1. Why are you increasing the monthly interest rate on credit card receivables?
This is in accordance with the Bangko Sentral ng Pilipinas Circular No. 1165, dated January 19, 2023, which amends the maximum interest or finance charge for credit card receivables to 36% annually, or 3% monthly.
2. When will the new rate take effect?
The new interest rate takes effect starting February 10, 2023 and will be applied to new transactions and existing unpaid balances on your UnionBank credit card/s.
3. Can the new monthly interest rate apply only to transactions starting February 10, 2023?
No, the change in monthly interest rate will apply to all unpaid credit card balances as of February 10, 2023.
4. For transactions that were made before the effective date of the BSP Circular but remain unpaid, what interest rate will be applied?
If you have an unpaid balance, the new monthly interest rate of 3% will be applied starting February 10, 2023.
5. Will the interest rate for credit card Cash Advance transactions also change to 3%?
All unpaid credit card balances, including credit card Cash Advances, will use the 3% monthly interest rate starting February 10, 2023.
6. Will this affect the effective annual interest rate of my installment transactions like EasyCash, EasyTransfer, and EasyConvert?
There will be no change in the effective annual interest rate of your installment transaction. We will continue to charge the interest rate and/or fees as disclosed on the date you availed the installment transaction, which shall be applied during its entire term.
7. Will this affect my existing 0% installment plan?
Your existing 0% installment plan/s will not be affected. No additional fees and interest will be charged if you pay in full the Total Amount Due stated on your monthly Statement of Account by the payment due date, for the duration of the installment term.
8. May I ask for a sample computation using the new Monthly Interest Rate?
In the illustration below, if the cardholder does not pay the Total Amount Due indicated on the January Statement of Account, the interest charges will be computed as follows:
- 2% monthly interest rate will apply from January 18 (day after the previous statement date) until February 9, 2023.
- 3% monthly interest rate will apply starting February 10, 2023 until the next statement date.
| Jan Cycle 17 | |
| Statement Date | Jan 17, 2023 |
| Beginning Balance (Retail transactions only) | ₱ 20,000.00 |
| Due Date | Feb 7, 2023 |
| Period Covered | Balance Subject to Finance Charge | # of Days | Monthly Interest Rate Applied1 | Interest Charge |
| Jan 18 - Feb 9 | ₱ 20,000.00 | 23 | 2% | 306.67 |
| Feb 10 - Feb 17 | ₱ 20,000.00 | 8 | 3% | 160.00 |
| Feb 17 SOA Interest Charge | 466.67 | |||
1rates are quoted based on a 30-day period.
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