While it is widely known that credit cards come with interest and fees, withdrawing cash using a credit card—known as a cash advance—can be particularly expensive. Each time you withdraw cash, a cash advance fee is charged, typically ranging between 2.5% to 3% of the transaction amount, with a minimum fee of Rs 250 to Rs 500. This fee is reflected in your billing statement. In addition to this, finance charges apply from the date of the cash withdrawal until the full repayment is made. Unlike regular credit card purchases, which may have an interest-free period, cash withdrawals attract interest immediately, making it a costly option best used only in emergencies.
