How to Withdraw Cash from HDFC Credit Card

When you’re in need of instant cash and don’t have other options available, a credit card cash advance can be a convenient solution. HDFC Credit Card Cash Withdrawal allows you to access cash quickly through an ATM or bank counter. Nevertheless, knowing the procedure, the various costs that are being taken, as well as the limits may hold you in good stead when deciding whether or not to use this service.

What is HDFC Credit Card Cash Withdrawal?

HDFC Credit Card Cash Withdrawal, also known as a cash advance, allows cardholders to withdraw money directly from an ATM or over the counter at a bank branch. You can use your credit card as an ATM and gain immediate cash access. In case of emergency, this could be of significant help when one doesn't have cash deposited in the bank account.

Unlike regular purchases made using your HDFC credit card, a credit card cash advance carries different terms and conditions, such as higher interest rates and additional fees. This makes it essential to understand how this process works before deciding to use it.

Steps On How to Withdraw Money from a Credit Card

The way cash withdrawal process takes place is very simple for an HDFC credit card. Here's how you can get started:

1. Locate an ATM or Bank Branch
   You can withdraw cash from your HDFC credit card either through an HDFC ATM cash withdrawal charges that supports credit card cash withdrawal. If you are withdrawing from an HDFC bank branch, you can do so over the counter.
2. Insert Your Credit Card
   At the ATM, insert your HDFC credit card and select the option for a cash withdrawal. You will be asked to enter your PIN.
3. Enter the Withdrawal Amount
   After entering your PIN, input the amount of cash you wish to withdraw. Be mindful of the HDFC cash withdrawal limit, which may vary depending on the card type and your credit limit.
4. Collect the Cash and Receipt
   Once the transaction is complete, the machine will dispense your requested cash. Ensure you take the receipt for your records and keep your HDFC credit card safe.
5. Repayment
   Remember that HDFC credit card cash withdrawal is essentially a loan. You’ll be required to repay the withdrawn amount along with applicable interest and charges. It is essential to pay the amount within the stipulated time to avoid excessive interest rates and penalties.

HDFC Credit Card Cash Withdrawal Charges & Fees

While HDFC credit card cash advance provides convenience, it comes with certain charges and fees that you should be aware of:

1. Cash Withdrawal Fees
   Cash Withdrawal Charges at HDFC ATMs: The charges for withdrawing money from an HDFC ATM are considerably lower than from a third-party ATM.
   Cash Withdrawal Charges from Other ATMs: Withdrawing cash from other ATMs may incur an extra charge. The additional charge would vary from Rs. 100 to Rs. 300 per transaction depending on the respective bank's policy.
2. Cash Advance Fee
   When you withdraw cash, HDFC credit card cash advance charges are applicable. This fee is generally between 2.5% to 3% of the withdrawn amount, with a minimum fee of Rs. 300.
3. Interest Rates on Cash Advances
   Interest rates on HDFC credit card cash advances tend to be higher than regular purchases. The interest on a cash advance starts accumulating immediately after the transaction, without any grace period. The HDFC credit card interest rates on cash advances can range between 3.3% and 3.6% per month, which translates to an annual percentage rate (APR) of 40%-45%.
4. Late Payment Charges
   If you do not repay your HDFC credit card cash advance on time, you will incur late payment fees, and the interest will keep accumulating. Additionally, your credit score may be affected if payments are delayed.
5. Other Fees
   Penalties for Going Over Limit: When crossing one's withdrawal limit at an HDFC ATM, an overlimit fee will be charged.
   Overseas Transaction Fees: Foreign transaction charges apply for withdrawing cash outside the country.

Limits on Cash Withdrawal from HDFC Credit Cards

There are specific limits associated with withdrawing cash from your HDFC credit card, which vary based on the card type, your credit limit, and other factors:

1. Cash Withdrawal Limit
   The HDFC cash withdrawal limit is usually a percentage of your total credit limit. This is typically between 30% to 50%. For example, if your total credit limit is Rs. 1,00,000, your cash withdrawal limit may range from Rs. 30,000 to Rs. 50,000. However, this can vary depending on the specific card you hold and the terms set by HDFC Bank.
2. ATM Withdrawal Limits
   ATM withdrawal limits can also be lower than the overall cash withdrawal limit. If you are withdrawing cash from an HDFC ATM, the limit may be Rs. 20,000 per day or more, depending on the card.
3. Over-the-Counter Withdrawal Limits
   When withdrawing cash over the counter at an HDFC branch, you may face a different set of limits, which can be higher than ATM withdrawal limits. However, this may require additional documentation or identification.

Pros and Cons of HDFC Credit Card Cash Advance

While a HDFC credit card cash advance can be useful in emergencies, it has its advantages and disadvantages. Let’s take a closer look:

HDFC Bank Credit Card Benefits

• Fast Cash Access: This is an immediate panacea for emergencies that need cash fast.
• Wide Availability: In fact, cash advances are available easily in many ATMs and bank branches, thereby making cash advance very convenient.
• Flexible Repayment: The HDFC cash advance repayment can be over time similar to what is done on normal credit card repayment, with a possibility of making installment payments.

Cons

• High Charges: The cash advance charges and credit card ATM withdrawal fees can double up quickly. It is an expensive cash alternative.
• Immediate Interest: The only difference is that on cash withdrawal, interest would start right after withdrawal, unlike the regular purchases you do on a credit card.
• Short-Term Fix: Cash advances are actually short-term loans built with immediate cost penalties exceeding many other types of loans.

Best Alternatives to Cash Withdrawal from HDFC Credit Card

While HDFC credit card cash advance provides a quick solution, there are other alternatives that might be more cost-effective:

1. Personal Loan
   A personal loan from a bank may offer a lower interest rate and flexible repayment options compared to a credit card cash advance. It’s worth considering if you need a larger sum of money.
2. Line of Credit
   If you have a line of credit or a personal line of credit with your bank, it can be a good alternative. Interest rates are typically lower, and there may be more flexibility in repayment.
3. Borrow from Friends or Family
   If you’re in a temporary financial bind, borrowing from family or friends can be a cost-effective alternative with no interest or fees.
4. Debit Card Withdrawal
   If you have a sufficient balance in your bank account, withdrawing cash from your debit card might be a more affordable option. Debit card withdrawals usually don’t come with high fees or interest rates.

Conclusion

For your immediate cash needs, cash withdrawal on HDFC credit card helps solve your problem in the short run. But familiarize yourself with the fees, commissions, and withdrawal limits applicable in your case before you act. Weigh the pros and the cons and look for an alternative if possible. Having a look into the nitty-gritty of HDFC credit card cash withdrawal will help you make an informed decision.

If you need further assistance in relation to HDFC credit card cash withdrawal or cash advances, kindly contact HDFC customer support for any queries or more information.