What does spot cash against credit card mean?
When you swipe your credit card at the nearest ATM and withdraw some amount. You get your money immediately. It seems the perfect way to get the money on quick notice rather than waiting for your salary to be credited to your accounts.
But here’s the catch.
Everytime you withdraw money from the ATM, using the credit card, a hefty charge is added to the bill. So let’s say you take 10,000 from the ATM, a cash advance charges will be levied which amounts to paying more than 10,000 rupees.
Each bank has different percentage for interest rates and cash advance charges.
Not many people know about this fine print and end up paying more than the original amount.
So where do you get spot cash against credit card in Chennai without charges involved?
Third party money lenders.
Here is the following extract based on an article in 2008 by the EconomicTimes – Wealth section
“The deal is between two parties: the credit card holder who uses his card to access money and the merchant establishment that issues money charges a commission. So long as the credit card holder is willing to pay the commission and the customer does not default, the bank or the regulator may not even be in a position to know about such deals,” a banking industry source said
Though the amount of money transacted daily through the system is not known, it is estimated to be in a few hundred crores, considering the span of the system in other cities such as Lucknow, Kanpur, Chennai, Kolkata and many parts of Gujarat. It may replace the system of money lenders like pawn brokers. “
spot cash against credit card in Chennai Basically, the customer gives their address proof and the credit card to the money lender who would then swipe the card for the borrowed amount.The cash is given without the interest charges added. Sometimes, the customer pays a certain percentage ( which is lesser than the bank charges) upfront to the lender.
The money lender would raise an invoice to make it look as if there was a sale for the said amount.
This kind of spot cash against credit card in Chennai swipe for cash is illegal in India whereas countries like UK and USA, it is legal.