Fubon Credit Card “Interest-free Cash Installment Plan”- FAQ

Fubon Credit Card “Interest-free Cash Installment Plan”- FAQ

Q1. What is Fubon Credit Card “Interest-free Cash Installment Plan”?

Fubon Credit Card “Interest-free Cash Installment Plan” (“This Installment Plan”) is a kind of installment loan that converts part of un-used credit card limit into cash and the monthly installment amount will be posted on the credit card account. Customer should settle the outstanding amount according to that displayed in the monthly statement to easily enjoy the financial flexibility to fulfill daily needs.

Q2. Am I eligible to apply this installment plan?

This Installment Plan is only applicable to the designated Fubon credit card account of existing cardholders selected by Fubon Bank. If customer is not being selected but would like to apply, please call Fubon Bank Integrated Customer Service Hotline at 2566 8181 (press 4 > 1 after language selection). Fubon Bank reserves the right to approve or decline any application at its discretion without giving any reason therefor. Final approved Installment amount is subject to the account condition and other conditions (including but not limited to the available credit limit at the time of approval in our bank and other financial institutions).

Q3. How much can I borrow from this installment plan?

The minimum Installment Loan Amount of this installment plan shall be HK$3,000 while the maximum amount shall be equivalent to 90% of available credit limit of the designated Card Account or HK$500,000 (whichever is lower). The final approved installment loan amount is subject to the Bank’s assessment on the principal Cardholder.

Q4. Does this installment plan affect my credit card limit or spending?

This installment plan converts part of your un-used credit card limit into cash. Customer can enjoy the financial flexibility to fulfill your daily needs by making use of any un-used portion of the credit limit. The credit limit of your Credit Card will be restored with reference to the monthly repayment made.

Q5. What is the calculation basis of total handling fee, monthly handling fee and monthly installment amount of this installment plan?

  • Total handling fee of this installment plan is calculated based on the sum of Monthly Handling Fee (if applicable) plus One-off Administration Fee. Monthly Handling Fee and One-off Administration Fee are formed by certain percentage of the Installment Loan Amount.
  • Monthly Installment Amount consists of monthly principal repayment and monthly handling fee. The Bank adopted the “Reducing Balance Method” to breakdown the principal and handling fee in the monthly repayment of this installment plan. This method allows the repayment proportion of handling fee higher during the beginning of the repayment while the repayment proportion of principal will be higher during the end of repayment. Customer can visit this installment plan repayment calculator to illustrate how the principal and handling fee are apportioned in the monthly installment amount with reference to mock this installment plan repayment example.

  • Details of the Installment Loan Amount, Repayment Tenor, Monthly Handling Fee (if applicable), One-off Administration Fee, Monthly Installment Amount and the apportionment of monthly principal repayment and monthly handling fee throughout the repayment tenors will be set out in the Confirmation Letter.

Q6. What is Annualized Percentage Rate (APR)?

APR, calculated in accordance with the guidelines as set out in the Code of Banking Practice, is a reference rate expressed as an annualized rate which includes the non-refundable monthly handling fee (if applicable) and one-off administration fee. In general, the lower the APR, the lower the cost of borrowing.

Q7. How do I know the monthly repayment amount?

The monthly installment amount (including the principal amount and the handling fee) will be printed on the confirmation letter and shown on your credit card statement accordingly.

Q8. What is the consequence for late payment?

If the total balance shown in the monthly credit card statement is paid on or before the statement due date, no additional finance charge will be applied. If the total balance shown in the monthly credit card statement is not paid on or before the statement due date, a Cash Advance Finance Charge will be levied. If the Minimum Payment shown in the monthly credit card statement is not paid on or before the statement due date, Late Charge will be levied on top of the Finance Charge mentioned above. For details of Finance Charge and Late Charge, please refer to ”Fubon Bank Visa/MasterCard Cardholder Agreement” and “Fubon Credit Card List of Service Charges”. Besides, late payment records may be maintained in the consumer credit data bureau. They may directly affect customers’other loan applications in future and interest rate entitlement. 

Q9. Can I repay the loan amount in full early at any time?

If you choose to repay the loan amount in full early at any time during the repayment, the balance of the outstanding installment loan amounts, monthly handling fee of next installment (if applicable and according to the reducing balance method adopted by the Bank at its sole discretion, and the Bank also reserves the right, in its sole and absolute discretion to apportion the monthly installment of installment loan amount and handling fee amount), one-off administration fee (if not yet charged), and the early settlement fee (Termination Fee) of HK$500, will be debited to the card account and in such case be immediately due and payable.

Q10. Do I save handling fee expenses by making early repayment of this installment plan?

Generally speaking, the earlier a customer makes early repayment, the more outstanding monthly handling fee of this installment plan are likely to be saved. Nevertheless, customers should consider the early repayment charges involved before deciding whether to pay off their loans early or not. Customers need to be aware that Monthly Installment Amount of this installment plan consists of monthly principal repayment and monthly handling fee. The Bank adopted the “Reducing Balance Method” to breakdown the principal and handling fee in the monthly repayment of this installment plan. This method allows the repayment proportion of handling fee higher during the beginning of the repayment while the repayment proportion of principal will be higher during the end of repayment. (customer can visit this installment plan repayment calculator to illustrate how the principal and handling fee are apportioned in the monthly installment amount with reference to mock this installment plan repayment example). In other words, where a customer has been making repayments as scheduled for some time, the amount of outstanding monthly handling fee is likely to be small. If the customer chooses to pay off the loan early at this point of time, the loss may outweigh the gain as the amount of monthly handling fee saved may not be enough to cover the relevant charges for early repayment. As a smart bank customer, one should first check with the Bank about the total amount involved in early repayment (including outstanding loan balance, the Monthly Handling Fee of next installment (if applicable), Termination fee and other fees, etc., please refer to the above Question 9 for details) and the amount of outstanding monthly handling fee. He/she should then compare different scenarios and consider carefully before making a decision of repaying early or not. Also, customer can visit this installment plan repayment calculator to show after which point of time the amount of monthly handling fee saved by early repayment may not be enough to cover the early repayment charges with reference to a mock early repayment example.

Q11. How can I understand the details of this installment plan at Fubon Bank Website?

Customer can visit the followings to understand the details of Fubon Credit Card “Interest-free Cash Installment Plan”:
"Interest-free Cash Installment Plan" Key Facts Statement – Details
"Interest-free Cash Installment Plan" Terms and Conditions – Details
"Interest-free Cash Installment Plan" Repayment Calculator – Customer can calculate monthly installment amount and apportion principal and handling fee in the monthly installment amounts with reference to mock this installment plan repayment example. The sample can also simulate at which point of time the amount of monthly handling fee saved by early repayment may not be enough to cover the relevant charges for early repayment. Details

To borrow or not to borrow? Borrow only if you can repay!

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