Withdrawing cash from an ATM with a credit card, which is charged a fee and interest from day one.
Banks charge a cash advance fee, often 2.5% of the amount with a minimum of about ₹500, plus 18% GST. Interest starts on the day of withdrawal at the card's monthly rate, with no interest-free period.
Only part of your credit limit can be drawn as cash. A personal loan or an overdraft is almost always cheaper.
₹10,000 taken out costs about ₹590 in fee and GST, plus roughly ₹350 interest for one month.
Short reads that explain how it works before you decide.
GuidesNo-Cost EMI: What It Really Costs You, With a Worked ExampleNo-cost EMI is not a trick, but it is rarely free. Here is where the money goes: the discount you give up, the processing fee, and GST on the interest, worked out on a Rs 30,000 phone.Read the guide →Automatically organise your spending, track expenses and understand where your money goes.
