Overview:
This article explains how to withdraw cash from a credit card through ATMs and bank branches, along with the associated limits, charges, and interest rates. It also covers the benefits of cash advances, important costs to consider, and smarter alternatives to avoid high fees.
Need urgent cash and wondering how to withdraw money from a credit card? A credit card cash advance lets you withdraw cash from an ATM or bank branch. While convenient, understanding how to withdraw money from a credit card helps you weigh the costs. This guide explains how to withdraw money from a credit card, the process, limits, charges, and smarter alternatives with your Airtel Axis Bank Credit Card.
What Is Cash Withdrawal from a Credit Card?
A cash withdrawal from a credit card, also called a cash advance, allows you to use your card to withdraw cash, up to a set limit. Unlike a purchase, the amount is not interest-free; interest and a cash advance fee apply immediately. Knowing how to withdraw money from a credit card can be a lifesaver in emergencies when digital payments aren’t possible.
How to Withdraw Cash from a Credit Card
There are two primary ways to withdraw money from a credit card: via an ATM or by visiting a bank branch. Each method is straightforward, and once you learn how to withdraw money from a credit card correctly, you avoid unnecessary hiccups.
Withdraw Cash Using an ATM
- Locate an ATM that accepts your card network (Visa, Mastercard, or RuPay).
- Insert your credit card and enter your PIN.
- Select the “Cash Withdrawal” or “Cash Advance” option.
- Enter the amount within your cash limit.
- Collect the cash and receipt.
Remember, when you use how to withdraw money from a credit card at an ATM, interest starts right away, and a cash advance from credit card fee will hit your next statement. Your credit card ATM withdrawal charges may include a flat per-transaction fee plus a percentage.
Withdraw Cash Through a Bank Branch
You can also withdraw cash from a credit card by visiting the card-issuing bank’s branch. Carry your credit card and a valid photo ID. Fill out a cash advance slip, specify the amount, and hand it to the teller. The bank processes the transaction after verifying details. This method may have higher credit card cash withdrawal charges than an ATM. Before you decide how to withdraw money from a credit card at a branch, confirm daily limits with your bank.
Benefits of Cash Withdrawal from a Credit Card
Here’s why knowing how to withdraw money from a credit card can be valuable:
- Immediate liquidity: Get cash 24/7 without waiting for loan approvals.
- No paperwork: Unlike a personal loan, all you need is just your card and PIN.
- Short-term emergency bridge: Perfect when you can’t pay digitally.
- Flexible repayment: Repay later, though interest applies from day one.
- Can improve your cash limit with disciplined use.
Once you’ve learned how to withdraw money from a credit card, you gain a backup funding source for genuine needs.
Credit Card Cash Withdrawal Limit Explained
The cash withdrawal limit from a credit card is a subset of your total credit limit. Typically, banks set it at 30–40% of your overall credit limit. For example, if your credit card has a limit of ₹2,00,000, you may be able to withdraw up to ₹60,000–₹80,000 as cash. This limit varies by issuer and card type. The Airtel Axis Bank Credit Card offers a credit limit up to ₹5,00,000, so your cash withdrawal limit could be substantial. Check your card’s specific terms in the Airtel App. Knowing how to withdraw money from a credit card within this limit prevents declined transactions.
Credit Card Cash Withdrawal Charges and Fees
When you perform a cash withdrawal from a credit card, you face two main charges: a cash advance fee and interest from day one. Here’s a breakdown of typical fees:
| Fee Component | Typical Charges |
| Cash Advance Fee | 2.5% – 3.5% of the withdrawn amount (minimum ₹250–₹500) |
| Per-Transaction Fee (if separate) | ₹100 – ₹300 |
| GST | 18% on fees |
| Interest Rate | 2.5% – 3.5% per month (30% – 42% annually) |
These credit card cash withdrawal charges get added to your outstanding balance. If you make multiple withdrawals, each transaction incurs its own fee. The exact fees for withdrawing cash from a credit card depend on your card’s terms. Understanding these costs before you decide how to withdraw money from a credit card saves you from surprises.
How Much Interest Do I Have to Pay After I Withdraw Money from my Credit Card?
Interest on credit card cash withdrawal starts accruing immediately; there is no grace period. The credit card cash withdrawal interest rate varies by bank. Here’s a comparison as of April 2026 (source: respective bank websites):
| Bank | Monthly Interest Rate | Annual Interest Rate |
| HDFC Bank Credit Card | 1.99% – 3.5% | 23.88% – 42% |
| Axis Bank Credit Card | 2.95% – 3.5% | 35.4% – 42% |
| SBI Credit Card | Up to 3.35% | Up to 40.2% |
| Citi Bank Credit Card | 3.1% – 3.5% | 37.2% – 42% |
The interest on withdrawal of cash from a credit card is applied daily from the transaction date until you repay in full. Whether you withdraw money from your credit card once or multiple times, the interest clock starts immediately. To minimise cost, repay the cash advance as soon as possible.
Use Airtel App to Avoid Additional Charges
Frequent small cash needs can add up in fees. Instead, rely on the Airtel App for digital payments, recharges, and utility bills; all without extra charges. The app offers a secure mobile wallet, UPI integration, and instant online payment capabilities. For bigger expenses, consider the Airtel Axis Bank Credit Card, which offers up to 25% cashback on recharges and bill payments, unlimited 1% cashback on other spends, and a credit limit up to ₹5,00,000. By using the card for purchases instead of cash advances, you avoid cash withdrawal fees and earn rewards. Download the Airtel App to manage your card, pay bills, and track spending.
FAQs
Can I withdraw cash from any ATM using my credit card?
Most credit cards work on Visa, Mastercard, or RuPay networks, so you can withdraw from any ATM displaying those logos. However, some banks restrict cash advances to their own ATMs; check with your issuer.
Does cash withdrawal reduce my available credit limit?
Yes, the amount you withdraw reduces your available cash advance limit, which is a part of your overall credit card limit. It does not affect your purchase credit limit directly.
Is there an interest-free period on credit card cash withdrawals?
No, unlike purchases, there is no grace period. Interest on a cash advance from a credit card accrues daily from the transaction date until full repayment.
Can I convert a credit card cash withdrawal into EMI?
Some banks allow you to convert a cash withdrawal into EMIs after the transaction, but this comes with additional processing fees and interest. Check your credit card eligibility for such a facility.
Does cash withdrawal affect my credit score?
Directly, no. But if high utilisation or missed payments on the cash advance lead to a large outstanding balance, your credit score could be impacted.
