Your credit limit is the maximum credit sanctioned on your card. The amount you can actually use at a particular time may be lower because some part of that limit may already be utilised or blocked.
Credit Limit
The total limit sanctioned on your credit card.
Amount Used
The portion of the limit already utilised through card transactions, EMIs or other permitted usage.
Available Limit
The amount currently available for further card usage.
Why is my available limit lower than expected?
Your available limit may be reduced because of:
- purchases already made;
- transactions that are pending or not yet settled;
- transactions converted into EMI;
- pre-authorisation or temporarily blocked amounts;
- cash withdrawals or other permitted card transactions.
The exact treatment can depend on your card issuer’s terms and the nature of the transaction.
What should you check?
Open your latest card statement or the issuer’s official app / internet banking and compare:
If the available limit still appears incorrect, ask the card issuer which transaction, EMI or blocked amount is reducing it.
Example
If your credit limit is ₹1,00,000 and ₹72,000 has already been utilised, your available limit would ordinarily be around ₹28,000, subject to pending transactions, blocked amounts and the issuer’s applicable terms.
Can the card be used beyond the credit limit?
RBI requires prior explicit consent from the cardholder before a credit card is allowed to be used beyond its sanctioned credit limit.
The cardholder should also be given an option to enable or disable over-limit usage through the transaction-control mechanism made available by the card issuer.
Without explicit consent, the over-limit facility should not be provided and over-limit charges should not be levied.
What does “over-limit” mean?
The additional ₹3,000 is usage beyond the sanctioned credit limit.
Can interest or charges themselves create an over-limit fee?
For the purpose of calculating credit-limit usage and levying an over-limit charge, RBI states that interest and other charges / fees on the credit card should not be factored in.
For example, if transactions total ₹98,000 against a ₹1,00,000 limit and ₹3,000 of interest or charges are added, those charges should not themselves be treated as utilisation for levying an over-limit charge.
Over-limit charge appearing without your consent?
Ask the card issuer:
- when and how your consent for over-limit usage was obtained;
- whether over-limit usage is currently enabled;
- which transaction caused the sanctioned limit to be exceeded;
- how the over-limit charge was calculated.
If you did not give explicit consent, ask the issuer to review the charge and provide its response through the official complaint channel.
Keep the complaint or service-request reference number.
If the issue is not resolved
Escalate the matter through the card issuer’s official grievance process.
If it remains unresolved after following the applicable process, you may use the RBI complaint mechanism where eligible.
Can the card issuer increase your credit limit automatically?
RBI directions do not permit card issuers to unilaterally enhance a credit-card limit. Explicit consent of the cardholder is required for a credit-limit enhancement.
An issuer may offer a higher limit, but you should decide whether you actually want the additional credit before accepting it.
Should you accept every higher-limit offer?
Not necessarily.
Choose a limit that you can comfortably manage and repay. A higher available limit is additional borrowing capacity — not additional income.
Can the card issuer reduce your credit limit?
Yes. RBI’s directions provide that where a credit-card limit is reduced, the card issuer should intimate the reduction to the cardholder.
If your limit has been reduced, check the issuer’s communication.
- what the revised credit limit is;
- from which date the revised limit applies;
- whether existing EMI obligations or pending transactions are affected;
- whether the limit can be reviewed later.
Want a higher credit limit?
You may request a review through your card issuer’s official channel. The decision will depend on the issuer’s credit policy and assessment.
RBI requires card issuers, while assessing credit limits, to consider the limits enjoyed by the cardholder from other entities based on applicable declarations or credit information.
Practical takeaway
Transaction declined?
Check your available limit first.
Spending allowed above the limit?
Check whether you had enabled over-limit usage.
Over-limit fee charged?
Ask which transaction caused the breach and when your consent was obtained.
Credit limit changed?
Check the issuer’s communication and the revised limit.
Banking rules, contact details and procedures can change. If you notice information on this page that appears outdated or incorrect, please let us know.