Credit Cards are one of the most popular financial tools in the market. They not only provide you with credit at the time of need but there are various other benefits of a credit card that most people are unaware of. One such benefit is cash withdrawal through a credit card. Yes, banks extend this facility to the card members wherein at the time of need, you can withdraw cash through your credit card. SBI is one of the major participants in the race of credit card issuers and offers a bundle of credit cards starting from basic credit cards to high-end credit cards, all offering a cash withdrawal facility to the card owners but the withdrawal limit is not the same for all SBI credit cards. It differs from card to card and comes with various other terms and conditions that the cardholders have to be aware of before availing of this facility.
Many SBI card owners are aware of the fact that they can withdraw cash using their credit card but little do they know that have to pay some extra charges and fees related to credit card cash withdrawal. Not just fees and charges, but each and every credit card comes with a predefined cash withdrawal limit beyond which the cardholder cannot withdraw cash through a credit card. The process of withdrawing cash through a credit card is very similar to the way in which you withdraw cash using a debit card. The only difference is that the cardholder has to pay some additional fees and charges on the amount that you have to pay for withdrawing cash using a credit card. By the end of this article, we will try our best to make you understand everything about SBI Credit Card Cash Withdrawal and also about all the processes, charges, and limits associated with the credit card. Keep reading the article to know more about this in detail-
SBI Credit Card Cash Withdrawal
As already stated, the cardholders who own SBI Credit Card can withdraw cash using their credit card. Though they have to pay certain extra charges such as cash advance fees, interest charges, etc., on the cash withdrawn, still they have this benefit available to them. But the cardholders should also know that the charges and limits for all the credit cards will not be the same throughout but will differ from one card to the other.
Cash Withdrawal Process
The process of withdrawing cash from a credit card is no different from that of a debit card. As you do with the credit card, in a similar manner you can withdraw cash from the credit card. All you have to do is visit the nearest ATM along with your credit card. You can follow the below-mentioned steps if you wish to withdraw cash using a credit card-
- Go to the nearest bank branch ATM.
- Insert the ‘Chip side’ of the credit card into the ATM.
- Select the language in which you would like to continue.
- Choose the account from which you would like to withdraw cash.
- Enter the amount that you want to withdraw.
- Now enter the credit card’s PIN.
- You can now collect your cash from the cash dispensing area.
Not only cash withdrawal, but you can perform various other actions through an ATM Machine like balance inquiry, regenerating or changing the PIN of your card, etc.
Cash Withdrawal Charges
Cash Withdrawal through a credit card comes with a set of charges such as cash advance charges, interest charges, etc that the cardholders need to pay while they pay the bill due on their credit card. An interesting and important thing here to note is that the cash withdrawal through a credit card does not come with an interest-free period. The cardholder will have to pay the interest amount starting from the day on which they withdrew cash from the credit card. You are not entitled to an interest-free period of 45-55 days which you generally get when you perform other transactions using your credit card. By this, we mean that interest charges will start accruing on your cash withdrawal from day one. Following are the types of charges that the SBI credit cardholders will have to pay if they withdraw cash using their credit cards-
Cash Advance Fee
Cash advance charges are a type of fee that credit cardholders have to pay for availing the cash withdrawal facility. These charges are charged by the credit card issuers. Generally, the fee is the percentage of the amount withdrawn using the credit card or a fixed amount that is predefined by the bank. The cash advance charges for all the credit cards are the same. You have to pay the higher of the two amounts, i.e., 2.5% of the amount withdrawn or Rs. 500. For example, if the cardholders withdraw an amount of Rs. 50,000 using a credit card, 2.5% of this amount would be Rs. 1,250. Therefore, he will have to pay a fee of Rs. 1,250 as cash advance charges. But if an individual withdraws an amount of Rs. 10,000 using his credit card, then, 2.5% of this amount will be just Rs. 250 but still, you will have to pay a minimum of Rs. 500 as the cash advance fee.
With interest charges, we mean the charges that you have to pay on the amount that you used via your credit card. In the normal course of using a credit card, the cardholders get an interest-free period before they make the payment on the credit card. But in the case where you withdraw cash using your credit card, you do not get any interest-free period, rather you have to pay the interest amount starting from the next day of the cash withdrawal day. The interest rate is generally the same for all the SBI Credit Cards except for a few premium credit cards. The credit cardholders will have to pay an interest of 3.5% per month.
Cash Advance Limit
Now that we know that we can withdraw cash from our credit cards but you have to be aware of the fact that you cannot withdraw an unlimited amount from your credit card. The credit card issuers have a certain predefined limit beyond which you can not withdraw cash from your credit card. The cash limit on the credit card is not equal to the credit limit of the credit card but instead is a small percentage of the credit limit. This credit limit is different for different individuals as this is based on an individual’s annual income, credit score, etc, therefore the cash limit will also vary from individual to individual.
For most SBI Credit Cards, the bank allows only 10% of the credit limit as the cash limit on the credit card. For example, if you have a credit card whose total credit limit is 6 Lakhs, therefore the cash advance limit would be 10% of Rs. 6 Lakhs, i.e., Rs. 60,000. The cardholders can withdraw only Rs. 60,000 using their credit card in a statement cycle.
A credit card is a great financial that helps credit cardholders in their time of need. Not just providing credit but you are also provided with some additional features such as a cash withdrawal facility. You can avail this facility in times of need. But the cardholder has to be sure that he uses this facility only if it is really urgent. We said this because you have to pay a hefty amount in the form of interest charges, and cash advance fees when you withdraw an amount using your credit card. Another important thing is that you should know that you cannot withdraw the whole amount but there is a specified limit up to which you can withdraw cash using your credit card. With SBI Cards, you can avail of 10% of the credit limit as a cash withdrawal limit.
We hope that with this article we have tried to make everything clear about the SBI Credit Card cash withdrawal process, limits, and charges. But if you still have any additional queries related to this, please feel free to ask us in the comments section below!