawal unless the credit card comes with zero to nominal fees and charges. Opt for the best card which matches your requirements aptly.