GST data aids lenders’ decision on SME loans

NEW DELHI : The treasure trove of data captured in the GST framework about economic transactions is beginning to drive financial institutions’ lending decisions, especially to small and medium businesses, according to agencies that generate various statutory documents and invoices.

E-way bills are now mandatory for the transport of goods within and across states, and e-invoices show business-to-business transactions to the government on a real-time basis. Data from these are now forming the basis for financial institutions to ascertain a corporate borrower’s cash flow position and identify credit worthiness, GST Suvidha Providers and private agencies authorized to generate these invoices and documents through software linked to official portals said.

https://www.livemint.com/news/india/gst-data-aids-lenders-decision-on-sme-loans-11664734596927.html
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