Union Bank of India launches “UNION TRADE-GST”

         Indian Banks as predicted have started to launch credit products around GST Returns.

        A few weeks back, Union Bank of India which has its Head Office in Mumbai unveiled “UNION TRADE-GST”

        In layman terms, “UNION TRADE-GST” is a working capital finance scheme aimed at SME entrepreneurs, both traders as well as manufacturers.

        Union Bank of India is the first Bank in India to launch a Credit Scheme based on GST Returns.

       

        Under “UNION TRADE-GST”,  working capital limit upto 30% of the turnover as per GST returns will be provided without insisting on assessment on other financial returns.

        Isn’t it simple n short? SMEs need not submit any other financial returns. Just file the GST Returns and be eligible for Bank Finance of upto  30%  under “UNION TRADE-GST”.

        This also reduces the manual intervention both at customer end as well as bank end.

The launch of this scheme will help the Bank to have synergy with the GST regime.

The large numbers of SME entrepreneurs have been included under the ambit of formal trade with implementation of GST. These SMEs are facing working capital crunch as in absence of proper past financials returns, they are unable to access the Bank’s credit.

The working capital assessment is based on the sales turnover, as indicated in balance sheet. Beside this, existing entrepreneurs under banking ambit are also facing credit crunch, as in GST regime the SMEs are entitled for input credit claim which is stretching their operating cycle.

Generally Banks are providing 20% of the sales turnover as working capital limit to a business entity, but to have ease in GST regime, under this scheme Union Bank of India is providing hassle free regular working capital limit upto 30% of the turnover as per GST returns without insisting on assessment on other financial returns.

The scheme will provide regular working capital limit above Rs 10.00 lacs upto Rs 200.00 lacs. The assessment of turnover & quantum of working capital is tailor-made to benefit especially the SME sector.

In furtherance to the Government of India initiatives in tax reform, compliance and digitalization, the Bank is offering POS machine with no Installation charges and waiver of annual maintenance charges for first year under the scheme.

Union Bank of India excepts this scheme to be a great enabler for an honest tax payer and incentivize the filing of GST return.

At the same time adequate financial support to such entrepreneurs through this unique scheme with inbuilt hassle free assessment based only on GST return will be easier for businesses to adopt.

Union Bank of India services its customers with through 4,295 branches spread over India and Hong Kong, DIFC (Dubai), Antwerp (Belgium) and Sydney (Australia).

To strengthen its Credit Department, Union Bank of India has kicked off a recruitment project for adding 200 Credit Officers to its HR Portfolio.

In the near future, trust Union Bank of SME Customers can avail the “UNION TRADE-GST” facilities through its Net Banking Portal.