Navigating Cash Advance Rates In India
Sometimes you need quick cash and remember that your credit card has a cash advance option, so you start looking for the nearest ATM. If you find yourself in an emergency situation, then maybe this is necessary, but as you will see for everyday cash needs you are going to want to avoid this since credit card companies prey on the ease of these cash advances by charging extreme interest rates. Not only will you have to pay a 2% or 3% convenience fee, but you also have to pay it back at a higher than normal interest rate that varies by bank. We took a look at some of the most popular cards with a cash advance option so you could see how they stack up.
Popular Cards In India Cash Advance Rates:
SBI Cards, in General
A transaction fee is charged on SBI card cash advances and added to the next bill. A transaction fee of 2.5% or Rs. 300, whichever is higher at India ATMs, and 3% or Rs. 300, whichever is higher when traveling abroad. Cash advances also carry a finance charge equal to charges on revolving credit from the date of advance until you have paid it off.
HDFC Bank Credit Card
A transaction fee of 2.5% (Minimum Rs 500) (but not including the Infinia Credit card) is charged. All cash advances also carry a finance charge equal to charges on revolving credit from the date of withdrawal until paid in full.
ICICI Bank Credit Card
A transaction fee of 2.5% with a minimum of Rs 250 for eBOR and ICICI Bank ATMs, Rs 350 for other ATMs is charged on the amount withdrawn and reflected in the next statement. All cash advances from ICICI add a finance charge of 2.95% per month (a huge APR of 41.75% per annum) from the date of withdrawal until paid in full.
RBL Bank Credit Card
RBL charges a flat fee of 2.5% of the cash amount with a minimum of Rs 100
Axis Bank Credit Card
Axis Bank charges 2.5% with a minimum of Rs 250 of the cash advance,
Kotak Mahindra Bank Credit Card
Kotak Mahindra Bank charges a flat Rs 300 as cash advance fee for every Rs 10,000 withdrawn through most of its cards.
Citi Bank Credit Card
Citibank charges 2.5% on the billed amount withdrawn, with a minimum of Rs 500.
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