{"id":29143,"date":"2021-04-19T11:20:03","date_gmt":"2021-04-19T05:50:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=29143"},"modified":"2021-04-19T11:48:03","modified_gmt":"2021-04-19T06:18:03","slug":"know-about-gst-business-loan","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/","title":{"rendered":"What are the Things you Should Know about GST Business Loan?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The implementation of GST was one of the most prevalent changes that India&#8217;s taxation system has undergone in past years. The Indian Government now allows companies to take advantage of their <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST return<\/strong><\/a> to avail the high-value GST business loan.<\/p>\n\n\n\n<p>These loans are easily\naccessible and can help businesses cater to urgent financial needs. In this\nwrite-up, we will look at how GST business loans work and how a business owner\ncan obtain them.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/#What_is_a_GST_Business_Loan\" >What is\na GST Business Loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/#Who_are_Eligible_to_Obtain_GST_Business_Loan\" >Who are\nEligible to Obtain GST Business Loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/#59-minute_Government_Portal-_Automating_the_Approval_Process\" >59-minute\nGovernment Portal- Automating the Approval Process&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/#What_is_the_Online_Procedure_to_Avail_GST_Business_Loan\" >What is the Online Procedure to Avail GST Business Loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/#What_are_the_Documents_Required_for_GST_Business_Loan\" >What are the Documents Required\nfor GST Business Loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-business-loan\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_GST_Business_Loan\"><\/span>What is\na GST Business Loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A GST business loan is\npractically a collateral-free loan. The business owners can avail it without\nmortgage any property as collateral. Financial institutions evaluate the\nborrowing capacity of credit seekers by analyzing their previous tax returns.<\/p>\n\n\n\n<p>Based on the past tax\nreturns, the banks or other financial lenders approve a suitable GST loan,\nleading to swift loan approval &amp; credit availability. GST business loan\naverts the requirement of furnishing tons of approval for the approval process.\nVarious banks or other financial lenders have their threshold limit for the\ncredit amount.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_are_Eligible_to_Obtain_GST_Business_Loan\"><\/span>Who are\nEligible to Obtain GST Business Loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Several private &amp;\npublic sector banks provide GST loans to credit seekers. Therefore, selecting\nthe right business loan can be a perplexing affair. Also, all banks don&#8217;t have\na standard credit threshold limit. The Government of India has capped the\nbusiness loan at Rs 1 crore.<\/p>\n\n\n\n<p>Business sectors from\nall verticals will benefit from the advent of this new system. The following\nentities are eligible to obtain GST business loan under the new scheme;&nbsp;<\/p>\n\n\n\n<ul><li>Public\nLimited Companies<\/li><li>Private\nLimited Companies<\/li><li>Partnership\nFirms<\/li><li>Sole\nProprietorships<\/li><\/ul>\n\n\n\n<p>Additionally, manufacturers, service providers, retailers, traders, and wholesalers can also apply for a GST business loan. In most cases, small &amp; medium firms will receive such credit through the seamless validation process, a rarity with the conventional lending system. Therefore, business entities working as an MSME are eligible to obtain GST business loans without any hassles.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/\">GST Exemption on Satellite launches for Encouraging the Domestic Launch<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"59-minute_Government_Portal-_Automating_the_Approval_Process\"><\/span>59-minute\nGovernment Portal- Automating the Approval Process&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Indian Government has set up a new portal known as 59-minute to provides financial services to <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSMEs<\/strong><\/a>.&nbsp;The portal has an extensive portfolio of loan amounts ranging from 10 lakhs to INR 1 crore. This portal&#8217;s approval process be complete within an hour, rendering businesses access to prompt and seamless funding. The GST loan approval process is completely contactless and automated.<\/p>\n\n\n\n<p>The rate of interest on\nGST loan starts from 8% against no collateral whatsoever. The disbursement of\nsuch loans is connected to the CGTMSE (Credit Guarantee Fund Trust for Micro\nand Small Enterprises) Scheme. Upon successful approval, the loan amount will\nbe disbursed in about a week.<\/p>\n\n\n\n<p>This portal leverage\nadvanced algorithms to keep fraudulent activities at bay and to verify all the\ninformation furnished by the applicants. The portal has connectivity with\nseveral financial avenues, including banks, helping prevent in-person meetings\nor visits. The GST loan is provided by the Small Industries Development Bank of\nIndia as well as public sector banks, including;&nbsp;<\/p>\n\n\n\n<ul><li>State Bank of India<\/li><li>Punjab National Bank<\/li><li>Bank of Baroda<\/li><li>Indian Overseas Bank&nbsp;<\/li><li>Vijaya Bank<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Online_Procedure_to_Avail_GST_Business_Loan\"><\/span>What is the Online Procedure to Avail GST Business Loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/What-is-the-Online-Procedure-to-Avail-GST-Business-Loan.png\" alt=\"Online Procedure to Avail GST Business Loan\" class=\"wp-image-29147\" width=\"508\" height=\"410\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/What-is-the-Online-Procedure-to-Avail-GST-Business-Loan.png 893w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/What-is-the-Online-Procedure-to-Avail-GST-Business-Loan-300x243.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/What-is-the-Online-Procedure-to-Avail-GST-Business-Loan-768x621.png 768w\" sizes=\"(max-width: 508px) 100vw, 508px\" \/><\/figure><\/div>\n\n\n\n<ul><li>First, visit the government portal and complete the registration formality by providing credentials such as email ID, phone no, and name.<\/li><li>Next, log in to the portal and furnish the Tax information and GST details as required,&nbsp;<\/li><li>Upload the XML version of tax returns and other financial documents.&nbsp;Note: the applicant can log in via their PAN and Incorporation date.<\/li><li>Next, either login or upload via bank credential to allow officials to access the bank statements.&nbsp;<\/li><li>Renders the information related to the directors, partners, and owners of the firm. Also, add the business detail and reason for obtaining the loan and a past track record for the same.&nbsp;<\/li><li>Lastly, the applicant must opt for the suitable kinder, pay the requested fees and download the approval letter&#8217;s copy once the processing is complete. <\/li><\/ul>\n\n\n\n<p>The only criteria for availing loan from this portal is that the <strong><em>business<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Business\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> must be a year old and have monthly sales of not less than Rs 2,00,000.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_Required_for_GST_Business_Loan\"><\/span>What are the Documents Required\nfor GST Business Loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>PAN card<\/li><li>Residential address proof: driving license\/ rent agreement\/ voter\u2019s ID\/ Aadhaar card \/ ration card\/ passport<\/li><li>Bank account statements (last 6 months)<\/li><li><a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> certificate\/ shops and establishment certificate\/ company incorporation certificate \/business PAN\/ trade license<\/li><li>Business owners seeking loans more than INR 20 Lakhs ought to furnish the following documents:-<\/li><li>Audited financial statements (last two years)<\/li><li>ITR detail of the last two years<\/li><li>GST Returns (last six months).&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>India has a significant\nfinancial hub outfitted with thousands of financial institutions, including\nprivate lenders. But even their presence can&#8217;t ensure that every business can\nobtain the loans according to their needs. Also, tons of paperwork and tedious\nverification process makes the business more reluctant to approach banks or\nother avenues to get loans. <\/p>\n\n\n\n<p>GST business loan, on\nthe other hand, has mitigated all such requirements. The 59-minute government\nportal allows the applicant to verify their credential within an hour. After\nthe successful verification process, the loan will be disbursed in their\naccount within a week.<\/p>\n\n\n\n<p>GST Business loans can have a remarkable impact on the lending business in India. The credit facilitation services in our country lack widespread reach. Most of the businesses fail to obtain the required funding from financial institutions due to&nbsp;Red Tapism. With such adversity escalating every passing day, the introduction of GST business loans is nothing short of relief for credit seekers across this county.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-updates-2021\/\">Key Highlights of GST Updates 2021<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The implementation of GST was one of the most prevalent changes that India&#8217;s taxation system has undergone in past years. The Indian Government now allows companies to take advantage of their GST return to avail the high-value GST business loan. These loans are easily accessible and can help businesses cater to urgent financial needs. In [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":29148,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1676],"acf":{"service_id":"96"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5356,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29143"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=29143"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29143\/revisions"}],"predecessor-version":[{"id":29169,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29143\/revisions\/29169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/29148"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=29143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=29143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=29143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}