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Credit Cards

Credit Card to Bank Account Transfer: Methods and What It Costs

Moving money from a credit card to a bank is a cash advance (2.5%, min ₹500, plus up to 3.75% a month) or a loan on card with EMIs.

RM

Written by Rohan Mehta

Published 29 October 2026·6 min read

On this page8 sections
Credsir Credit Cards guide cover with a credit card icon

You can move money from a credit card to a bank account through a cash advance or a loan on card. A cash advance costs 2.5% (minimum ₹500 at SBI Card and HDFC Bank) plus up to 3.75% a month interest from day one. A loan on card has a set rate, a processing fee and EMIs, and usually costs less.

Key facts

Item SBI Card HDFC Bank
Cash advance fee 2.5% or ₹500, whichever is higher 2.5% or ₹500, whichever is higher (Infinia cards excluded)
Interest on cash advance Up to 3.75% a month (45% a year) from the date of withdrawal 3.75% a month (45% a year) on most cards, from the date of withdrawal
Interest-free period on cash None None
Loan credited to bank account Encash: from ₹25,000, 12 to 48 months Insta Loan: within available credit limit, processing fee up to ₹1,299
Rent payment fee ₹199 plus taxes per rent transaction 1% of the amount, capped at ₹4,999 per transaction

Figures are from each issuer’s Most Important Terms and Conditions (MITC), which HDFC Bank dated September 2026. Other issuers set their own charges; our credit card fees and charges comparison lists them side by side.

Methods to transfer money from a credit card to a bank account

1. Cash advance

You withdraw cash at an ATM with the card and deposit it in your bank account. The card has its own cash limit within the credit limit; HDFC Bank’s MITC sets it at 40% of the credit limit. Both SBI Card and HDFC Bank bill the fee in the next statement and charge interest from the day of withdrawal until you repay in full.

2. Loan on credit card

Some issuers offer a pre-approved loan that is paid into your savings account and repaid in EMIs on the card statement:

  • SBI Card Encash: minimum ₹25,000, tenures of 12, 24, 36 or 48 months, and funds credited within 3 to 4 working days. The amount may sit within or above your credit limit. SBI Card’s Encash page lists a processing fee of 2%, minimum ₹499 and maximum ₹3,000. Foreclosure costs 3% of principal outstanding plus taxes.
  • HDFC Bank Insta Loan: for select cardholders, up to the available credit limit, credited to an HDFC Bank savings or salary account. The processing fee is up to ₹1,299 plus GST. The loan amount is blocked on your limit, and cash withdrawal on the card stays off until the loan is repaid.

The interest rate is shown in your card account or NetBanking at the time of the offer, so compare it with a personal loan before you accept.

3. UPI and payment apps

A RuPay credit card linked to UPI works only for payments to merchants. Kotak Mahindra Bank’s guide on RuPay credit cards notes that person-to-person transfers are not allowed, so you cannot send money from the card to your own or anyone else’s bank account over UPI.

What a cash advance costs

Take ₹20,000 in cash on an SBI Card and repay it after 30 days:

Charge Amount
Cash advance fee (2.5% or ₹500, whichever is higher) ₹500
Interest at 45% a year for 30 days about ₹740
GST at 18% on fee and interest about ₹223
Total cost about ₹1,463

That is over 7% of the amount for one month. The interest keeps running daily until you pay the full amount. SBI Card’s MITC also says the interest-free period is suspended if any part of the previous bill is unpaid. SBI Card applies payments to fees, finance charges, retail spends and only then to the cash advance. A partial payment therefore clears the costliest balance last.

Paying rent and other workarounds

For years, apps let you pay rent to a landlord’s bank account with a credit card for a fee, which worked as a card-to-bank transfer. That route has narrowed. Angel One’s summary of the changes says PhonePe, Paytm, Amazon Pay, Freecharge and MobiKwik stopped card rent payments in March 2024. CRED and others followed in September 2025, after RBI’s Payment Aggregator Directions of 15 September 2025. Those directions let a payment aggregator collect funds only for merchants it has a contract with.

Where a rent-payment merchant still accepts cards, issuers charge for it. SBI Card levies ₹199 plus taxes on every transaction under merchant category code 6513 (rent), and HDFC Bank charges 1% of the amount, capped at ₹4,999 per transaction, from 1 July 2025.

How it affects your credit score

A cash advance or loan on card adds to your card balance, which raises your credit utilisation until you repay. HDFC Bank blocks the Insta Loan amount against your limit, so your available limit falls for the whole tenure. A high balance reported to credit bureaus can lower your score for a while. Our page on the credit utilisation ratio explains how lenders read it.

Missing the minimum amount due is worse: late fees apply, and the missed payment is reported to credit bureaus.

Cheaper alternatives

ItemDetails
Card EMI on the purchase itself.If you need money to pay a merchant who accepts cards, pay by card and convert the spend to EMI. See our guide to credit card EMI and no-cost EMI.
Personal loan.HDFC Bank’s personal loan rates range from 9.99% to 24% a year, below the 45% a year charged on card cash on most of its cards.
Overdraft or loan against FD.If you have a fixed deposit, an overdraft against it is another option to price before you use card cash. Our page on overdrafts and credit lines compares the options.
  1. Check your card’s cash limit and the loan-on-card offer in the issuer app.
  2. Compare the offer’s interest rate and fee with a personal loan quote.
  3. If you must take a cash advance, take only what you need and repay the full amount, not just the minimum due, as soon as you can.
  4. Check the next statement for the fee, interest and GST, and raise a dispute with the issuer if anything was not disclosed.

Frequently asked questions

Can I transfer money from a credit card to a bank account?

Yes, through a cash advance or a loan on card that the issuer credits to your bank account. UPI on a RuPay credit card does not allow person-to-person transfers.

What are credit card cash withdrawal charges?

SBI Card and HDFC Bank charge 2.5% of the amount or ₹500, whichever is higher. Interest of up to 3.75% a month also runs from the day of withdrawal.

Is there an interest-free period on a cash advance?

No. SBI Card and HDFC Bank charge interest on cash advances from the transaction date until full repayment.

Is a loan on credit card cheaper than a cash advance?

Usually, because it carries a fixed EMI rate and a one-time processing fee instead of 45% a year interest. Check the rate shown in your offer before accepting.

Can I still pay rent with a credit card?

Only where a rent-payment merchant still accepts cards. Many apps withdrew the feature in 2024 and 2025, and SBI Card and HDFC Bank charge fees on rent transactions.

Does a cash advance hurt my credit score?

It raises your card balance and utilisation until repaid, which can lower your score for a while. Missed payments hurt far more.

Sources

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