THEBUSINESSBYTES BUREAU
MUMBAI, FEBRUARY 16, 2026
In a move aimed at accelerating outbound trade and advancing the
Government of India’s Viksit Bharat vision for 2047, Union Bank of India has
introduced two new export credit working capital programmes — “Union Niryat
Sugam” and “Union Niryat Protsahan Yojana” — designed to widen access to
affordable, collateral-free finance for exporters across segments.
The “Union Niryat Sugam” scheme offers export credit working capital of
up to ₹80 crore
for manufacturer-exporters, including those outside the MSME category, while
excluding traders, merchant exporters, and businesses engaged in gems and
jewellery, diamonds, and iron
ore exports. Notably, the facility does not require collateral security, and
has been structured to provide faster, simpler access to funding so that Indian
manufacturers can scale operations and compete more effectively in global
markets.
Complementing this, the “Union Niryat Protsahan Yojana” targets micro and
small exporters by extending collateral-free export credit working capital of
up to ₹10 crore.
The scheme covers a broader base that includes traders, merchant exporters, and
firms in gems and jewellery,
diamonds, and iron ore exports, and does away with both collateral requirements
and third-party guarantees. The initiative is intended to ease credit
constraints for smaller exporters and enable them to expand their international
footprint with affordable financing support.
Both schemes offer competitively priced loans in rupee as well as foreign
currency, linked to external benchmarks, along with finer exchange margins and
direct dealing access for borrowers. The bank expects these features to improve
cost efficiency for exporters and enhance their ability to manage currency
exposures.
Union Bank of India has consistently positioned itself at the forefront
of export financing, particularly for manufacturer-exporters and MSMEs, through
a wide suite of credit solutions aimed at easing working capital pressures and
strengthening global competitiveness. The bank currently ranks second among all
scheduled commercial banks in export credit, holding close to a 10 per cent
market share, underscoring its strong presence in trade finance and its
strategic focus on supporting India’s export growth trajectory.
