Apply for GST Business Loans in India


Many loan seekers often find themselves in a state of urgency without proper funding or capital. The long duration of filing for loans and the sheer number of documents to be submitted do not help in these situations. But a GST business loan is an opportunity for GSTIN holders to avail themselves of collateral-free business loans.

You do not have to mortgage any property. The loan is paid by your GST return. This aids in boosting your business. It is one of the most beneficial aspects of having a GST registration. Based on the GST returns provided, lenders assess borrower eligibility and approve a suitable loan amount accordingly.

Companies and establishments can avail themselves of high-value GST loans. These offer solutions for quick business financing. This is an ideal opportunity for working capital funding needs both in the long and short term.

Perks of a GST business loan

GST business loan is one of the most beneficial loan sources provided in our country. The only document required for a GST business loan is your GST return document. Some of the vital positives of a GST business loan are:

  • Free of collateral

GST business loans remove the need for submitting a lot of paperwork to pass a loan. It is a very common situation that SME business owners find themselves in when they are denied a loan due to a lack of collateral. Under the GST loan, you can submit your returns and KYC documents along with a few essential business details. You can easily get a business loan based on the GST number.

  • Faster disbursals

Waiting for loan approval can be tiresome. As a business owner, you might not always have that much time at your disposal. Your operational cycles may be interrupted. The delay could negatively affect your production. Or you may even miss out on a potential business opportunity. Whatever it may be, it is of no use to stand and wait long hours when you can easily have access to GST loans. Under the MSME GST loan scheme, it is possible to avail of quick loans just by uploading your documents online to your lender’s site.

  • It lets you keep your business on track.

Whether you need money for a purchase or cash flow to grow your business, if you file your GST on time, your loan will be approved.

Make sure to file your returns on time. Doing so can help you take control of your business. The GST is mandatory for business loans.

  • Multi-purpose loans

While filing for a GST business loan, the provider does not ask you the purpose of your loan. The funds available can be used for any commercial purpose. This makes it a very flexible loan choice. You can use it to meet your working capital requirements, equipment purchases, and business expansion, among other things.

When to take a business loan

A GST business loan is an efficient choice for a lot of reasons. But the two most important reasons that make a business loan a pressing choice are as follows:

  1. Urgent working capital requirements

If your establishment is short on working capital, then GST loans are the way to go to get immediate funding for your account. Because of the factors mentioned earlier in this article, a GST business loan is a quick and easy way to get funding without the conventional time delay.

  1. Lacking financial documents

Filing for GST on time is crucial to acquiring a business loan on time. It’s okay if your documents aren’t in place or if there are a few lacking documents. The biggest advantage of a GST loan is that lenders look for a bare minimum of financial records in addition to your GST return when approving your GST loan.

Eligibility and documents required for a GST loan

As the name suggests, a GST business loan can only be used for business purposes. Private limited companies, partnership firms, public limited companies, and sole proprietorships are all eligible to avail of a GST loan. It has also been seen that the different interest rates on GST for different types of businesses are caused by your credit history, the nature of your business, and the amount of your GST return.

The documents required for GST loans, although few, are to be viewed very carefully. The standard documents for any GST business loan approval are the latest GST invoice sheet, a copy of your PAN card, and a duly filled application form.

If you are looking for funding help for over Rs 20 lakh, it is mandatory to furnish the last two years’ audited financial statements, such as the profit and loss statement, balance sheet, and the last two years’ Income Tax Return (ITR).

In conclusion

Insufficient documentation and a lack of collateral are two main reasons that prevent SMEs and other establishments from having access to business loans. Individuals who are just beginning to establish their businesses find themselves in a more difficult situation. A GST business loan is of primary importance in these situations. This is because you can obtain funds quickly and efficiently without having to deal with tedious paperwork or long lists of collateral. It is mandatory that, just like any business loan, a GST loan be repaid with the interest amount every month. To learn more and gain knowledge about GST Business Loans, connect with the financial experts at Piramal Finance.