BANKING AFFAIRS

Detailed explanation-1: -Credit card cash withdrawals are not eligible for the interest-free period. This means finance charges will be applicable on these transactions from the first day. An important point to note here is that credit card interest rates (finance charges) are quite high; they can range from 2.5% to 3.9% per month.

Detailed explanation-2: -When a person draws cash on a Credit Card, it attracts a fee which is called the Credit Card Cash Advance Fee. This fee, which is a percentage of the amount withdrawn, will appear in the next billing statement, along with the entire amount withdrawn and interest levied on the withdrawn amount.

Detailed explanation-3: -The rate at which the interest is charged is at the monthly percentage rate and will be levied from the date of transaction till the repayment is made in full. Banks typically charge a rate of interest of 2.5% to 3.5% per month on all cash advances.

Detailed explanation-4: -Interest Charges: Like every other purchase, interest is also applicable to cash withdrawal transactions made using a credit card. The only difference is that there is no interest-free period applicable to cash advances.

Detailed explanation-5: -There are some credit cards offered by some banks that allow users to withdraw cash up to a certain limit without any fees. For instance, Paytm Bank HDFC Credit Card offers 0 fees on cash withdrawal of up to Rs. 10000.