It is the time when taking loan can be based on GST data instead of taking a loan in exchange for gold. Tech millionaire Nandan Nilekani said that India is approaching towards the period where lenders will ask for GST based business flow or credit payment history from the borrower to lend a loan.
He further said this is the first time where GST based data can become a basis for providing a loan to consumers or businesses.
Nilekani spoke out at the foundation day of All India Management Association. He said that while filing the return, it is filed on the invoice level. Then the taxpayer can go to GST council and ask for the data, likewise, he can give it to the lender. This move will help 1 crore businesses to reach using digital media, which is accessible to take a loan from NBFC and other banks.
Nilekani favoured the committee which is working on simplification of GST process and it will make GST filing a different activity. GST can become the byproduct of business activity in future.
He said that for credit, data become the base of it. This is not an assets data. This is not a mortgage or collateral lending. It is based on flow-based lending. Normally, small traders take a loan on basis of capital flow and they do not have any assets. But now, with the GST data, taking a loan for small business will be easy. When lakhs of people will receive a loan, the economy will automatically start growing.
