Credit card over limit facility

Everything You Need To Know About Credit Card Over Limit Facility

In today's fast-paced world, credit cards have become indispensable for managing finances and facilitating transactions. However, the restrictions imposed by credit limits can sometimes prove limiting, especially in emergencies or unforeseen circumstances.

To address this challenge, credit card providers offer an over-limit facility on credit cards, allowing cardholders to exceed their credit limits by a predetermined amount.

This comprehensive blog will discuss everything you need to know about the over-limit facility on credit cards, including its functionality, activation process, responsible usage tips, and the benefits it offers.

Understanding the over limit facility

Now, learning what is over limit in credit cards is also very important. Credit limits are fundamental to credit card usage, determining the maximum funds a cardholder can spend. However, there are instances when expenses may exceed this predetermined limit, leading to declined transactions or penalties.

Credit card providers introduced the over-limit facility to mitigate this issue, allowing cardholders to surpass their credit limits by a specified margin.

The over-limit facility on credit cards enables users to easily navigate unforeseen expenses or emergencies, providing a safety net when needed. Generally, credit card issuers offer this facility as a percentage of the original credit limit, often between 10% and 20%.

For example, if your credit limit is Rs 1.5 lakh and the over-limit facility is 20%, you can spend up to Rs 1.8 lakh on your credit card.

5 benefits of over limit facility

1. Emergency financial assistance

The over-limit facility provides a safety net during emergencies or unexpected expenses, ensuring you have access to funds when needed most. Whether covering medical expenses, car repairs, or urgent home repairs, the over-limit facility offers peace of mind and financial security.

2. Flexibility in spending

With the over-limit facility, you can make essential purchases or manage cash flow gaps without worrying about exceeding your credit limit. It allows you to navigate temporary financial constraints or seize opportunities without constraints, enhancing your purchasing power and financial freedom.

3. Avoidance of declined transactions

By activating the over-limit facility, you can avoid the inconvenience and embarrassment of declined transactions due to insufficient credit limits. Whether making last-minute travel bookings or unexpected purchases, the over-limit facility ensures seamless transactions and uninterrupted access to funds when needed.

4. Financial planning and budgeting

The over-limit facility enables better financial planning and budgeting by providing a buffer for unforeseen expenses. It allows you to manage cash flow effectively, ensuring you can meet financial obligations and maintain stability even during challenging times.

5. Enhanced credit score management

Using the over-limit facility responsibly can contribute to building and maintaining a positive credit score. Demonstrating responsible credit card usage and timely repayment can enhance your creditworthiness and access to future credit opportunities.

Must Read: Disadvantages Of Having A Bad CIBIL Score

4 steps to activation over limit facility

Activating the credit card over-limit facility is a simple and convenient process. Most banks provide multiple channels for activation, including their mobile banking apps, online banking portals, or customer service hotlines.

To enable the over-limit facility, follow these steps:

  1. Log in to your bank's mobile banking app or online banking portal using your credentials.
  2. Navigate to the settings or card management section, where you can enable the over-limit facility.
  3. Review the terms and conditions associated with the over-limit facility, including any applicable fees or charges.
  4. Once satisfied, activate the over-limit facility as per your requirements.

You can use the over-limit facility as needed upon successful activation, providing peace of mind during emergencies or unexpected expenses.

Utilising the over limit facility

Once the over-limit facility is activated on your credit card, you have the discretion to decide whether to utilise it or not. While banks may approve transactions that exceed your credit limit as a service gesture, it's essential to exercise caution and use this feature judiciously. Consider the following factors before availing of the over-limit facility:

  • Evaluate the urgency and necessity of the expense: Before exceeding your credit limit, assess the urgency and necessity of the expense. Reserve the over-limit facility for emergencies or essential purchases that cannot be deferred.
  • Review the terms and conditions: Familiarise yourself with the terms and conditions associated with over-limit usage, including any applicable fees or charges. Understanding these details will help you make informed decisions and avoid any surprises.
  • Monitor your credit card usage: Keep a close eye on your credit card transactions and spending patterns to ensure you stay within your credit limit whenever possible. Regularly review your credit card statements and track your expenses to avoid inadvertently exceeding your limit.

While the over-limit facility provides valuable flexibility, responsible usage is paramount to avoid excessive debt and charges. By exercising caution and adhering to prudent financial practices, you can effectively manage your credit card usage and confidently navigate unforeseen financial challenges.

Must Read: Benefits Of Setting Credit Card Spending Limits

Avoiding over limit charges

Proactively managing free credit card usage is key to avoiding over-limit charges and maintaining healthy financial habits. Here are some tips to consider:

  • Monitor your expenses throughout the billing cycle to stay within your credit limit. Review your credit card statements regularly and track your spending to identify potential issues.
  • Set up notifications through your bank's mobile banking app or online banking portal to receive alerts when approaching your credit limit threshold. This proactive approach allows you to take timely action and avoid exceeding your limit.
  • If you anticipate needing something other than the over-limit facility, consider deactivating it through the bank's mobile banking app or the online banking portal. Turning off the over-limit facility eliminates the risk of inadvertently overspending and accruing unnecessary charges.

Like other top banks, the credit card over-limit facility on a Kotak 811 credit card is a valuable tool for users facing unexpected financial needs or emergencies.


By activating the credit card over-limit facility and understanding its terms and conditions, cardholders gain greater flexibility and peace of mind in managing their finances. However, responsible usage is essential to avoid excessive debt and charges. Cardholders can effectively leverage the over-limit facility to navigate financial challenges and achieve their goals by monitoring expenses, reviewing terms and conditions, and exercising caution.

Whether managing everyday expenses or addressing unforeseen emergencies, the credit card over-limit facility gives users peace of mind and financial flexibility. By adopting prudent financial habits and making informed decisions, cardholders can confidently navigate their financial journey and make the most of credit cards' convenience.