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What Are The Benefits of Taking A GST Business Loan?

The introduction of GST has significantly simplified the Indian taxation system and boosted Indian economy. With such a massive change in the taxation system, the Indian Government now allows companies to take advantage of GST return to secure high-value GST business loan. 

Among different financial products, individuals can also opt for a GST business loan, which eligible borrowers can secure by displaying their essential GST documents. If borrowers are interested in avail this financial product, they can follow the section below:

What is a GST business loan?

GST business loans or GST loans are unsecured borrowing solutions where the lender provides substantial finances without collateral.  The lender will assess the GST returns and tax filling statement to determine a borrower’s creditworthiness and sanction loan accordingly. To avail GST business loan, borrowers are not required to provide any additional financial documents.

Benefits of GST business loan

With the introduction of different types of GST, tax laws have been changed and also the pattern of doing business. In simpler terms, GST has significantly made transactions transparent, thereby improving business credibility and allowing them to secure sizeable business loans.

Individuals can apply for such loans to cover their business’s working capital requirements.

Here individuals can choose a suitable tenor and repay the loan amount in EMIs at competitive interest rates. One can calculate the EMIs by using a business loan EMI calculator beforehand and ensure hassle-free repayment. 

Following are some of the benefits of availing a GST business loan:

  • Loan without collateral

    One of the common issues that small businesses usually face when looking for SME loans is that the lender either rejects their loan application due to the lack of collateral or ask them to submit a heap of paperwork to approve their loan amount. Under a GST, individuals must submit their GST return and KYC documents with few important business details. You can easily secure a business loan with a GST number.
  • Keep business under control

    If your business requires emergency funds to purchase raw materials or equipment or is willing to expand it, you can easily secure a substantial fund if you have filed your GST on time. This type of financing solution allows individuals to keep control of their business as they can avail cash anytime based on their requirements.
  • Hassle-free disbursal

    Being a business owner, you may not have ample time to wait for your lender for document verification and loan approval. A delay in loan approval can disrupt production or an operational cycle. In such a scenario, if a business owner has significant proof of GST filing, he/she can just approach a lender, upload necessary documents and secure a GST business loan for MSMEs.

Moreover, funds secured from GST business loan can be utilised to meet various business requirements, and it also ensures that your business never runs out of working capital.

How does a GST business loan work?

The GST business loan works similarly to any other loan. It is only the basis of the loan that varies and depending on its type. 

When an individual applies for an unsecured business loan, the lender evaluates their audited financial statements such as balance sheets, profit and loss statements, etc. Just like any other financial product, a GST loan must be repaid diligently along with the interest amount over time.

Businesses across different sectors like trade, manufacturing and services can avail this business loan against their GST return. 

It is found that small and medium enterprises find it difficult to get substantial funding. Hence, the eligible business entities that fall into the MSME category can avail affordable business loans from leading financiers by simply furnishing the GST return documents.

Individuals applying for GST business loans from reputed financial institutions like Bajaj Finserv can also avail pre-approved offers on a suite of unsecured financial products like business loans, personal loans, etc.

These offers not only expedite the loaning procedure but also save time. Prospective borrowers can check their pre-approved offers online by submitting their essential credentials.

Most financial institutions extend business loans, but many organizations find it difficult to obtain funds due to a lack of eligibility insufficient documentation. Thus, in this situation, a GST business loan becomes an effective funding option to meet the business financial requirements. 


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