Credit cards have many features for their users, especially for purchases or keeping their money demand in view. A cash advance is one of those features and most ICICI Credit Cards come with a cash advance limit. This limit determines how much or what percentage you can withdraw with the help of your credit card.
However convenient this feature may be but is one of the most expensive features of a credit card. Be it an ICICI credit card or any other credit card, you will have to pay the interest rate and the finance charges, and the cash advance fee on the withdrawn amount. And there is no grace period for this type of withdrawal, these rates are levied from the moment of withdrawal.
What is a cash advance?
A cash advance is a financial term for the withdrawal of money from an ATM with the help of a credit card. It is called a cash advance because the money you are transacting is not your own. This cash advance you get is a loan given by your lender to you for your expenses. This cash advance is something that is limited by the lender.
Every card comes with a limit which is a card limit but it also comes with a cash advance limit. You can only withdraw cash up to a certain limit as given by your credit card issuer. You get notified of it with the card details.
Cash advance fee –
Every credit card has a different withdrawal fee as per decided by the issuers. Looking at the majority of credit cards issued by ICICI Bank, there is a cash advance fee of 2.5% of the withdrawn amount or Rs. 300 whichever is higher. The cash withdrawn fee also accrues an interest rate of 2.95% per month and or 41.7% annually, from the date of withdrawal till the date of return.
Withdrawal from non-ICICI ATMs might also result in higher fees as compared to the ones from ICICI ATMs.
Interest Charges on ICICI Cash Advance –
Apart from the cash advance fee, there are interest rates that are charged on the amount withdrawn till the very date it was paid in full. First, you pay the fee for every cash advance and charges are applied to your next month’s bill. Second, you pay the interest rate on the amount from the day of withdrawal till it is paid in full.
There can be different rates on different credit cards. Here are a few examples –
Instant Platinum, Instant Gold, and Fixed Deposit Instant Credit Cards –
Monthly Rate – 2.49%
Annual Rate – 29.88%
All other ICICI Credit Cards except the above-mentioned ones –
Monthly Rate – 3.40%
Annual Rate – 40.80%
Jet Airways ICICI Bank Credit Card –
Monthly Rate – 3.50%
Annual Rate – 42%
4.In default cases –
Monthly Rate – 3.5% (Maximum Interest Rate)
Annual Rate – 42%
These charges are at the sole discretion of the bank and only the bank has the right to change the interest rates at any time for all of its credit cards or specific credit cards.
Every ICICI credit card allows you to withdraw cash to a certain limit from your credit card at any ATM. However, there are charges levied on the withdrawn amount. This is quite an expensive feature but quite a handy one. Although the charges are different from card to the card they can be changed by the bank as per their policies.
If you are thinking about a credit card, then having a thorough look and knowledge about every other credit card’s interest rates will help you find the best pick for you.