A credit card is a very useful financial tool in today’s life. It helps you make payments easily without using cash. Many people in India are now using credit cards for shopping, travel, and online payments. One popular bank that offers credit cards is Union Bank of India.
If you are planning to apply for a credit card from this bank, this guide will help you. In this blog, you will learn everything about UBI credit card apply process, eligibility, documents, benefits, fees, and real-life examples.
What is a UBI Credit Card?
A UBI credit card is a card issued by Union Bank of India that allows you to borrow money from the bank to make purchases. You can repay the amount later within a fixed time.
👉 Simple meaning:
- You buy now
- You pay later
If you pay on time, you do not have to pay extra interest.
Types of UBI Credit Cards
The bank offers different types of credit cards for different needs.
1. Classic Credit Card
- Lifetime free card
- Basic features
- Good for beginners
2. Secured Credit Card (FD-based)
- Issued against Fixed Deposit
- Best for students or new users
- Easy approval
3. RuPay Credit Card
- Works on RuPay network
- Can be used for UPI payments
4. Premium / Signature Cards
- Higher credit limit
- Lounge access
- Extra rewards
Benefits of UBI Credit Cards
Here are some common benefits:
✅ 1. Reward Points
You earn points on every purchase.
👉 Example:
- Spend ₹100 = 1 reward point
- Spend ₹10,000 = 100 points
✅ 2. Interest-Free Period
- Up to 45–50 days
- No interest if you pay full amount on time
✅ 3. Fuel Surcharge Waiver
- Save money on petrol/diesel
✅ 4. EMI Option
- Convert big payments into small monthly payments
✅ 5. Insurance Benefits
- Some cards offer accident insurance
Eligibility for UBI Credit Card
Before you apply, check if you are eligible.
Basic Requirements
- Age: Minimum 21 years
- Must be an Indian citizen
- Salaried or self-employed
- Stable income source
Income Requirement (Example)
There is no fixed amount, but usually:
- Minimum monthly income: ₹15,000 – ₹25,000
👉 Example:
- If your salary is ₹20,000/month
- You can apply for a basic credit card
Documents Required
You need to submit some documents:
📄 Identity Proof
- PAN Card
- Aadhaar Card
📄 Address Proof
- Electricity bill
- Rent agreement
📄 Income Proof
- Salary slip
- Bank statement
UBI Credit Card Apply Process (Step-by-Step)
This is the most important part.
🪜 Step 1: Visit Bank Branch
Go to the nearest branch of Union Bank of India.
🪜 Step 2: Ask for Application Form
- Fill in your details:
- Name
- Address
- Income
🪜 Step 3: Submit Documents
Attach:
- ID proof
- Address proof
- Income proof
🪜 Step 4: Verification Process
The bank will:
- Check your details
- Verify your credit history
🪜 Step 5: Approval
If approved:
- Your card will be issued
🪜 Step 6: Delivery
- You will receive the card within 7–10 days
Example: How Credit Limit Works
Your credit limit depends on your income.
📊 Example Calculation
Let’s say:
- Monthly income = ₹30,000
👉 Bank may give:
- Credit limit = ₹60,000 to ₹90,000
(Usually 2–3 times your monthly income)
💡 Usage Example
If your credit limit is ₹60,000:
- You spend ₹10,000
- Remaining limit = ₹50,000
Example: Interest Calculation
If you do not pay on time, interest is charged.
📊 Example
- Total bill = ₹10,000
- You pay only ₹2,000
- Remaining = ₹8,000
👉 Interest rate ≈ 3% per month
Calculation
- Interest = ₹8,000 × 3%
- Interest = ₹240
So next month:
- Total due = ₹8,240
Fees and Charges
Here are common charges:
💰 Annual Fee
- ₹0 (for basic cards)
- ₹500–₹2000 (for premium cards)
💰 Late Payment Fee
- ₹300 – ₹1000
💰 Interest Rate
- Around 2.5% to 3.5% per month
💰 Cash Withdrawal Fee
- 2% to 3% of amount
Pros and Cons
👍 Advantages
- Easy to use
- Reward points
- Interest-free period
- EMI facility
👎 Disadvantages
- High interest if not paid on time
- Late payment charges
- Limited online application options
Tips Before Applying
✔️ 1. Check Your Credit Score
- A score above 700 is good
✔️ 2. Choose the Right Card
- Beginners → Basic card
- Travelers → Premium card
✔️ 3. Pay Bills on Time
- Avoid interest
- Improve credit score
✔️ 4. Do Not Overspend
- Use only what you can repay
Frequently Asked Questions (FAQs)
Q1. Can I apply for UBI credit card online?
👉 Mostly, you need to visit the branch. Online options are limited.
Q2. How many days does it take?
👉 Around 7–10 working days.
Q3. Is it good for beginners?
👉 Yes, especially FD-based cards.
Q4. What is minimum income?
👉 Around ₹15,000 per month (approx).
Q5. Can students apply?
👉 Yes, through secured (FD-based) cards.
Also Read: Bajaj Finance Loan: Complete Guide for Beginners
Conclusion
Applying for a credit card from Union Bank of India is a simple process if you follow the right steps. It is a good option for beginners as well as experienced users.
In this guide, we learned about:
- Types of cards
- Benefits
- Eligibility
- Documents
- Step-by-step application process
- Real examples and calculations
A credit card can be very helpful if used wisely. Always spend carefully and pay your bills on time to enjoy all the benefits.