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Tata Capital > Blog > Loan for Business > What Are GST Business Loans?

Loan for Business

What Are GST Business Loans?

What Are GST Business Loans?

Do you know there is a way to leverage your GST returns for quick business financing? How? Through high-value GST business loans. Not sure what this type of loan is? Read on.

What is GST business finance?

GST business finance is an unsecured loan that can provide you with immediate liquidity to manage your business operations seamlessly. Since it is unsecured, you don't need to pledge any collateral like property or machinery or other business assets to avail of this loan.

You can choose the loan for various organisational purposes such as operational expansion, managing short term cash flows, purchasing equipment or machinery and much more. Businesses also use this loan to finance their short and long-term working capital needs.

Before approving the loan, lending institutions simply assess potential borrowers' creditworthiness or repayment capability by looking at their GST returns. What's more, the paperwork required for GST business finance is minimal. No wonder why the verification process for this loan is quick, and lenders are able to disburse funds instantly.

Additional Read: Why You Need to Get Your Business GST Verified?

Who can avail of GST business finance?

Any of the following entities can apply for this type of loan:

  • Sole proprietorships
  • Private limited companies
  • Public limited companies
  • Partnership firms

Documents required for GST business finance

As mentioned above, you don’t need extensive paperwork to apply for this type of business loan. Here is all you need:

Document typeDocument name
Application formYou need to fill out the application form correctly, complete with personal details, and sign the acknowledgement underneath.
KYC documentsProof of business entity: company incorporation certificate, partnership deed, or any other documents that act as proof of business.Identity proof: PAN card of business owners like proprietors, partners or directors.  Address proof of the business entity
Financial documentsAudited documents like balance sheet and profit and loss account from last three years.Current year’s projected business turnoverBusiness entity’s income tax return of last 1 year.Bank statements of the last 3 or 6 months, depending on your lender. 

Additional Read: What Are the Documents Required for GST Registration for Small Businesses?

GST business finance eligibility

The exact business loan eligibility criteria for the loan will depend on your lending institution. However, most lenders will look for the two following things before considering your organisation for the loan.

  • You must be running your business for at least 1 year to qualify for this loan.
  • Your minimum monthly sales figure should reach Rs. 2,00,000.

Over to You

If you are looking to fund your growing business’s urgent financial requirements, turn to Tata Capital. Avail of multi-purpose business finance at competitive business loan interest rates.

We are one of India's most sought-after lending institutions that provide business finance at easy eligibility conditions and flexible repayment tenures. Access collateral-free loan amounts as high as Rs. 75 lakhs.

Before applying, you can also check your potential EMIs with us by using a business loan EMI calculator on our website.

To know more, get in touch with us today!

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