Credit Card to Bank Transfer – Methods, Charges & Things to Know (2026 Guide)

Transferring money from a credit card to a bank account is possible in India, but it’s not as straightforward as a normal debit card or UPI transfer. Banks and card networks treat this as a cash-like transaction, so charges and interest usually apply.

Here’s a clear, step-by-step explanation in simple terms.

Quick Summary

• Possible? Yes, with conditions
• Common methods: Card issuer transfer, wallet route, balance transfer
• Charges: Usually high (2%–4% + GST)
• Interest: Starts immediately in most cases
• Best for: Emergency short-term cash needs only

What Is Credit Card to Bank Transfer?

It means moving funds from your credit card limit directly or indirectly into your savings/current bank account.

Important: This is treated like a cash advance, not a normal purchase.

Methods to Transfer Credit Card Money to Bank Account

1. Direct Transfer via Card Issuer (If Offered)

Some banks allow you to transfer money directly from your credit card to your bank account through:

• Net banking
• Mobile banking app
• Customer care request

Key points:

• Amount comes from your available credit limit
• Processing fee + interest applies immediately
• Not available on all cards

2. Credit Card to Wallet to Bank

This is a commonly used indirect method.

Steps:

1. Add money to a digital wallet using your credit card
2. Transfer wallet balance to your bank account

Limitations:

• Many wallets restrict or block credit card loading
• Extra charges may apply
• Wallet KYC must be completed

3. Cash Advance via ATM

You can withdraw cash from an ATM using your credit card and then deposit it into your bank account.

Things to note:

• High withdrawal fee
• Daily cash advance limit is low
• Interest starts from the same day

4. Balance Transfer / Loan on Credit Card

Some banks offer:

• Loan on credit card
• Flexi or Insta loan

Here, money is credited directly to your bank account and repaid in EMIs.

This is usually cheaper than cash advance
Still carries interest, but at a fixed rate

Charges & Interest (Typically)

While exact charges vary by bank and card type, here’s what usually applies:

• Processing fee: 2%–4% of amount + GST
• Interest rate: Around 30%–45% annually (for cash advance)
• Interest start: Immediately (no interest-free period)

Always check your card’s Most Important Terms & Conditions (MITC) in the banking app.

Credit Card to Bank Transfer Limits

• Limited by your available credit limit
• Cash advance limit is usually 20%–40% of total credit limit
• Wallet transfers may have additional caps

Is Credit Card to Bank Transfer Safe?

Yes, if done through:

• Your bank’s official app or website
• RBI-compliant wallets

Avoid:

• Third-party agents asking for card details
• Unverified apps promising “free transfers”

When Should You Use It?

Medical emergencies
Short-term cash crunch
No other loan option available

Not recommended for regular expenses
Not ideal for long-term borrowing

Better Alternatives to Consider

• Personal loan
• Loan on credit card (EMI option)
• Overdraft facility
• Borrowing from savings or emergency fund

These usually have lower interest than cash advances.

FAQs – Credit Card to Bank Transfer

A credit card to bank transfer is possible but expensive. It should be used only for emergencies, as charges and interest start immediately. If you need funds for more than a few weeks, options like loan on credit card or personal loan are usually better.