10 Methods to Transfer Money from Credit Card to Bank Account

Yes, you can transfer money from a credit card to a bank account. Banks allow it through net banking, mobile apps, wallets and card-backed loans. What nobody tells you upfront is the cost. Every genuine route charges a fee, interest, or both, and the difference between the cheapest and the most expensive method can be huge on the same amount.

This guide covers how to transfer money from credit card to bank account using 10 methods that actually work in India, the charges on each, and which one to pick for your situation. If you don't hold a credit card yet, the GroMo app lists 28 live credit cards from SBI, Axis, IDFC FIRST and other issuers you can compare and apply for in one place.

Key Takeaways

• A credit card to bank transfer is always a paid service. Expect 1% to 3.5% in fees, or interest from day one, depending on the route.
• The cheapest genuine method is a loan against your card limit, such as SBI Card Encash or HDFC Insta Loan, at personal-loan-style interest rates.
• The most expensive is an ATM cash advance, where interest starts the same day with no interest-free period.
• Frequent transfers can attract Income Tax Department scrutiny, and cash-out workarounds like paying "rent" to yourself violate card terms.
• Wallet routes need a full-KYC wallet, and most wallets charge 2% to 4% for loading money from a credit card.

Table of contents

• Can You Send Money from Credit Card to Bank Account?
• 10 Working Methods to Send Money from Credit Card to Bank Account
• Charges Compared
• Deciding How to Transfer Money from Credit Card to Bank Account
• Don't Have a Credit Card Yet?
• What Not to Do
• FAQs

Can You Send Money from Credit Card to Bank Account?

A credit card is built for payments, not withdrawals. So when you send money from credit card to bank account, the bank treats it as one of three things. A cash advance, where interest starts immediately. A loan against your card limit, repaid in EMIs. Or a wallet transaction, where the wallet company charges the loading fee instead.

That's why the method matters so much. The money that lands in your account is identical. The cost of getting it there is not.

Banks also watch this behaviour. ICICI Bank's own guide on the topic warns that frequent transfers from a card can invite Income Tax Department attention, and that unpaid card dues from transfers damage your credit history. Use these methods for genuine short-term needs, not as a regular income substitute.

10 Working Methods to Send Money from Credit Card to Bank Account

1. Net banking direct transfer

Some issuers, including ICICI, Axis and Kotak, let you move funds from the credit card section of net banking straight to your registered savings account.

Steps to Transfer Money from Credit Card to Bank Account Using Net Banking

1. Log in to your bank's net banking portal.
2. Open the credit card services section.
3. Select the funds transfer option.
4. Enter the amount and your savings account as the destination.
5. Review the charges shown and confirm with the OTP.

The money usually arrives the same day. Daily transfer limits vary by bank, and the transaction is typically charged as a cash advance unless your bank offers a specific transfer product.

2. Mobile app money transfer

The same facility inside the bank's app, such as iMobile or Axis Mobile.

Steps to Send Money from Credit Card to Bank Account Using the Bank's App

1. Open your bank's mobile app and go to credit card services.
2. Select the money transfer option.
3. Enter your bank account details and the amount.
4. Review the processing fee and interest terms shown.
5. Confirm the transfer with your PIN or OTP.

Processing fees usually run 2% to 3% plus GST, per Airtel's guide to card transfers (source 2 below). Some banks show a promotional interest rate for a fixed window. Read the expiry date before you accept.

3. Loan against your credit card limit

The cheapest genuine route for most people. Products like SBI Card Encash, HDFC Insta Loan and ICICI Instant Loan convert your unused card limit into a loan credited directly to your bank account, often within minutes.

Steps to Transfer Money from Credit Card to Bank Account with a Card Loan

1. Open your card issuer's app or net banking.
2. Look for the pre-approved loan offer on your card, such as Encash or Insta Loan.
3. Pick the amount within your eligible limit.
4. Choose the EMI tenure and check the interest rate shown.
5. Accept the terms. The money is credited to your registered bank account, often within minutes.

Interest is priced like a personal loan rather than a cash advance, and you repay in fixed EMIs. Check your issuer's app for an existing offer before trying anything else on this list. The pricing logic works the same way as regular lending, which this guide to what a loan agent does explains in more detail.

4. E-wallet transfer

Add money to a wallet like Paytm, Mobikwik or Freecharge using your credit card, then transfer the wallet balance to your bank account.

Steps to Send Money from Credit Card to Bank Account Through an E-Wallet

1. Install the wallet app and complete full KYC verification.
2. Go to the add money or balance section.
3. Enter the amount and pick your credit card as the payment method.
4. Complete the card payment with the OTP.
5. Open the wallet's send-to-bank option, enter your account details and transfer the balance.

Two catches. Wallets charge roughly 2% to 4% for loading from a credit card. And the wallet must be full-KYC before it allows bank transfers, so complete verification first. This is the classic answer to how to send money to bank account using credit card when your issuer offers no direct transfer.

5. ATM cash advance, then deposit

Withdraw cash at any ATM with your credit card, then deposit it into your bank account. It works everywhere and needs no setup. It's also the most expensive option on this list.

Steps to Transfer Money from Credit Card to Bank Account via ATM Cash Advance

1. Insert your credit card at any ATM.
2. Enter your credit card PIN.
3. Select cash withdrawal and enter an amount within your cash limit.
4. Collect the cash and the receipt.
5. Deposit the cash into your bank account at a branch or a cash deposit machine.

The cash advance fee is 2.5% to 3.5% of the amount with a minimum of about Rs 300 to Rs 500, and interest starts from the day of withdrawal with no interest-free period at all, per the same Airtel guide. Keep this as a genuine last resort.

6. Balance transfer cheque or self cheque

Ask your issuer for a cheque drawn against your card limit and deposit it in your own name.

Steps to Transfer Money from Credit Card to Bank Account with a Cheque

1. Request a balance transfer cheque from your card issuer through the app or customer care.
2. Write the cheque in your own name, or as "self" where your bank asks for that.
3. Fill in your bank account details where required.
4. Deposit the cheque at your nearest branch.
5. Wait two to five working days for clearance.

Fees are usually lower than a cash advance, which makes this a reasonable route for planned expenses where you can wait a few days. Delayed repayment still builds up interest quickly. Clear the amount within the billing cycle if you can.

7. Phone banking request

Call your card issuer and request the transfer over the phone.

Steps to Transfer Money from Credit Card to Bank Account by Phone

1. Call the customer care number on the back of your card.
2. Complete identity verification with the agent.
3. Request a transfer of a specific amount to your registered bank account.
4. Ask whether it's being booked as a cash advance or as a loan, and at what rate.
5. Confirm only after the agent states the charges.

Those two classifications carry very different pricing, and the agent won't always volunteer the distinction. Make them spell it out before you say yes.

8. NEFT or IMPS from the card account

A few issuers allow NEFT out of the credit card through net banking.

Steps to Send Money from Credit Card to Bank Account Using NEFT

1. Confirm with your bank that NEFT from the credit card is available on your card.
2. Log in to net banking and open the credit card section.
3. Add your own bank account as a beneficiary if it isn't already.
4. Enter the amount and submit the NEFT request.
5. Track the credit. NEFT settles in half-hourly batches that run 24x7, including holidays.

Availability is issuer-specific and changes often, so confirm with your bank before relying on it. Charges follow the bank's cash advance or transfer schedule.

9. Third-party transfer services

Western Union and some payment platforms accept credit cards as a funding source for bank deposits.

Steps to Transfer Money from Credit Card to Bank Account via Third-Party Services

1. Pick a verified platform that supports credit card funding for Indian bank deposits.
2. Create an account and complete the platform's KYC.
3. Enter the destination bank account details.
4. Fund the transfer with your credit card and review the service fee.
5. Confirm and track the deposit.

Service fees run higher than bank routes, and support for direct deposits into Indian accounts is limited. Treat this as a niche option, and never enter card details on a shared or public network.

10. Prepaid card intermediary

Load a bank-issued prepaid card from your credit card, then move the balance onward.

Steps to Transfer Money from Credit Card to Bank Account Using a Prepaid Card

1. Get a full-KYC prepaid card issued by a bank.
2. Load it using your credit card through the issuer's app.
3. Check the loading fee before confirming.
4. Use the prepaid card's transfer option to send the balance to your bank account.

Functionally it's the wallet route with slightly different limits, and RBI KYC rules apply to the prepaid instrument in the same way. Useful when your preferred wallet caps credit card loading but a bank prepaid product doesn't.

Charges Compared

Exact rates sit in your card's tariff sheet, and banks revise them. Treat these as indicative and check before you transact.

Deciding How to Transfer Money from Credit Card to Bank Account

Match the route to the situation instead of defaulting to whatever's fastest.

Need a large amount for a planned expense? Take the loan against your card limit. It's the only route priced like a real loan.

Need a small amount today? Use your bank's app transfer or the wallet route, and repay within the billing cycle so the fee is the only cost.

No digital option available? The self cheque beats the ATM on cost if you can wait a few days.

Everything else has failed? The ATM cash advance always works. Just know you're paying the highest rate on this list for that convenience.

The card itself matters too. IDFC FIRST Bank cards charge a flat Rs 199 cash advance fee with interest-free ATM withdrawals until the due date on most variants, which turns the worst method on this list into a mid-priced one. Cards with pre-approved loan programs, like SBI Card and HDFC cards, make the cheapest method a two-tap job.

Don't Have a Credit Card Yet?

Every method above needs a card with available limit. If you're reading this without one, pick a card whose features match how you'll actually use it, not just the joining offer.

The GroMo app carries 28 live credit cards in its catalogue, from the SBI Credit Card and Axis Bank Neo to lifetime-free options like the IDFC FIRST Bank card and the IndusInd Tiger. You can compare features and apply from your phone, and the app shows current offers on each card.

GroMo works the other way too. It's a financial products distribution platform, so once you know the card options you can earn by referring credit cards to others, with commissions of up to Rs 2,000 per approved card on top options in the catalogue. If that side of it interests you, start with this explainer on what a credit card agent does.

What Not to Do

Some workarounds circulate on forums that we won't recommend, because they can cost you the card itself.

Paying "rent" to yourself. Routing money through rent payment apps to your own or a family member's account violates card terms. Issuers have blocked cards and clawed back reward points for exactly this.

Round-tripping through friends. Swiping your card for a friend's purchase and collecting cash looks harmless once. As a pattern, it shows up in your statement and can trigger a review.

Ignoring the tax angle. Large or frequent transfers from credit cards are visible to the Income Tax Department through your bank's reporting. If your card spends look far bigger than your declared income, expect questions.

Treating transfers as income. The money you move is borrowed at some of the highest rates in retail lending. It has to go back within weeks, or the interest compounds faster than almost any other debt you can hold.

FAQs

Can I transfer money from a credit card to a bank account for free?No. Every genuine route carries a fee, interest, or both. The closest to cheap is a loan against your card limit, or a bank app transfer repaid within the same billing cycle so the processing fee is your only cost.

How do I send money from credit card to bank account instantly?The bank's own app transfer or an ATM cash advance are the fastest, both same-day. Wallet transfers also complete the same day once your wallet is full-KYC.

Is it safe to send money via credit card to bank account through wallets?Yes, if the wallet is a licensed, full-KYC instrument like Paytm or Mobikwik and you're on a private network. The risk isn't safety, it's the loading fee.

Does a credit card to bank transfer affect my credit score?The transfer itself doesn't. What hurts is the higher credit utilisation while the amount is outstanding, and any delay in repayment. Clear the dues quickly and the impact stays minimal.

Can I transfer my full credit limit to my bank account?No. Cash advances are capped at a portion of your limit set by the issuer, and card loans are capped by your pre-approved offer. Check your card's app for the exact available amount.

Which credit card is best for transferring money to a bank account?Cards with low cash advance costs or built-in loan programs. IDFC FIRST's flat-fee cash advance and SBI Card's Encash facility are the standout features to look for.

Money moved from a credit card is borrowed money. Fees, interest rates and transfer limits are set by your card issuer and change over time, so confirm current charges in your card's tariff sheet before transacting. This article is for general information and isn't financial advice.

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