A credit card cash advance allows you to withdraw money from an ATM using your credit card, similar to a debit card. (HDFC Credit Card ATM Withdrawal Charges for ₹10,000) However, unlike debit transactions, this is essentially a short-term loan with associated fees and interest charges.
HDFC Credit Card ATM Withdrawal Charges for ₹10,000
Key Points Related To This Article
While it’s generally advisable to avoid cash advances due to high costs, they can be a lifesaver in emergencies where other funds are not accessible.
HDFC Bank Cash Advance Charges
Cash Advance Fee
HDFC Bank levies a cash advance fee of 2.5% of the withdrawn amount or Rs. 500, whichever is higher. For a ₹10,000 withdrawal, this equates to ₹500.
Finance Charges (Interest Rates)
Interest on cash advances accrues instantly at a monthly rate ranging from 1.99% to 3.5%, translating to an annual rate of 23.88% to 42%. There’s no interest-free period for cash advances.
ATM Transaction Fees
Beyond the cash advance fee, ATM transaction fees may apply, especially if you exceed the free transaction limit. As of May 1, 2025, the charge beyond the free limit is ₹23 plus taxes per transaction.
Calculating Charges for a ₹10,000 Withdrawal
Cash Advance Fee: 2.5% of ₹10,000 = ₹250; however, since the minimum is ₹500, you’ll be charged ₹500.
Interest Charges: Considering a 3% monthly rate and repayment after 30 days, interest would be approximately ₹300.
ATM Transaction Fee: ₹23 plus taxes (if applicable).
Total cost estimate
Combining the above, withdrawal of ₹10,000 could cost you around ₹823 or more, depending on the exact interest rate and any additional taxes.
Cash Advance Limit
Typically, HDFC Bank permits cash withdrawals up to 40% of your total credit limit. For example, if your credit limit is ₹50,000, your cash advance limit would be ₹20,000.
Interest-Free Period
Unlike regular credit card payments, cash advances do not have an interest-free period. Interest starts accruing from the day of the transaction.
Minimum Amount Due
HDFC Bank requires a minimum payment of 5% of the outstanding amount or Rs.200, whichever is higher.
Tips to Manage Cash Withdrawals
When to Use Cash Advances
Reserve cash advances for genuine emergencies where no other financial alternatives are available.
How to Minimize Charges
Repay Promptly:The sooner you repay, the less interest you’ll accrue.
Limit Withdrawal Amounts: Only withdraw what you absolutely need.
Avoid Frequent Withdrawals: Every transaction incurs fees; consolidate needs into a single withdrawal if possible.
Alternatives to Cash Withdrawals “HDFC Credit Card ATM Withdrawal Charges for ₹10,000”
Personal Loans
Personal loans often have lower interest rates compared to credit card cash advances and can be a more affordable choice for larger, planned expenses.
EMI on Credit Card
Converting large purchases into Equated Monthly Installments (EMI) can be a cost-effective alternative, offering structured repayments with lower interest rates.
While HDFC credit card cash withdrawals offer quick access to funds, they come with considerable costs. Understanding the associated fees and planning accordingly can help you make informed financial decisions. Always consider options and use cash advances judiciously.
FAQs
Q1: Can I withdraw cash from any ATM using my HDFC credit card?
Yes, you can withdraw cash from any ATM that accepts HDFC credit cards. However, extra charges may apply for non-HDFC ATMs.
Q2: Is there a daily limit for cash withdrawals on HDFC credit cards?
Yes, the cash advance limit is typical 40% of your total credit limit. Daily limits may also apply based on ATM policies.
Q3: Do cash withdrawals impact my credit score?
Frequent cash advances can indicate financial distress and may negatively affect your credit score.
Q4: Are there any cards that waive cash advance charges?
Most credit cards, including HDFC, charge fees for cash advances. It’s best to check with the bank for any promotional offers or specific card advantages.
Q5: How soon should I reimburse a cash advance to minimize charges?
Ideally, repay the amount as soon as possible, preferably before your next billing cycle, to reduce interest accumulation.