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GST Loans for MSMEs: Eligibility and Process

06-16-2022 06:12 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Kinara Capital

MSMEs are big contributors to the Indian economy, they contribute over 45% of the total manufacturing output and 35% of India's GDP. Needless to say, their impact on the Indian economy is very significant and supporting the MSME sector is going to help India's overall development. The Indian Government, especially after the COVID-19 pandemic, initiated various schemes that will help ease the financial burden on these micro, small and medium enterprises without deterring their growth and process. The GST loan for MSMEs is one such scheme that enables small business owners to leverage the GST loan credit systems to reduce short-term financial roadblocks and maintain steady business growth.

Know more about MSME lending now -

What are GST Loans?

GST loans for MSMEs are a type of collateral-free business loan given to MSME owners to conserve cash flow by deferring the payment of GST due to the Indian Government. The GST due is usually credited to an MSME's GST loan account and can be repaid during the course of 2 years depending on the terms & conditions of the loan availed either through a bank or NBFC. These unsecured business loans help small business owners mitigate the immediate financial restraints on working capital requirements and give them a small wiggle room to focus on expanding their business operations or production.

The best aspect of securing these loans without property collateral is minimum documentation and building a strong credit history for these MSMEs. Accessing formal credit in India for MSMEs is still a challenge and lending companies such as NBFCs are taking full advantage of these schemes to extend financial support to these owners.

Benefits of GST Loans for MSMEs

Fast Approvals and Disbursements - GST lending is a quick process based mostly on the business's GST payments, financial stability and credit history. MSMEs with proper filling history are eligible for quick, unsecured business loans and most NBFCs have a disbursement policy of 1-3 days.
A small business owners can approach Kinara Capital - a Systemically Important RBI registered NBFC in India, to get a collateral-free working capital loan based on their GST fillings. Kinara Capital is a socially responsible, fast-growing Fintech in India with a vision to create financial inclusion and bridge the credit gap for MSMEs in India. Kinara has a special HerVikas program that enables and empowers women proprietors with automatic discounts on collateral-free business without additional documentation. With a 24-hour decision to disbursement journey, MSMEs can access formal credits without the trappings of the bureaucratic documentation process and hassle-free doorstep services in preferred vernacular languages.

Convenience is Key - With massive efforts on digitalisation and easy tech solutions, MSME proprietors can avail loans on GST at their convenience from their preferred location. Most NBFCs and banks have a seamless digital-first solution enabling small business owners to directly check their eligibility, EMIs and submit KYC documents online. With GST loans being collateral-free and requiring minimum documentation, the process of applying for and availing these loans are becoming more convenient for MSMEs in India.

Minimum Documentation and Real-Time Assessment - GST loans are assessed purely on a small business's GST filings. The documents required for availing a GST loan are also minimum, only KYC documents are required. This enables MSME business owners to get loans based on their credibility and data published on public sites. It also enables easy tracking of funds utilised and maintains an easy repayment schedule.

Check Your Eligibility for GST Loans Now -

Eligibility and Documentation for GST Loans

A GST loan can be availed by any MSMEs operating in any industry in India. GST loans for MSMEs are typically based on operations, credit history, and GST return filings and the rate of interest for these business loans can fluctuate depending on the MSMEs' credit history and the terms and conditions of the lending NBFC or bank.

These are a list of important documents required for availing a GST loan:
- Completed GST loan application form
- Individual's PAN card and GST return invoice
- The applicant's proof of address (Aadhaar Card/ - - Rent Agreement/ Passport/ Voter ID/ Driver's License)
- Proof of business continuity (Udyam Registration/ Business PAN/ GST Registration/ Trade License/ Company Incorporation Certificate)

Being GST compliant, small business creates opportunities for growth and development for MSMEs in India. With new schemes and initiatives introduced every day, access to formal credit for small owners is going to become more convenient and easier. Grow and propel your small businesses with GST loans today!

Click here for more information -

About Kinara Capital

Kinara Capital is a fast-growing fintech propelling financial inclusion of small business owners in India. Leading with a women-majority management team, the company is globally recognized for disrupting MSME financing. Qualified as a Systemically Important NBFC by the Reserve Bank of India, Kinara Capital is a debt-listed entity on the Bombay Stock Exchange (BSE). Headquartered in Bengaluru, Kinara Capital has 125 branches across 90+ cities in India.

Visit for more information and follow us on Twitter @KinaraCapital

50, Second Floor, 100 Feet Road, HAL II Stage, Indiranagar, Bengaluru, Karnataka 560038
Reach us at:
Call us at: 1800 103 2683

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