ICICI Credit Card Cash Advance Option

ICICI Bank's credit cards offer a convenient cash advance option for customers in emergencies. This function allows you to withdraw cash using your credit card, providing immediate funds without the need for paperwork or bank approval. While it works like a short-term loan, it's important to remember that cash advances come with interest charges and fees. Repayment is required within a specified period, making it a useful but potentially expensive feature if not managed properly.

What is ICICI Credit Card Cash Advance?

The cash advance feature on ICICI Bank credit cards allows cardholders to withdraw cash from ATMs or through other means. This option essentially turns your credit card into a quick loan, enabling you to access cash in emergencies. While the service is available on most ICICI credit cards, the fees and finance charges may differ depending on the card variant. It’s important to note that these fees and charges are subject to change at the bank's discretion, so it's crucial to stay informed about the terms and conditions associated with cash advances.

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ICICI Credit Card Cash Withdrawal Limit

The ICICI credit card cash withdrawal limit, also known as the card advance limit, is the maximum amount of cash a cardholder can withdraw using their credit card. This limit is typically a percentage of the overall credit limit assigned to the card. Different ICICI credit cards come with varying cash limits, which are disclosed when the card is issued. For some cards, the cash advance limit may be set to zero during the first 180 days after issuance. After this period, the bank activates the cash advance feature, allowing cardholders to access cash within the defined limit.

ICICI Bank Credit Card Cash Advance Fee

ICICI Bank charges a fee for every credit card cash withdrawal, known as the cash advance fee. Typically, this fee is 2.5% of the withdrawn amount or a minimum of Rs. 300, whichever is higher. Additionally, interest is charged on the withdrawn amount at a rate of 2.95% per month (41.7% annually), starting from the date of the withdrawal until the full amount is repaid. Withdrawals from non-ICICI ATMs may carry a higher fee, depending on the ATM used. The cash advance fee is reflected on the billing statement for the following month.

Interest Charges on ICICI Cash Advance

Like other credit card transactions, cash withdrawals also incur finance charges, which are applied from the date of withdrawal until the balance is fully repaid. ICICI typically charges interest rates between 2.49% and 3.5% per month, depending on the credit card type. These interest charges will continue to accrue until the cash advance is paid in full.

Here’s a breakdown of the interest rates for some ICICI credit card variants:

ICICI Credit Card Variant Finance Charge (Monthly) Finance Charge (Annual)
Instant Platinum, Instant Gold, and Fixed Deposit Instant Credit Cards 2.49% 29.88%
All other ICICI credit cards (except the above) 3.40% 40.80%
Jet Airways ICICI Bank Credit Cards 3.50% 42%
In case of default 3.5% (Max.) 42%

It's important to note that cash advances do not have an interest-free period. The interest will be charged immediately from the withdrawal date until the full repayment is made. ICICI reserves the right to change interest rates based on factors such as spending pattern, payback, and card utilization.

How to Withdraw Cash Using an ICICI Credit Card?

Withdrawing cash using an ICICI Credit Card is similar to using a debit card. You can do this at any ICICI Bank ATM. Follow these simple steps:

1. Visit ICICI ATM

  • Go to an ICICI ATM kiosk near you.

2. Insert Your Credit Card and Enter PIN

  • Insert your ICICI credit card into the card slot and enter your PIN (the same one used for credit card transactions).

3. Select 'Cash Withdrawal'

  • Choose the 'Cash withdrawal' option from the ATM menu.

4. Enter the Amount and Press 'OK'

  • Enter the amount you wish to withdraw and press 'OK.'

Once the cash is disbursed, you will receive an SMS on your registered phone number. The withdrawn amount will be deducted from your available cash limit and added to your remaining balance. Make sure to check your available cash limit before withdrawing to avoid overdrawing.

ICICI Bank Cash Withdrawal Fees and Charges

Here’s a summary of the charges applicable when using the ICICI Bank credit card cash advance facility:

  • Cash Advance Fee: 2.5% of the withdrawn amount or Rs. 300 (whichever is higher).
  • Interest-Free Period: NIL
    (No interest-free period on cash withdrawals; interest is charged from the date of withdrawal.)
  • Cash Advance Limit: Communicated at the time of card delivery.
  • Minimum Repayment Amount: 5% of the outstanding amount or a minimum of Rs. 200.
  • Finance Charges (on revolving credit): 2.49% - 3.5% per month.

Advantages and Disadvantages of ICICI Cash Advance Facility

Advantages:

  • Can be used as an emergency fund: Useful in emergencies when quick cash is needed.
  • Instant cash without any balance: Withdraw cash even if your account balance is low.
  • No need to submit any documents: Simple and convenient with no paperwork involved.
  • No approval required from the bank: Instant cash withdrawal without needing prior approval.
  • More your credit limit, more will be your cash limit: Higher credit limit allows a larger cash advance.
  • Cash can be availed from any bank ATM: Accessible at any ATM, not just ICICI Bank ATMs.
  • If unused, the same can be used for card transactions: Any unused cash limit can still be used for purchases.

Disadvantages:

  • Interest will be levied from the date of withdrawal: Interest is charged immediately, unlike regular purchases.
  • Attracts a cash advance fee for every withdrawal: Cash withdrawals incur fees.
  • No reward points: Cash advances do not earn reward points.
  • No interest-free period: Unlike purchases, there's no grace period for cash advances.
ICICI Credit Cards

FAQs

The ICICI credit card cash advance option allows cardholders to withdraw cash directly from their credit card, functioning as a short-term loan for emergencies. You can withdraw cash at ICICI Bank ATMs or other bank ATMs without requiring additional approvals or documentation. However, this service comes with a cash advance fee and immediate interest charges, making it crucial to use this option judiciously.

The cash advance limit is a percentage of your credit card's total credit limit and varies by card type. For some cards, this feature may not be available during the first 180 days of issuance. Charges include:

  • Cash Advance Fee: 2.5% of the amount withdrawn or Rs. 300 (whichever is higher).
  • Interest: Rates ranging from 2.49% to 3.5% per month, depending on the card variant, accruing from the date of withdrawal.
  • No Interest-Free Period: Unlike regular transactions, cash advances begin incurring interest immediately.

Withdrawing cash from an ICICI credit card is straightforward and similar to using a debit card:

  1. Visit an ATM (ICICI or other banks).
  2. Insert your credit card and enter your PIN.
  3. Select "Cash Withdrawal" and input the desired amount.
  4. Confirm the transaction, and collect the cash.
    The amount is deducted from your cash advance limit, and a confirmation SMS is sent to your registered mobile number.

Advantages:

  • Instant access to cash without needing bank approval or paperwork.
  • Emergency funding when quick cash is needed.
  • Accessible at any bank ATM.

Disadvantages:

  • Attracts fees and immediate interest from the withdrawal date.
  • No interest-free period or reward points.
  • Can be expensive if not repaid promptly due to high interest rates.

Interest on cash advances is applied immediately after withdrawal and continues until the full amount is repaid. For most cards, interest rates range from 2.49% to 3.5% per month (29.88% to 42% annually). Unlike purchases, there is no grace period for cash advances. The monthly interest charges and cash advance fees are reflected in your next billing statement, making it crucial to repay promptly to minimize costs.

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You can access the following links to find detailed information and procedures related to managing your ICICI Bank Credit Card

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