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Credit card cash withdrawal charges: Fees for SBI, HDFC, ICICI and Axis in 2026

Withdrawing cash from a credit card costs a one-time fee of 2.5% to 3% of the amount, with a minimum of ₹500 plus GST. Interest starts from the minute you take the cash out, as there is no interest-free period for cash. We check the latest fees for SBI, HDFC, ICICI and Axis.

By Qrates research desk · 2026-11-10

The Qrates directory shows that most Indian banks now charge a minimum of ₹500 plus GST even for a small ₹1,000 withdrawal (Qrates directory). This means taking a small amount of cash can cost you more in fees than the value of the cash itself. Before making such transactions, it is helpful to understand what a credit card key fact statement shows under RBI rules to ensure you are aware of all hidden costs.

Quick answer: What does it cost to withdraw cash?

Withdrawing cash from a credit card is one of the most expensive ways to borrow money in India. You pay two different types of costs the moment the ATM dispenses the notes.

The first cost is a one-time cash advance fee. Most banks charge 2.5% of the amount you withdraw. However, they also set a minimum fee, which is usually ₹500. If you withdraw ₹1,000, you do not pay ₹25. You pay the minimum of ₹500.

The second cost is the interest, also called finance charges. Unlike shopping at a mall, cash withdrawals have no interest-free grace period. Interest starts at 3.5% to 4% per month from the very minute you take the cash out.

Finally, you must pay 18% GST on both the one-time fee and the interest charges. This tax is mandatory for all banking services in India (Central Tax Notification 12/2017).

The two parts of credit card cash withdrawal charges

The Cash Advance Fee

The cash advance fee is a transaction charge for using the ATM with a credit card. It is calculated as a percentage of the withdrawal amount or a flat minimum amount, whichever is higher.

For most retail cards in 2026, this fee is 2.5% or ₹500. If you withdraw ₹30,000, the 2.5% fee would be ₹750. Since ₹750 is higher than ₹500, you pay ₹750. If you withdraw ₹2,000, the 2.5% fee is only ₹50, so the bank charges you the ₹500 minimum instead.

The Finance Charges (Interest)

Finance charges are the daily interest you pay until the full amount is cleared. These rates are much higher than home loans or personal loans. Most cards charge between 42% and 48% per year.

The interest is calculated on a daily basis. If you take cash on the 1st of the month and pay it back on the 10th, you pay 10 days of interest. If you wait until your bill is due 30 days later, you pay 30 days of interest.

The October 2026 RBI Bank Rate hike has pushed some banks to increase their penal interest rates (RBI Monetary Policy Statement, October 2026). Penal interest is an extra charge added if you fail to pay at least the Minimum Amount Due on your statement.

How the math works: A ₹10,000 cash withdrawal example

To understand the real cost, look at what happens to a ₹10,000 withdrawal over 30 days. This example uses a standard 2.5% fee and 3.75% monthly interest.

Item Calculation Amount
Withdrawal Amount Principal ₹10,000.00
Cash Advance Fee 2.5% of ₹10,000 (Min ₹500) ₹500.00
GST on Fee 18% of ₹500 ₹90.00
Interest (30 days) 3.75% of ₹10,000 ₹375.00
GST on Interest 18% of ₹375 ₹67.50
Total Cost Fee + Interest + GST ₹1,032.50
Total Owed Principal + Cost ₹11,032.50

By the time your bill arrives 30 days later, your ₹10,000 withdrawal has cost you ₹11,032.50. This assumes you pay the full amount on the first due date. If you only pay the minimum amount, the remaining balance continues to attract interest at 45% per year, compounded daily.

Why cash withdrawals have no interest-free period

Regular credit card spends on apps or in shops get a 20-50 day grace period. If you pay the full bill by the due date, the bank charges zero interest. This does not apply to cash.

Cash withdrawals are treated as an immediate loan by the bank. The RBI Master Directions on Credit Cards (2022) allow banks to charge interest from the date of transaction for cash advances. The bank views cash as a higher risk because they cannot track how it is spent.

The interest clock starts at the ATM. Paying your bill early is the only way to reduce the total interest paid on cash. Even if you pay the bill one day after the withdrawal, you will still see a small interest charge on your next statement.

Charges for SBI, HDFC, ICICI and Axis cards in 2026

Fees vary slightly between banks and card variants. You can check the specific interest rate of your card on the Qrates credit cards directory. Before choosing a card, you might want to compare lifetime free vs paid credit cards in India: break-even math for 2026 to see if the annual fees are worth the benefits.

SBI Credit Card cash charges

SBI Card charges 2.5% or ₹500, whichever is higher, as a transaction fee (SBI Card MITC, 2026). This applies to all domestic and international ATMs. You can see the specific terms for your variant on the SBI Card Qrates page.

HDFC Bank credit card cash charges

HDFC Bank charges a cash advance fee of 2.5% or ₹500 plus GST (HDFC Bank MITC, 2026). Interest rates for most retail cards reach up to 3.75% per month. Note that UPI-ATM withdrawals now also count toward your monthly transaction limits (HDFC Bank, 2026). Details are available on the HDFC Bank credit cards page.

ICICI Bank credit card cash charges

ICICI Bank maintains a standard 2.5% fee with a ₹500 minimum (ICICI Bank Service Charges, 2026). Premium cards like the Emeralde may have different interest structures, but the cash fee remains a standard cost for most users. Check your card details on the ICICI Bank credit cards page.

Axis Bank credit card cash charges

Axis Bank charges 2.5% or a minimum of ₹500 for cash withdrawals (Axis Bank MITC, 2026). Axis Bank recently updated its payment adjustment order. They now prioritize paying off other balances, like shopping or EMI, before the cash advance balance (Axis Bank, 2026). This means your high-interest cash debt might stay on your account longer even if you make a partial payment. If you are considering an upgrade, you can check Axis Primus Credit Card vs HDFC Bank Infinia Credit Card: Comparing Fees and Rewards in 2026 to see how different cards handle these terms.

What to check in your own Most Important Terms and Conditions (MITC)

Every credit card comes with an MITC document. It lists the exact rules for your specific card.

  1. Find your Cash Limit: This is usually only 20% to 40% of your total credit limit. If your total limit is ₹1 lakh, your cash limit might be only ₹20,000.
  2. Look for the Minimum Amount Due: Cash withdrawals often make this figure jump. Banks may require you to pay a larger portion of the cash balance immediately.
  3. Check the Monthly Percentage Rate (MPR): This is the exact monthly interest applied to cash. It is often hidden in the fine print under "Finance Charges".
  4. Verify the Cash Processing Fee: Some cards charge a small extra processing fee separate from the cash advance fee.

Common mistakes when using a credit card at an ATM

Many users treat a credit card like a debit card at an ATM. This leads to unexpected debt.

Withdrawing small amounts Taking ₹500 twice costs you ₹1,000 in fees because of the ₹500 minimum per transaction. Taking ₹1,000 once costs only ₹500 in fees. If you must take cash, take the full amount you need in one go.

Paying only the minimum This is the fastest way to enter a debt trap. Because the interest rate is 45% per year, paying only 5% of the bill means your debt barely decreases. The interest on the remaining 95% will be added to your next bill.

Ignoring the GST ATM screens often show the fee but not the tax. Every fee and interest rupee attracts an extra 18% GST. This is a government tax that the bank cannot waive.

Using credit instead of other loans A personal loan or a bank overdraft often costs 12% to 15% per year. A credit card cash withdrawal costs nearly 45% per year plus a heavy entry fee. Use the credit card only for emergencies where no other option exists. If you travel frequently, remember that forex markup on credit cards in India: fees, GST and how to avoid them is another cost category that can surprise you if you are not careful.

FAQs

Can I withdraw cash from a credit card without charges?

No, almost all Indian credit cards charge both a one-time fee and interest from day one. Some premium cards may waive the one-time fee, but the interest charges still apply immediately.

Does cash withdrawal affect my credit score?

The withdrawal itself does not lower your score. However, it increases your credit utilization ratio. If you miss the high payment or only pay the minimum, your credit score will drop significantly.

How can I see my cash limit?

Your cash limit is listed on your monthly statement. You can also find it in your bank's mobile app under the "Manage Card Limits" or "Card Controls" section.

Is the interest rate for cash different from shopping?

The interest rate is usually the same as the rate for shopping balances. The difference is that shopping has an interest-free period of up to 50 days, while cash has zero interest-free days.

The short version

  • Every cash withdrawal costs a minimum fee of ₹500 plus 18% GST.
  • Interest of 3.5% to 4% per month starts the moment you take the cash.
  • There is no interest-free grace period for cash advances.
  • Banks like SBI, HDFC, ICICI, and Axis all charge roughly 2.5% or ₹500 as a base fee.
  • Axis Bank prioritizes paying off other debts before the cash balance, which can increase your interest cost.

Sources

Disclaimer

Qrates is an information directory. It takes no commission from any company listed and does not recommend products. Figures are taken from the sources named and dated, and they change; check the company's own page before you decide. This is not investment, credit, insurance or tax advice for your situation.

Questions people ask

Can I withdraw cash from a credit card without charges?

No, almost all Indian credit cards charge both a one-time fee and interest from day one. Some premium cards may waive the one-time fee, but the interest charges still apply immediately.

Does cash withdrawal affect my credit score?

The withdrawal itself does not lower your score. However, it increases your credit utilization ratio. If you miss the high payment or only pay the minimum, your credit score will drop significantly.

How can I see my cash limit?

Your cash limit is listed on your monthly statement. You can also find it in your bank's mobile app under the "Manage Card Limits" or "Card Controls" section.

Is the interest rate for cash different from shopping?

The interest rate is usually the same as the rate for shopping balances. The difference is that shopping has an interest-free period of up to 50 days, while cash has zero interest-free days.

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