Get easy access to cash with Union Bank Loan on Card facility. Enjoy greater flexibility through choice of installment payment plans. The facility can be taken up to a maximum of 75% of the credit limit.

Cardholder can choose to pay the Handling fee upfront or in monthly instalments.

Gold, Platinum and Signature cards:

Minimum loan amount – Rs.50,000

Maximum loan amount – 75% of the credit limit or Rs.500,000 whichever is lower. Subject to credit availability for the loan amount including fees.

Illustration:

For Loan on Card program of Rs.100,000 on a Platinum card

Documents required:

Duly completed Loan on Card application form (link)

Terms and Conditions

Union Bank – Loan on Card program

1. The minimum eligible amount for Loan on Card transaction is Rs.100,000. The maximum eligible amount for Loan on Card transaction is 75% of the credit limit and is subject to the available credit limit of the cardholder. The Customer applying for Loan on Card facility must fill in the Loan on Card application form and send it to the bank.
2. The cardholder is required to provide a Union Bank current or savings account number in his/her name for the purpose of disbursement.
3. The cardholder’s request/application for the facility is subject to the condition that the Card is in good standing at the time of applying and the approval from Union Bank. The Bank reserves the right to reject any application/request of the cardholder without assigning any reason.
4. The cardholder will not earn rewards points on the Loan on Card transaction amount.
5. The Loan on Card facility will be subject to a handling fee at a rate to be determined by the Union Bank from time to time.
6. Prepayment or pre-closure of the Loan on Card program transaction will not qualify the cardholder for a reimbursement of bank charges.
7. The bank at its own discretion will decide the eligibility of a cardholder for the service based on the number of months the card has been used, and its conduct.
8. The facility cannot be obtained for more than once within 12 months period.
9. The cardholder shall expressly agree and acknowledge that Loan on Card is purely a facility to the cardholder on the Credit card. Union Bank will have no responsibility over any goods or services purchased or availed by the cardholder by the use of funds obtained under this facility, which shall be at the sole risk and responsibility of the cardholder. Any dispute in relation to a transaction carried out by the use of the funds obtained under the facility shall be resolved by and between such supplier/ merchant/ third party and the cardholder and shall not in any manner affect the repayment obligations of the cardholder to the Loan on Card value and related charges to Union Bank under the Card.
10. The Union Bank shall determine the features and services attached to the use of Loan on Card facility and shall have the absolute discretion to change, withdraw, vary or amend the features, services or conditions attached thereto from time to time as the Bank deems fit with communication thereof.
11. Unless otherwise expressly provided herein, the General Terms and Conditions of Union Bank Credit cards shall apply to the Loan on Card facility and the payment of Loan on Card instalments here under shall be treated as a normal transaction charged to the credit card.
12. The Loan on Card amount shall be repaid by way of equated monthly instalments together with the handling fee. The Loan on Card Installment will be arrived at by dividing the total of respective Loan on Card amount and the handling fee amount by the tenure opted by the cardholder.
13. The total Loan on Card amount and its handling fee will be blocked within the existing credit limit and the respective instalments will be billed to the cardholder’s credit card statement on a monthly basis. The blocking will be gradually reduced along with the repayment of each installment.
14. The Cardholder acknowledges that the payments made by him/ her to his/ her credit card will be applied in accordance with the payment allocation hierarchy of Union Bank Credit cards.
15. In the event the total outstanding including Loan on Card instalment is not settled, on or before the due date of Union Bank Credit Card of a particular month, the unsettled portion of the instalment will be charged at the prevailing revolving interest rate applicable to the Union Bank Credit Card.
16. In the event the Customer’s credit card is terminated, cancelled, not renewed, or suspended due to any reason whatsoever or any breach of the terms and conditions herein including nonpayment of dues under the Loan on Card program or any breach of the General Terms and Conditions of Union Bank Credit cards, the outstanding Loan on Card Instalments and its handling fee shall become immediately due and payable in full to the Bank
17. In the event the cardholder defaults on payment of any of the instalments, Union Bank of Colombo PLC reserves the right to foreclose the outstanding Loan on Card facilities and debit the entire outstanding amount as one consolidated amount.