Union Bank of India

Union Bank of India is a public sector bank founded in 1919 and headquartered in Mumbai. It operates 8,671 branches, with total assets of approximately Rs 1,499,855.67 crore on the latest published figures.

Union Bank of India runs 8,671 branches with total assets of roughly Rs 15 lakh crore, placing it among the largest public sector lenders in the country. Its network is spread widely across both western and southern India rather than concentrated in a single region, which makes it a realistic option for founders in a range of states.

Its role in the Credit Guarantee Scheme for Startups. Union Bank of India is one of 40 institutions registered with the National Credit Guarantee Trustee Company as a CGSS Member Institution (NCGTC MLI ID 28, classified as a public sector bank). Member Institutions are the lenders that actually extend credit under the scheme: you borrow from Union Bank of India, and NCGTC guarantees Union Bank of India against your default. That guarantee is what allows the facility to be extended to a DPIIT-recognised startup without collateral, with cover of up to Rs 20 crore per borrower, being 85 percent of the amount in default on loans up to Rs 10 crore and 75 percent above that.

What this means in practice. Approach the MSME or SME desk and be explicit that you want the facility covered under CGSS. Public sector appraisal timelines are documentation-driven, so having audited monthly statements, GST filings and returns assembled in advance is the single biggest thing you control.

The terms are the bank's, not the scheme's. This is the point founders most often miss. CGSS fixes the guarantee, not the loan. The interest rate, tenure, moratorium, repayment schedule and how the Annual Guarantee Fee is passed through to you are all set by Union Bank of India under its own credit policy, and they differ materially between Member Institutions for an identical borrower. Nor does registration oblige Union Bank of India to lend: it appraises you on its normal credit standards first and applies the guarantee second. Approaching more than one Member Institution is almost always worth the effort.