Union Bank Credit Card Charges – Complete Fee Guide & Hidden Costs

Key Insights 

• Most Union Bank credit cards have no joining fee. This makes them good for first-time users.
   
• The annual fee starts at ₹299 + GST. It can be waived if you meet the yearly spending requirement.
   
• Interest rates range from 2.5% to 2.95% per month. Cash advances cost 3% or ₹500, whichever is higher.
   
• Late payment fees go up to ₹1,000. Spending over the credit limit attracts a fee of 2.5% of the extra amount.

Credit cards can be a successful means of finance that provides rewards, ease of use, and rewards for making purchases when used responsibly. But every swipe hides a list of Union Bank credit card charges that often go unnoticed until they show up on your statement.

Union Bank of India provides a range of credit cards known for providing customer-friendly banking services. They are made for people with various lifestyles, from daily travellers to regular shoppers.

This blog presents a comprehensive overview of all Union Bank Credit Card charges, including annual and joining fees, interest rates, fees for cash withdrawals, late fees, overlimit fees, and other relevant details. 

Union Bank Credit Card Joining & Annual Charges

There are generally expenses associated with obtaining and maintaining a credit card. Consider both annual and joining fees as part of Union Bank Credit Card charges, which are fairly affordable when compared to many other banks. 

• No Joining (Processing) Fee

Many Union Bank credit card options are issued without a one-time processing or membership fee. They are a good option for people who have never used a credit card before.

• Annual Fee (Primary Card)

The annual renewal fee for the majority of common Union Bank credit cards is ₹350. If you reach the annual spending limit for your card type, the Union Bank Credit Card charges might be waived.

• Annual Fee (Add-on Cards)

Add-on cards have an annual fee of about ₹250, depending on the primary card type.

• Issue of Add-on Card

Some Union Bank cards may charge a small issuance fee of around ₹300 + GST for issuing additional cards under the same account.

Here are the common Union Bank of India credit cards for reference that the bank currently issues:

The issuance and annual fees for each card type vary significantly. Select a version that fits your budget so that the benefits beat the Union Bank Credit Card Charges.

Union Bank Credit Card Interest Rate Charges

Interest charges apply when you don’t pay the entire amount owed by the due date. Union Bank has competitive rates, particularly for clients with a solid repayment record. 

Here’s how Union Bank Credit Card Charges apply depending on the type of transaction:
 

• Retail Purchases: Interest rate ranges from 2.5% to 2.95% per month (equivalent to 30% – 35.4% per annum). Interest applies if the bill is not paid in full within the grace period.
   
• Cash Advances: The interest rate is 3% per month. Interest starts immediately from the date of cash withdrawal.

Union Bank will give you interest-free credit for up to 50 days on retail transactions if you pay the entire amount owed by the due date. You can save money by paying your bill in full each month, resulting in zero interest.

Union Bank Credit Card Cash Withdrawal Charges

It costs a lot to use your credit card as an ATM. This is the amount you will be charged when you use your Union Bank credit card to make a cash withdrawal.

• Cash withdrawal from ATMs or bank counters is treated as a cash advance.
   
• Cash advance fee is 3% of the withdrawn amount or a minimum of ₹500, whichever is higher.
   
• Interest on cash advance is charged immediately from the date of withdrawal.
   
• No interest-free period for cash withdrawals.

For example:
 

If you take out ₹10,000.
 

Fee = 3% means ₹300 + interest that accrues daily at about 2.5% per month
 

Add ₹50 if the withdrawal is made from an ATM managed by a different bank.

Cash advances should be avoided unless absolutely required because the Union Bank credit card charges and interest quickly build up.

Union Bank Credit Card Late Payment Charges

If you fail to pay your bills by the due date, you will be charged late fees. The Union Bank credit card charges are organized according to the amount owed:

Bonus Tip: Enable auto-pay from your Union Bank account to avoid late fees and maintain a good credit score. Track Union Bank Credit Card charges and spending via the Union Bank app. 

Union Bank Credit Card Overlimit Charges

Overlimit fees are typically charged if your purchases go over the allowed credit limit.

• If your spending exceeds the credit limit, a charge of 2.5% of the overlimit amount is applied.
   
• Minimum charge: ₹250

Requesting a limit increase is a smarter choice than repeatedly paying overlimit fees.

Union Bank Credit Card Other Fees & Charges

Cardholders should be aware of other Union Bank credit card charges, along with the major ones. Here are the other charges:

Simply use digital statements, make local transactions, and protect your card to prevent these Union Bank Credit card charges.

Conclusion

Union Bank credit cards come with simple, clear, and affordable charges. The majority of cards don't charge a joining fee, and annual fees can be avoided with consistent use. Cash advances cost 3% or a minimum of ₹500. Interest rates range from 2.5% to 2.95% per month. 

Make the most of your Union Bank credit card without paying additional charges by selecting the appropriate card type based on your spending patterns.

FAQs related to Union Bank Credit Card Charges

1. Are there any charges for SMS alerts and notifications?

Union Bank provides free SMS alerts for transactions, payments, and due dates to make it easier for you. 

2. Do I have to pay Union Bank for failed transactions?

Union Bank does not charge for failed transactions unless there are technical issues with the card or there is insufficient balance. 

3. Is there any charge to upgrade my Union Bank credit card to a higher variant?

There is no charge for upgrades if you have maintained a good credit history. 

 

4. How can I request a duplicate PIN for my credit card?

You can generate or reset your PIN for free through the Union Bank mobile app, ATM, or online banking platform. 

5. Can I set up EMIs for the purchases I make with my Union Bank credit card?

Yes, you can use net banking or customer service to convert transactions over a certain amount into EMIs.
 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.