SwipeWise

Disclosure. No link on this page earns us a commission today: buttons go to the issuer's own pages. Any paid link will be labelled, and rankings never depend on one. Details

Balance transfer and cash advance costs on credit cards

Updated 30 Oct 2026 · by SwipeWise editorial team · how we write

Withdrawing cash on a credit card, or moving a balance from another card, is priced differently from ordinary spending. This guide uses the published terms of SBI Card and HDFC Bank, as accessed on the date shown in Sources, to show how the charges add up.

These are two issuers’ schedules, not a market average. Rates, fees and exclusions change and vary by card, so your own MITC governs.

Cash advance: what the two MITCs say

  • Fee. SBI Card charges 2.5% of the amount or ₹500, whichever is higher, at domestic and international ATMs. HDFC Bank’s text reads “2.5% (Excluding Infinia, Infinia Metal Edition) or ₹500 whichever is higher”, at ATMs in India or abroad. Both bill it in the next statement.
  • Interest from the withdrawal date. Both say every cash advance carries a finance charge equal to the revolving-credit rate from the date of withdrawal until full payment. SBI Card’s MITC states the interest-free credit period does not apply to cash advances: interest is charged from the transaction date to the payment date.
  • Rate. SBI Card’s current finance charge is up to 3.75% per month (45% a year); its MITC lists 2.75% a month (33% a year) for secured, Shaurya and Defence cards. HDFC Bank lists 3.75% a month (45% a year) for all other variants and 1.99% a month (23.88% a year) for Infinia, Infinia Metal, Diners Black, Diners Black Metal, BizBlack Metal and the UPI RuPay Mega Saver card.
  • Minimum finance charge. SBI Card sets a minimum of ₹25 on each cash advance.
  • Cash limit. SBI Card’s MITC says the credit limit and cash limit are assigned on its internal criteria and communicated in every statement.
  • GST. Both MITCs say GST applies to fees and interest. See the GST guide.

RBI’s directions also require issuers to quote the annualised percentage rate separately for retail purchases, balance transfers and cash advances where they differ.

Worked example: ₹20,000 cash advance, repaid after 30 days (SBI Card terms)

Using SBI Card’s fee, its 3.75% monthly rate, and its day-count formula (45% a year x days / 365):

  • Fee: 2.5% of ₹20,000 = ₹500, which equals the ₹500 minimum, so ₹500.
  • Interest for 30 days: 45% x (30 / 365) x 20,000 = ₹739.73
  • Fee plus interest: ₹1,239.73
  • GST at 18% (SBI Card’s MITC defines applicable taxes as 18% integrated tax, or 9% + 9% for Haryana residents): ₹223.15
  • Total extra cost: ₹1,462.88, or about 7.3% of the amount, for one month.

The minimum fee matters for small withdrawals: on ₹5,000 the fee is ₹500, not 2.5% (₹125), which is 10% before GST (₹590 with 18% GST, or 11.8%).

SBI Card’s own cash example shows the timing: ₹7,000 withdrawn on 10 July and a statement on 15 July already carry six days of finance charge on the ₹7,000. At 45% a year that is 45% x (6 / 365) x 7,000, about ₹51.78.

A purchase of the same ₹20,000 paid in full by the due date would not attract this fee or interest, provided no balance is carried over, as both MITCs describe.

Balance transfer: what the MITCs say

SBI Card. Its balance-transfer table lists two tenures: 60 days at 0% interest, and 180 days at 1.7% per month (20.40% a year). A one-time processing fee is charged over and above the interest; the MITC text we read gives no amount. The MITC also says that, while a balance-transfer amount sits on the account, subsequent purchases and other outstanding balances attract the normal finance charge (up to 3.75% per month for an unsecured card) from the date of purchase, and the interest-free period does not apply to retail purchases.

HDFC Bank. The balance-transfer processing charge is 1% of the transfer amount or ₹250, whichever is higher, and GST applies to fees. A footnote to its fee table lists “Cash on Call, Balance Transfer, Cash Withdrawal” as excluded transactions; the footnote is attached to the fee table that carries the annual-fee waiver spend thresholds, so check your own card’s waiver terms.

Arithmetic on HDFC’s fee:

  • Transfer of ₹10,000: 1% is ₹100, so the ₹250 minimum applies. GST at 18% is ₹45. Total ₹295, or 2.95%.
  • Transfer of ₹50,000: 1% is ₹500, above the minimum. GST is ₹90. Total ₹590, or 1.18%.

Comparing rates: SBI Card’s 1.7% per month against its 3.75% revolving rate is 20.40% against 45% a year. The saving is real only if the transfer fee, the repayment terms and the loss of the interest-free period on new purchases are taken into account. Add up fees plus interest for the whole tenure and compare with what the original debt would cost.

What to check before you use either

  • The cash advance fee, its minimum, and the cash limit.
  • The rate and the date interest starts.
  • For a balance transfer: the processing fee, the rate for each tenure, and what rate applies after the offer.
  • Whether a balance transfer removes the interest-free period on new purchases.
  • Whether GST is added to each charge.
  • The total repayment amount, written down before you proceed.

This is general information, not financial advice. See how to read a credit card MITC, the fee waiver guide and our methodology.

Sources

Try it with your own numbers. Open the calculator

Keep reading