Today, many private and public sector banks, government institutions and financial companies are offering loans to small and medium enterprises. One of the popular loan schemes is the GST Business Loan.
A GST business loan is a working capital loan of up to Rs.1 crore based on GST returns for micro, small and medium enterprises. This means that by simply furnishing their GST returns MSMEs can procure funding for fulfilling their working capital needs.
Through this government website, MSME’s can get a business loan ranging from Rs.10 lakh to Rs.1 crore within an hour. The loan approval process is automated and contact-less. The interest rate for this loan starts from 8% and no collateral is mandatory because these loans are connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. After approval, the loan gets disbursed in about a week.
Steps involved –
Step 1. Register by providing your name, email address and mobile number.
Step 2. Provide your GST details.
Step 3. Provide tax information by either uploading your tax returns in XML format or login with your tax credentials — your PAN and date of incorporation. You can either upload your bank statements or log in with your net banking credentials.
Step 4. Provide basic details of company directors/owners.
Step 5. Provide information such as details of your business, the purpose of loan any previous loans etc.
Step 6. Select the lender, pay the convenience fee and download the approval letter.
So those were the details of GST Business Loans in India. Apply at FlexiLoans to see similar products. You can apply for a Business Loan here.