If you have an HDFC credit card, the bank provides you with a cash advance feature. This cash advance facility allows you to withdraw cash from an ATM. While this lets you manage urgent cash requirements, there are some charges associated with it.  

Let’s understand the limits and withdrawal charges. 

HDFC Credit Card Limit for Cash Withdrawal 

The credit card cash limit for an HDFC Bank credit card is the maximum amount of cash you can withdraw. This limit is a part of your total credit limit, not extra money. It's usually a percentage of your total limit. 

For example, if your credit limit is Rs. 1 lakh and your cash limit is 20%, you can only withdraw Rs. 20,000 as cash. Use the remaining amount for other purchases. 

Most HDFC Bank credit cards have a 40% cash limit. Your cash limit depends on your card type. 

Cash Withdrawal Charges On HDFC Credit Cards 

You pay a fee for every cash withdrawal. The bank bills you for this fee in the next month's statement. 

HDFC Bank charges a fee of 2.5% of the withdrawal amount or Rs. 500, whichever is higher. For example, if you withdraw Rs. 40,000, you pay a Rs. 1,000 fee (2.5% of Rs. 40,000). If you withdraw Rs. 5,000, you pay a Rs. 500 fee. 

The bank decides the fee and can change it. You pay this fee from the withdrawal date until you repay the loan. 

Interest on Cash Withdrawal Using HDFC Credit Cards 

You pay interest on credit card cash withdrawals. This interest is similar to your regular credit card interest. The bank charges you interest from the day you withdraw cash until you pay it back.  

The interest rate ranges from 1.99% to 3.49% each month. If you're late to pay, the rate jumps to 3.50%. The bank can change these rates. Remember, this interest is extra, in addition to the cash withdrawal fee. 

Factors to Consider While Withdrawing Cash Using HDFC Credit Cards 

  • Cash advance fee: You'll be charged a fee for every cash advance. This fee is usually 2.5% to 3% of the amount you take, with a minimum of Rs. 250 to Rs. 500. You'll find this fee mentioned on your bill. 

  • Finance charges: You pay interest on cash withdrawals, just like on regular purchases. This interest starts from the day you withdraw cash and continues until you pay it back. 

  • Interest rate: The interest rate for cash withdrawals is usually 2.5% to 3.5% per month. HDFC Bank has lower rates, from 1.99% to 3.5% per month. Unlike regular purchases, interest starts immediately with no interest-free period. 

  • ATM fee: You can use your credit card at an ATM up to 5 times a month for free. After that, you pay a fee. This fee used to be Rs. 15 but is now Rs. 17 per cash withdrawal. For other ATM usage, the fee is Rs. 6 (it used to be Rs. 5). You pay these fees on your credit card bill. 

  • Late Payment Fee: You pay a late fee if you don't pay your full bill on time. This fee can be 15% to 30% of what you owe. HDFC Bank has lower late fees than other banks.  

  • Credit Score: Getting cash from your credit card might not hurt your credit score, but the high fees can make your bill bigger. If you don't pay the minimum amount, your credit score will go down. Always pay on time. 

  • Reward Points: Many banks give rewards for using credit cards. You can get discounts, gifts, or other things. Banks have programs to encourage you to use your card for eating out, travelling, and shopping. You accumulate points for these activities, which can be redeemed for prizes. But you usually don't earn points on cash withdrawals. Only get cash if you really need it. 

To Sum Up, 

Withdrawing cash from your HDFC credit card can be costly. You face multiple charges, including a cash advance fee, interest, and ATM fees. While it's a convenient option for emergencies, it's generally advisable to avoid cash withdrawals unless absolutely necessary.