Cash advance is one of key facilities provided on credit cards by many banks but most people would advise you against it. However, if you know well about cash advance & its related charges then you are able to make a better decision on your own. May be you will draw cash sometimes after reading this article. In any situation, you should know about Cash Advance facility so that you might use it fully knowing about its charges, you never know when you might need it.
Also, there is a limit of how much you can draw cash out of your credit card. Cash Advance Limit is usually 50% of your total credit limit. But every bank has its own limit for cash advance which is mentioned below.
When you draw cash from your credit card, two types of charges are applied. One is fixed fee & other is service charges that depend on amount of transaction & are applied daily until its paid in full according to bank’s APR for Cash Transactions.
Following are details of these charges applied by various banks for cash advances.
| BANK | Cash Advance Limit (% of credit limit) | Cash Advance Fee | APR for Cash Transactions |
| HBL | 75% | Rs. 900/- or per transaction 3% of withdrawn amount, whichever is higher | 40% |
| UBL | 30% | Rs. 1,000/- per transaction or 3% of cash advance amount, whichever is higher | 42% |
| Allied Bank | 50% | Rs.500/- (per transaction) or 3% of the cash transaction amount whichever is higher | 28% |
| MCB | 50% | Rs 750 (per transaction) or 3% of the cash advance transaction amount, whichever is higher. | 40% |
| Standard Chartered | 30% | Rs 1,000 (per transaction) or 3% of the cash advance transaction amount, whichever is higher. | 42% |
| Bank Alfalah | 50% | Rs. 1,000/- per transaction or 3% of cash advance amount, whichever is higher | 40% |
| Silk Bank | 50% | Rs. 1,000/- per transaction or 3% of cash advance amount, whichever is higher | 41.99% |
| Faysal Bank | 50% | Rs. 1,000/- or 3% of Cash Transaction whichever is higher | 40% |
Two things you should remember: one, if you want to draw cash, draw as much you require at once instead of two times or more, because cash advance fee is applied every time you draw cash. Second, check out how much APR is applied on daily basis so that you can decide how much service charges you are able to bear. To know how these charges are applied and calculated (on daily basis), CLICK HERE!
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