Union Bank Credit Card Against FD

What is a Union Bank Credit Card Against FD?

The Union Bank credit card against FD is a secured financial product linked directly to your FD through a bank lock, making it an ideal choice for NRIs, students, homemakers, or individuals building their CIBIL scores. It functions as a highly cost-effective credit gateway, operating on a fixed 25% margin that grants cardholders a flexible credit limit worth exactly 75% of their total FD value and earns high Union Bank FD interest rates

The major benefit of a credit card against FD is they safely intact and continues to earn compounding interest at the bank's competitive FD rates while providing an active credit line. Furthermore, the baseline U-Secure variant is completely lifetime free with zero annual or renewal charges, and features a highly competitive interest rate of just 1.30% per month on revolving balances.

Union Bank of India Credit Against FD Features

The following are some key features of the Union Bank of India credit card against FD:

• Flexible Credit Limit: Union Bank credit card against FD offers a credit limit starting from ₹10,000, with no upper limit, subject to a maximum of 75% of the fixed deposit value.
• Available for NRI Customers: Union Bank credit card against FD is also offered to NRI customers against the security of a domestic or NRE FD through the Union Bank NRE account.
• Deposit Tenure Requirement: The fixed deposit linked to the Union Bank credit card against FD must have a minimum remaining tenure of one year with an auto-renewal facility enabled.
• Joint Deposit Eligibility: For a Union Bank credit card against FD, cards can be issued on jointly held deposits with consent from all holders. Add-on cards may be provided to any joint holder upon request in the credit card application.
• No Income Proof Required: A Union Bank credit card against FD can be availed without submitting any income proof, making it accessible to individuals with limited or no documented income.

Application Process for Union Credit Card Against FD

Follow these steps to apply for the Union Bank of India credit card against FD:

1. Maintain an Eligible FD: 

   Ensure you have a fixed deposit with Union Bank of India. The FD must have at least one year remaining and be set to auto-renew.

2. Visit Your Branch or Apply Online: 

   Detail your intention to apply for the FD-backed credit card. Provide your FD account details and submit the application form along with your KYC documents.

3. Lien Placement on FD: 

   The bank marks a lien on the FD, which determines your secured credit limit.

4. Card Issuance: 

   Upon confirmation of the lien and application approval, Union Bank issues your U‑Secure Credit Card, often within 7 working days.

5. Activate and Use: 

   Activate the card upon receipt, then start using it like a regular credit card with spending, bill payments, and EMI options while your FD continues to earn interest.

6. Submit Closure Request: 

   Visit your Union Bank branch and submit a written closure request for the U‑Secure Credit Card, stating your card number and confirming that all dues are cleared.

7. Lien Release From FD: 

   Once the bank verifies a zero-due status, the lien on your fixed deposit will be lifted. This process may take a few business days, depending on internal processing timelines.

8. Withdraw or Renew FD: 

   With the lien released, you are free to withdraw the FD, let it mature, or renew it under different terms per your financial needs.

Who Should Consider Union Bank Of India Credit Card Against an FD?

The Union Bank of India credit card against FD is suitable for:

• New-to-Credit Individuals: Ideal for young professionals, students, and recent graduates who want to establish a credit history.
• Individuals Without Income Proof: A great option for homemakers and retired individuals who have fixed deposits but no regular income.
• NRIs: Suitable for Non-Resident Indians who want a secured credit card using their NRE/domestic FDs in India.

Pros and Cons of Union Bank Credit Card Against FD

The table below outlines the Pros and Cons of Union Bank credit card against FD:

Key Takeaways

The Union Bank of India credit card against FD is issued against a fixed deposit and is well-suited for individuals without income proof or an existing credit history. It functions like a regular credit card, enabling features such as no requirement for income proof, flexible credit limit, joint deposit liability, etc. Linking this card to your active Union Bank of India savings account simplifies your monthly cycle even further. The fixed deposit rates will remain active and continue to earn profits. The card offers a credit limit of up to 75% of the deposit value and can help users gradually establish or improve their credit profile.