Credit cards have revolutionized people’s opinions about loans or other lines of credit in India. Of the many features that are available on a credit card, the prepaid feature provides cardholders with instant cash. Unlike other loans, the prepaid credit card feature does not require additional bank approval or other documents. It is immediately available and can be withdrawn at any ATM in India and abroad. However, the prepaid function includes certain conditions that every credit card holder must know before using the option.
Credit card advance is the technical term for the possibility of withdrawing cash with a credit card. Credit cardholders can use their credit card to withdraw cash at the bank’s ATM. Since credit cards are generally used for card transactions, the cash withdrawal feature is an additional feature that banks offer. Cardholders can use the service to withdraw money within approved limits and must return it with interest and other fees.
The feature may not be available for all credit cards, and the allowed cash withdrawal limits may vary from card to card with financing costs. Therefore, all credit card users should be aware of all these things that apply to their cards.
You can review the terms and conditions of your card or call the bank’s customer service department for details on how to prepay your credit card.
While the credit limit is the maximum amount that can be spent on a particular credit card, the cash limit is the maximum amount that can be withdrawn with a credit card. The cash limit is generally included in the credit limit available on a credit card. Most banks offer 20% to 40% of the total credit limit as a cash limit. For example, if the total credit limit of a card is Rs. 1 lakh, you can withdraw the card up to Rs. 20,000 to Rs. 40,000 in cash. The rest should only be spent on card transactions.
The cardholder generally receives the notification of the cash limit for a credit card from the bank at the time the card is issued.
The cash limit may not be the same for all types of credit cards offered by the bank and therefore varies from card to card or customer to customer. The cash limit for a particular card is not set and can be changed at any time at the bank’s discretion.
Banks can periodically review limits or take into account various parameters, including card spending habits, cardholder refund behavior, defaults, and other available credit information at branches. Recognition. These changes will be communicated to the customer by message or email.