I had the same question when I first got my Kotak credit card—I wanted to know if I could use it for cash withdrawals and, more importantly, if there were any extra charges for doing so.
So, here’s what I found out based on my own experience and a bit of research. Yes, there are charges for cash withdrawals on Kotak credit cards, and they can add up pretty quickly if you’re not careful.
The cash withdrawal fee is usually around 2.5% of the amount you withdraw, with a minimum charge of ₹500. So if you withdraw ₹10,000, expect to pay a fee of ₹250 (plus taxes), but if you withdraw less than ₹20,000, the minimum charge of ₹500 will apply.
On top of that, the interest charges start accruing immediately from the day you make the withdrawal. There’s no grace period like with regular purchases, so the interest will build up right away, and the rate is generally 3.5% per month (or 42% annually).
Also, I learned the hard way that cash advances from ATMs can be more expensive when you factor in ATM fees, especially if you’re withdrawing from a machine that’s not part of Kotak’s network. You might face an additional fee of ₹100-₹150 per transaction.
If you can avoid cash withdrawals, I’d definitely recommend it, because those fees and the interest can really add up. If you do need cash, try to make it as minimal as possible and pay it back as soon as you can to avoid the high interest.
For more specific details, you could always call Kotak customer service at 1860 266 2666 to clarify any charges or check the terms and conditions on their website.