Union Bank of India Launches Two New Collateral-Free Export Credit Schemes to Boost Exports
Collateral-free export credit schemes launched to strengthen exporters and MSMEs under the Viksit Bharat 2047 vision
Reinforcing its commitment to strengthening India’s export ecosystem and supporting the Government of India’s vision of Viksit Bharat by 2047, Union Bank of India has launched two new Export Credit Working Capital schemes — “Union Niryat Sugam” and “Union Niryat Protsahan Yojana.”
The newly introduced schemes aim to provide easier, faster, and collateral-free access to export finance, enabling Indian exporters to enhance competitiveness in global markets.
Union Niryat Sugam: Support for Manufacturer Exporters
The Union Niryat Sugam scheme offers Export Credit Working Capital facilities of up to ₹80 crore for manufacturer exporters, including Non-MSME entities. However, traders, merchant exporters, and exporters dealing in gems, jewellery, diamonds, and iron ore are excluded from the scheme.
A key highlight of the initiative is that collateral security is not mandatory, significantly reducing financing barriers for exporters. The scheme has been designed to provide affordable and accessible export finance, helping manufacturers scale operations and expand international outreach.
Union Niryat Protsahan Yojana: Focus on Micro & Small Exporters
The Union Niryat Protsahan Yojana specifically targets micro and small exporters, offering collateral-free Export Credit Working Capital of up to ₹10 crore.
The scheme covers a broader category of exporters, including traders, merchant exporters, and those engaged in gems, jewellery, diamond, and iron ore exports. Notably, it eliminates the requirement of both collateral security and third-party guarantees, thereby improving credit accessibility for smaller businesses.
Competitive Financing and Forex Benefits
Both schemes offer competitive interest rates in Rupee as well as Foreign Currency, linked to external benchmark rates. Exporters will also benefit from finer exchange margins and direct dealing access, helping reduce transaction costs and improve efficiency in foreign trade operations.
Strengthening India’s Export Ecosystem
Union Bank of India has consistently remained at the forefront of supporting manufacturer exporters and the MSME sector through a wide range of credit facilities aimed at easing working capital pressures and enhancing global competitiveness.
The bank currently holds the second position in export credit among all scheduled commercial banks, commanding nearly 10% market share, underlining its strong presence in India’s export financing landscape.
