HDFC Credit Card Cash Withdrawal

HDFC Credit Card cash withdrawal, also known as a cash advance, is a feature offered on most HDFC credit cards. It allows cardholders to withdraw cash from ATMs just like a debit card. However, while this facility is convenient during emergencies, it comes with high charges, making it a costly option for credit. It’s recommended to use cash withdrawal only when absolutely necessary. Be sure to check your card’s withdrawal limit and applicable fees before using this feature.

What is HDFC Credit Card Cash Advance?

The HDFC credit card cash advance feature allows you to withdraw cash from your credit card, similar to using a debit card. Instead of swiping your card for payments, this feature lets you access liquid cash for emergencies, which you can repay later along with applicable charges.

HDFC offers this facility on most of its credit cards. While the withdrawal limits and finance charges differ based on the card type, other aspects like the cash advance fee remain consistent across cards. Always check your card’s terms to understand the limits and fees before opting for a cash advance.

Credit Card Cash Withdrawal Limit

The cash withdrawal limit on a credit card, also known as the cash advance limit, determines how much cash you can withdraw from your available credit limit. This limit is usually a percentage of your total credit limit, ranging from 20% to 40%. For example, if your credit limit is ₹1 lakh and the cash limit is 30%, you can withdraw up to ₹30,000 as liquid cash, while the remaining ₹70,000 is reserved for card transactions.

For HDFC credit cards, the cash advance limit typically stands at 40% of the total credit limit for most cards. However, corporate credit cards may have different limits—30% for individual liability and 40% for corporate liability. Always check your card's specific terms to know the exact cash withdrawal limit.

How to Withdraw Cash Using an HDFC Credit Card

Withdrawing cash from your HDFC credit card is simple and works similarly to using a debit card. You can withdraw cash from any ATM, not just HDFC ATMs.

Steps to Withdraw Cash:

  • Visit any ATM nearby.
  • Insert your HDFC credit card and enter your PIN.
  • Choose your preferred language.
  • Select the Cash Withdrawal option.
  • Enter the amount you wish to withdraw and press Confirm.

Before making a withdrawal, ensure you have enough cash limit available on your credit card. You can check this through HDFC NetBanking or by contacting the HDFC credit card customer care service. Note that cash withdrawals may incur additional charges, especially when using non-HDFC ATMs.

HDFC Cash Withdrawal Fees and Charges

Here’s a quick overview of the charges associated with the HDFC credit card cash advance feature:

  • Interest-Free Period: Not applicable. Interest starts accruing from the date of withdrawal.
  • Cash Advance Fee: 2.5% of the withdrawn amount or ₹500, whichever is higher.
  • Minimum Repayment Amount: 5% of the outstanding balance or a minimum of ₹200.
  • Cash Advance Limit: Up to 40% of the total credit limit.
  • Finance Charges: 1.99% to 3.5% per month (23.88% to 42% annually) on revolving credit.

Always check your specific card's terms to understand the applicable charges before using the cash withdrawal facility.

Pros and Cons of Credit Card Cash Withdrawal

Pros:

  • No Documentation or Approval: No need for extra paperwork or bank approvals to access cash.
  • Immediate Access to Cash: ATMs are available 24x7, ensuring instant cash whenever needed.
  • Convenient Limits: Allows withdrawals up to a specific portion of your credit limit, making it flexible for emergencies.

Cons:

  • Interest Charges from Day One: Interest starts accruing immediately after the withdrawal and continues until the full amount is repaid.
  • Cash Advance Fee: A fee is charged on every withdrawal, making it an expensive option.
  • No Reward Points: Transactions involving cash advances do not earn any credit card rewards.
  • High Interest Rates: The interest rate for cash advances is significantly higher compared to regular credit card transactions.

Use the cash withdrawal facility cautiously to avoid high costs.

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Impact of Cash Advance on Credit Score

Using the cash advance feature on your credit card does not directly impact your credit score, as credit bureaus report the overall outstanding balance rather than specific transactions like cash withdrawals.

However, if you fail to pay even the minimum due amount by the due date, it can negatively affect your credit score. To maintain a stable credit score, it's essential to track your outstanding balance and ensure timely payments. As long as payments are made on time, your credit score remains unaffected.

HDFC Credit cards

FAQs on HDFC Credit Card Cash Advance

Yes, you can use your HDFC Credit Card to withdraw cash at any bank’s ATM. However, additional charges will apply.

You can check your total and available cash limit by logging into HDFC Net Banking or the HDFC Mobile App. Alternatively, call HDFC customer care with your credit card details to inquire about your cash limit.

No, the cash advance fee, along with finance charges, will be reflected in your next credit card billing statement.

You can request a cash limit increase after using your HDFC Credit Card for 6–12 months. Approval is at the bank’s discretion. Contact HDFC customer care to check your eligibility for a limit enhancement.

No, as long as your credit card has a cash withdrawal facility, you can withdraw cash directly at an ATM without prior approval from the bank.

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Please click the links below to find details and instructions related to HDFC Bank Credit Cards that can help you in easily managing your card:

HDFC Bank Credit Cards

Credit Card by Banks

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