Withdrawing money from your SBI credit card can come in handy during emergencies or when you need quick cash. While most people use their credit cards primarily for purchases, SBI also allows you to withdraw cash through its various online channels. This process is known as a “cash advance,” and it’s easy to complete online with a few simple steps. In this guide, we will explain how to withdraw money from your SBI Credit Card online, the charges involved, and how to make the process smoother.
Steps to Withdraw Money from SBI Credit Card Online
Follow these simple steps to withdraw cash from your SBI credit card:
- Login to SBI Online Banking
- Visit the official SBI online banking website https://www.onlinesbi.com or open the SBI mobile app on your phone.
- Log in using your user ID and password. If you haven’t registered for online banking yet, you will need to set it up by following the instructions on the website or app.
- Select ‘Credit Card’ Option
- Once you’re logged into your account, go to the ‘Payments/Transfers’ section and select ‘Credit Card’ under the ‘Transfer to Other Bank’ option.
- Choose ‘Cash Withdrawal’ Option
- In the Credit Card section, look for the option to withdraw cash. This option allows you to transfer money from your credit card into your linked bank account.
- Enter the Withdrawal Amount
- Enter the amount you wish to withdraw from your SBI Credit Card. Make sure you stay within your credit limit to avoid exceeding the available balance.
- Choose Your Linked Bank Account
- Select the bank account where you want the money to be transferred. This should be the account that is linked to your SBI Credit Card.
- Confirm Transaction
- After entering all the details, review the information to ensure everything is correct. Confirm the withdrawal request, and the amount will be transferred to your bank account.
- Receive Cash in Your Bank Account
- The cash will usually be transferred to your linked bank account within 2-3 working days, depending on the transaction processing times.
Charges for Withdrawing Money from SBI Credit Card
Before you proceed with a cash withdrawal from your SBI Credit Card, it’s essential to be aware of the charges:
- Cash Advance Fee: SBI charges a cash advance fee, typically around 2.5% to 3% of the withdrawn amount. This fee may vary based on the type of credit card you have.
- Interest on Cash Withdrawal: Interest is charged immediately on cash advances, unlike regular purchases that have a grace period. The interest rate can be around 2.5% per month (30% annually), and interest will be charged from the date of withdrawal.
- ATM Withdrawal Fee: If you choose to withdraw cash via an ATM, you may incur additional charges. However, using online banking to withdraw funds directly to your bank account avoids these ATM-related fees.
Things to Keep in Mind Before Withdrawing Money from SBI Credit Card
- High Interest Rates: Cash withdrawals on SBI Credit Cards come with high-interest rates, which can quickly add up if not paid off. Try to pay the amount back as soon as possible to avoid high interest charges.
- Repayment: Repaying your cash withdrawal is important. If you miss the payment, you’ll accrue interest on the outstanding amount, and it could affect your credit score.
- Credit Limit: Your credit card’s cash withdrawal limit is typically lower than your regular credit limit, so be mindful of how much you can withdraw. Always check your available balance before attempting a cash withdrawal.
- Alternative Options: If you need money urgently, consider using other financial products, such as personal loans or overdraft facilities, which may offer lower interest rates compared to credit card cash advances.
Frequently Asked Questions (FAQs)
1. Can I withdraw money from my SBI Credit Card using the SBI YONO app?
Yes, you can use the SBI YONO app to transfer funds from your credit card to your linked bank account, following similar steps as mentioned for online banking.
2. Is there a cash withdrawal limit for SBI Credit Card?
Yes, there is a limit for cash withdrawals on your SBI Credit Card, and it is generally lower than your total credit limit. You can check your available cash limit through the SBI online banking platform or mobile app.
3. How long does it take for the money to be credited to my bank account?
Typically, it takes 2-3 working days for the cash withdrawn from your SBI Credit Card to be credited to your linked bank account.
4. Are there any charges for withdrawing money from SBI Credit Card?
Yes, there are cash advance fees and interest charges on the withdrawn amount. The charges may vary based on the type of SBI Credit Card you hold.
5. How can I avoid paying high interest on cash withdrawals?
To avoid paying high interest on cash advances, it’s best to pay the outstanding balance in full as soon as possible, ideally before the next billing cycle.
Conclusion
Withdrawing money from your SBI Credit Card online is a straightforward process that can help you access cash in emergencies. However, it’s important to understand the associated fees and interest charges. Always consider the cost of withdrawing cash versus other alternatives, such as personal loans or overdrafts, to ensure you’re making the most cost-effective decision. By following the steps in this guide, you can easily withdraw money from your SBI Credit Card when needed.