How to Apply for a Credit Card Cash, Terms and Risks

Credit card cash is a facility provided to credit cardholders to borrow a sum of money sent to a savings account. These loan funds come from credit card limits. Generally, banks set a maximum of funds that can be disbursed as cash is 50 percent of the remaining limit.

Because, the submission process generally only requires credit card information, such as credit card numbers and names according to the card, it does not require a lot of documents.

The cash disbursement process was quite fast, which ranged from 1-2x 24 hours after the application was approved. The higher the credit limit, the greater the cash loan that can be used. Meanwhile, loan tenors start from 3-36 months.

How to withdraw a credit card limit into funds or cash loans

How to withdraw a credit card limit into funds or cash loans

Cash is often also referred to as a loan on phone. Because this facility is usually offered by banks by telephone to selected customers. Those who rarely use credit cards or passive credit card users will usually get this offer more often.

Even so, don’t worry if you never get this offer. You see, you can still apply for a loan or withdraw a credit card limit. Here’s how to withdraw a credit card limit at several well-known banks in Indonesia.

Conditions for applying for a credit card cash withdrawal fund

First, of course, you must have a credit card with a cash withdrawal facility. Next, you must have a savings account at the same bank as a credit card account. Therefore, loan funds will be transferred to the account.

Even if the cash withdrawal application does not require a number of required documents, it does not mean that the bank will immediately approve your request.

The bank will still see the credit history of the credit card owner. If you are often in arrears to pay installments or even get blacklisted, this credit card loan application is definitely rejected.

Finally, the credit card you have must be a person, not a corporate credit card.

Interest and loan costs for credit card cash withdrawals

Interest and loan costs for credit card cash withdrawals

To enjoy credit card cash, you must pay interest fees and service fees. The fee varies depending on the type of credit card and tenor and the loan limit proposed.

In general, credit card cash withdrawal funds range from 0.99-1.5 percent flat per month. Using a flat interest system is actually less profitable for customers. Therefore, the large interest will remain until the end of the installments even though the loan principal has been reduced.

Meanwhile, if you use an effective interest system, the interest on cash withdrawal loans is equivalent to 20-27 percent per year. In this scheme, interest will decrease as the remaining loan is reduced.

In addition to interest, customers will also be charged administrative fees or service fees. The amount depends on the loan limit, ranging from USD 150-300 thousand or up to 1 percent of the loan amount.

How to pay a credit card cash withdrawal loan


Cash withdrawal bills will be included in credit card bills in installments. That way, customers will pay credit card installments and loan installments. So, how to pay credit card loans is the same as paying credit card bills in general.

But remember, if the loan is paid off early or before the installment period ends, you will be charged the remaining installment interest and penalty fees, starting from USD 100-300 thousand.


Indeed, it’s okay to take advantage of the credit card cash feature. Especially if there is an urgent need when not having adequate funds. But, making credit card loan facilities as a reserve fund is certainly not good for financial conditions.

But if there is no other choice but to use this loan feature, make sure you already have a plan for using funds and installment payments. So, don’t worry when the bills come.

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