A GST Surrogate Business Loan is a product that allows MSME entrepreneurs to obtain money based on their GST records. If you’re a small company owner with at least two years of GST experience, this loan is the best option for you.
Small and medium-sized businesses may now get loans from a variety of private and public sector banks, government entities, and financial corporations. The GST Business Financing is a popular loan option. A GST business loan for micro, small, and medium companies is a term loan of up to Rs.1 crore based on GST filings. This implies that MSMEs may get finance for their working capital needs simply by submitting their GST reports.
Features and Amenities
- Product that is simple and easy to use Up to Rs 2 crore in overdraft
- Cases up to Rs 1 crore can be processed entirely online, with a prompt in-principle approval.
- No Financial Documents Required
- The voyage is completely paperless.
- Unsecured Loans Up To 30 Lacs
- Norms for simple assessment based on GST returns
- Loan Disbursement In 5 Days
- Obtain a self-occupied residential, commercial, or industrial property as collateral for an overdraft.
- Please contact your local branch or your Relationship Manager if you have a demand of more than Rs 1 crore.
Uses of a GST Surrogate Business Loan
While the possibilities are endless, here are some common purposes for which a GST Surrogate Business Loan can be procured for your business:
- Obtaining working capital
- Purchasing raw materials
- Fulfilling bulk orders
- Maintaining a healthy cash flow
- Purchasing inventory
- Paying suppliers in advance
Paying for overhead expenditures such as payroll, rent, and office fees
What kind of assets do lenders accept as security for your loan?
Lenders accept self-occupied residential, commercial, and industrial properties as collateral, as well as liquid instruments like as fixed deposits.
Who can benefit from the Working Capital Finance?
You can apply for our Business Loan and benefit from our goods and services if you are a manufacturer, a service provider, a retailer/wholesaler, or an import/export trader.
Documents Required for GST Surrogate Business Loan
- KYC of the shop owner
- Proof of Ownership for residence / office
- GST Registration Certificate
- GSTR 3B for the last 24 months
- Business bank statements for the last 6 months
- ITR & Computation of Income for the last 1 year
- Loan obligation sheet
Eligibility Criteria
- The age of the promoter should range from 25 to 60 years old.
- The company should have a minimum of three years of experience.
- Owning a Home or a Business
- Earn a minimum of Rs. 2 crore in annual revenue.
- Have the latest six months’ bank statements on hand.
- Must not be on the SBA’s financing blacklist.
- Trusts, non-governmental organisations, and philanthropic organisations are excluded.
What kinds of Businesses are eligible for the facility?
- A Sole Proprietorship Company
- Private Limited Corporation
- Partnership Firm
- Limited-by-Shares Corporation
Features and Benefits of Loan
1. Loan Tracks are used to give the Loan
If the borrower has taken out previous substantial loans in the past, such as an equipment loan, a mortgage, or a commercial vehicle loan, and has returned them on time with no defaults, the new lender may offer the applicant the same or a slightly lower proportion of a home loan.
2. Method of Gross Profits
In an industry with a large turnover but a lower profit, lenders will accept a computation based on gross profit rather than net profit.
3. Funding amount of Money in the Bank Account
In industries where turnover is high but profit margins are always low (such as some trade businesses), lenders will accept calculations based on gross profit rather than net profit. Any customer’s credit worthiness must be determined using bank statements from the previous 3-6 months. As a result, the majority of banks have begun to request it.
4. Industry Margin-Based Turnover
If the borrower operates a manufacturing or trade firm, the borrower has established a standard profit margin internally. For example, a manufacturing facility with a turnover of 2 crores is projected to produce a 10% profit, therefore the income can be calculated as 20 lacs, and the loan application can be approved on this basis, even though the revenue is not reported. Similarly, because there is no machinery or other assets, such as a manufacturing facility, it might have been put at 5% for a trading firm and highlighted at a higher risk grade. A service business, on the other hand, may not be eligible for surrogate funding at all.
Impact of GST Loans
The amount of taxes that these firms must pay has grown significantly since the services industry is subject to an 18 percent GST. Imports of raw materials have been harmed as a result of this. However, taxes on interstate goods transportation have been cut under the new regime.
When requesting a working capital loan, every firm must account for the higher cost of imports as well as the decreased cost of moving products. Only after accounting for these can the GST on loan amount for business loans is calculated.
Where to get GST Surrogate Loan?
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . Currently, we are offering We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
- Short Term Loans for working capital needs
- Medium Term Loans for various business needs
along with ITR Saral Copy, Computation of income statement, Balance sheet, P&L, 3 CA , 3 CD Audit reports along with all schedules.
Omozing Business Loans based on the following:
- Unsecured Working Capital Loan
- Microloans
- Invoice Discounting
- GST Surrogate
- Revenue Based Finance
- Banking Surrogate