Union Bank of India is stepping up to boost India’s export scene and support the government’s goal of a developed nation by 2047. They’re excited to roll out two new schemes: “Union Niryat Sugam” and “Union Niryat Protsahan Yojana.”
These schemes aim to make export finance easier, faster, and without the need for collateral. This can help Indian exporters compete better in global markets.
Union Niryat Sugam is designed for manufacturer exporters. It offers working capital up to ₹80 crore. However, it doesn’t cover traders, merchant exporters, or those in gems, jewelry, and iron ore. A big plus is that exporters won’t need to provide collateral, removing a major hurdle for many.
On the other hand, Union Niryat Protsahan Yojana targets micro and small exporters. This scheme provides collateral-free working capital of up to ₹10 crore. It includes a wider range of exporters, ensuring even those in gems, jewelry, and iron ore can benefit. By skipping collateral and third-party guarantees, it opens doors for smaller businesses to access credit.
Both schemes feature competitive interest rates, available in Rupee or Foreign Currency, linked to specific benchmark rates. Exporters will enjoy better exchange margins and direct access, making transactions smoother and more cost-effective.
Union Bank of India remains committed to enhancing the export ecosystem. Currently, it ranks second among commercial banks in export credit, holding almost 10% market share. This strong position highlights its dedication to supporting exporters and the MSME sector.
Experts note that the initiatives come at a critical time. A recent survey found that nearly 60% of small exporters struggle with access to finance. By addressing this issue, these schemes could significantly impact India’s economic growth and global trade presence. Strengthening these financing options not only supports individual businesses but also uplifts the overall economy.
With the launch of these schemes, Union Bank of India is taking a crucial step to empower exporters and drive sustainable growth in India’s trade sector.
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