Huge Relief For Exporters! Union Bank of India Launches Collateral-Free Credit Schemes Up to Rs 90 Cr

Union Bank of India has introduced two new Export Credit Working Capital Schemes, "Union Niryat Sugam" and "Union Niryat Protsahan Yojana," to promote exports and the Government of India's VIKSIT BHARAT vision by 2047.

The "Union Niryat Sugam" Scheme, without any collateral security, offers Export Credit Working Capital up to Rs. 80 crore for all manufacturer exporters, including non-MSME, with the exception of traders, merchant exporters, gem, jewelry, diamond, and iron ore exporters.

The scheme has been established especially to provide exporters with better access to reasonably priced export finance so that they can compete effectively in global markets.
For all micro and small exporters, including traders, merchant exporters, gem, jewellery, diamond, and iron ore exporters, "Union Niryat Protsahan Yojana" offers collateral-free export credit working capital up to Rs. 10 crore.

"Under this scheme, there is no requirement for collateral security or third-party guarantee. This scheme is designed for micro & small exporters extending affordable & collateral-free export finance," mentioned Union Bank of India in a statement.

Competitive interest rates in Rupee and foreign currency tied to an external benchmark are provided in both schemes, along with a superior exchange margin and direct trading access. With about 10% of the market, Union Bank of India is ranked second among all scheduled commercial banks in terms of export credit.

Union Bank of India recently notified the stock exchanges that India Ratings and Research Private Limited has reaffirmed its credit ratings on January 16, 2026. India Ratings has reaffirmed the Bank's Issuer Rating at 'AAA' with a Stable outlook, reflecting the highest degree of safety regarding the timely servicing of financial obligations.

The bank's good credit profile, steady asset quality, sufficient capital position, and ongoing support as a public sector lender are all highlighted by this reaffirmation.

The PSU Bank's third-quarter net profit, which ended on December 31, 2025, increased by 9% year on year (YoY) to Rs 5,017 crore. According to a regulatory filing, Union Bank of India reported a net profit of Rs 4,604 crore for the corresponding quarter of the previous fiscal year. In the same quarter of FY25, net interest income (NII) was Rs 9,241 crore; however, it went up by 1% to Rs 9,328 crore in Q3FY26.

The bank stated in an exchange filing that as of December 31, 2025, the Net NPA had dropped 31 basis points YoY to 0.51%, while the Gross NPA had declined 79 basis points year-on-year to 3.06%. Union Bank of India's total business as of December 31, 2025, was Rs 22,39,740 crore.

Often backed by the CGTMSE scheme, Union Bank of India provides a range of collateral-free credit schemes targeted at individuals, exporters, and MSMEs. The new "Union Niryat Sugam" and "Union Niryat Protsahan Yojana" for exporters up to Rs 80 crore and Rs 10 crore, respectively, and "Union Progress" for MSMEs up to Rs 2 crore are the key initiatives.