The cash withdrawal facility is an extended feature on a credit card provided by card issuers. The permissible limit of this facility is included within the credit limit. Depending on the lender, the threshold can range from 20% to 40% of the credit limit.

Users can withdraw cash from an ATM using a credit card when they require liquid cash on an immediate basis. This facility comes with a few advantages and must be utilised efficiently to avoid any disadvantages.

Advantages:

• The withdrawal facility provides instant cash to the cardholders anytime they require. By using the card at an ATM, borrowers can withdraw cash from anywhere. As ATMs are serviceable 24X7, card users can avail the cash facility immediately.
• Even though this facility can be considered as a loan, it doesn’t require any further documentation and approval from financiers. Individuals can simply swipe their card at ATMs to withdraw money.
• Interest-free period of up to 50 days with some card issuers is another highlight of this facility.
• Moreover, individuals who maintain a good credit history with timely repayment can increase their credit limit by asking their card issuers. Once the credit limit is increased, the cash limit will enhance eventually.

Disadvantages:

Improper utilisation of the facility can result in following cons.

• Non-payment of the credit acrd’s bill in time attracts interest at a high rate. Thus, you must ensure to pay at least the minimum amount due.
• In addition, cardholders, reward points on such transactions are not applicable. Thus, if cash is not needed urgently, cardholders can opt to make card transactions instead of withdrawal.

However, choosing cards like the Bajaj Finserv RBL Bank SuperCard that offers cash facility without any charge can enhance benefits. The facility becomes convenient and helpful in times of cash emergencies without any charge levy.