GST business loan eligibility calculator on turnover

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Work out an indicative amount from your GST turnover

Use the turnover your GST returns show for the last 12 months. The result is indicative. Lenders decide the amount. The boxes open on an example.

GST turnover, last 12 months ₹ a year

Taxable outward supplies from your GSTR-3B returns, added up.

Expected growth next year, optional %

Lenders compare a projection with your past returns. A forecast far above the record will be cut.

Cash profit margin % of sales

Profit after tax, plus depreciation and interest on existing loans, as a share of sales. Your CA can give you this. The example assumes 10%.

Existing EMIs ₹ a month

Include every loan that is running.

DSCR a lender may want times

Use the minimum your lender asks for. The example assumes 1.25.

Interest rate for the new loan % a year

An example rate, not a market rate.

Tenure for the new loan months

Working capital limit, turnover method at least ₹24,00,000

These are the example figures. Change any box to use your own.

20% of projected turnover of ₹1,20,00,000. This is the floor the method sets, not a promised limit.

Indicative term loan, DSCR method ₹25,70,000

Cash for debt service a year, estimated: ₹12,00,000
Most the business could pay in instalments a year: ₹9,60,000
Existing EMIs a year: ₹2,40,000
Room for a new EMI a month: ₹60,000

Indicative. The term loan figure is a lender heuristic on an estimated profit, rounded down to the nearest ₹10,000, and is separate from the working capital limit. Lenders decide.

How it is calculated

Two methods, each with its source

Lenders do not publish one formula for a loan on GST turnover. The first method is stated by the government for working capital. The second is the way lenders commonly size a term loan, applied here to a profit estimated from your turnover.

Working capital: the turnover method

limit ≥ 20% × projected annual turnover

For micro and small units with working capital limits up to ₹5,00,00,000, the government has stated the limit is computed as at least 20% of projected annual turnover. The lender then takes out the share the business is expected to bring.

Term loan: the DSCR method, a lender heuristic

room a month = (turnover × margin ÷ DSCR − existing EMIs × 12) ÷ 12

DSCR follows the RBI's wording: cash accruals plus interest, over principal due plus interest. Estimating the cash from turnover times a margin is a heuristic, not RBI text or any lender's rule. The loan is the inverse of the EMI formula on that room.

Where the figures come from

Where each figure on this page comes from
Figure	Source	Checked
Working capital limit of at least 20% of projected turnover, for micro and small units with limits up to ₹5,00,00,000	PIB press release, 23-Jul-2019	02-Oct-2026
DSCR adds cash accruals to interest and divides by principal due plus interest	RBI notification, 07-Sep-2020	02-Oct-2026
GST returns for the last 6 to 12 months among the usual business loan documents, at one bank	Bank of Baroda	02-Oct-2026
Public sector banks' digital credit model scores GST data, tax returns and bank statements	PIB press release	02-Oct-2026
GST registration is compulsory only above a turnover threshold	CBIC GST update	02-Oct-2026

Worked example

Worked example: ₹1,20,00,000 of GST turnover

An example business, not a real file: no growth assumed, a cash profit margin of 10%, existing EMIs of ₹20,000 a month, an assumed DSCR of 1.25 and an example rate of 14% over 60 months.

GST turnover eligibility worked step by step
Step	Working	Result
Working capital, turnover method	20% × ₹1,20,00,000	at least ₹24,00,000
Cash for debt service	₹1,20,00,000 × 10%	₹12,00,000
Most it could pay in instalments	₹12,00,000 ÷ 1.25	₹9,60,000
Room for a new EMI	(₹9,60,000 minus ₹2,40,000) ÷ 12	₹60,000 a month
Indicative term loan	The loan an EMI of ₹60,000 supports at 14% over 60 months, rounded down	₹25,70,000

The two figures answer different questions and are never added together. The working capital limit funds stock and receivables; the term loan funds a fixed need such as machinery.

Know the limits

Limits of this calculator

It reads no GST data. It works only on the figures you type.
The term loan figure rests on the margin you enter. Your actual accounts decide what a lender sees; the business loan eligibility calculator works from them.
It does not look at credit history, bank statements, vintage or collateral. See minimum turnover and vintage for what lenders ask.

Good to know

Questions and answers

Straight answers on the method, the sources and what the numbers do and do not mean.

How much loan can I get on my GST turnover?

For working capital, a government-stated method for micro and small units sets the limit at no less than 20% of projected annual turnover, for limits up to ₹5,00,00,000. On ₹1,20,00,000 of GST turnover that is at least ₹24,00,000. For a term loan, lenders usually work from what the business can repay. Lenders decide the actual amount.

How is the term loan figure worked out from turnover?

It estimates the cash the business has for loan payments as turnover times your cash profit margin, divides by the debt service coverage ratio (DSCR) a lender wants, and takes off existing EMIs. On the example, ₹12,00,000 ÷ 1.25 minus ₹2,40,000 of existing EMIs leaves ₹60,000 a month, which supports about ₹25,70,000 over 60 months at an example 14% a year. This is a lender heuristic, not a rule.

Which GST turnover should I use?

The total of your taxable outward supplies over the last 12 months, from your GSTR-3B returns. Lenders compare it with your bank credits and income tax returns, so use the figure your returns show.

Do lenders give loans on GST returns alone?

GST returns are one of the main proofs of sales lenders use, and public sector banks' digital credit model scores GST data directly. Lenders still check bank statements, tax returns and repayment history.

Is GST registration needed to get a business loan?

Not always. Registration is compulsory only above set turnover thresholds. Below them, lenders can use bank statements and income tax returns instead, though many prefer GST returns.

What DSCR do lenders want?

Each lender sets its own minimum. Below 1 means cash does not cover debt service. The worked example assumes 1.25. Use the figure your lender gives you.

Does this calculator check my GST returns or CIBIL score?

No. It fetches nothing and makes no credit enquiry, and it asks for no GSTIN (GST identification number), name, phone number or PAN. CIBIL is the credit bureau whose score and report lenders check. Like every page on this site, it uses the analytics described in our Privacy Policy and Cookie policy.

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Sources

How to read these figures

Capnix is not a lender. Rates, amounts and approvals are decided by lenders. Rates shown here are examples, not offers.

Turnover method: Press Information Bureau release of 23-Jul-2019 on a government reply about working capital for micro and small units.
DSCR wording: RBI/2020-21/34, 07-Sep-2020, annex of ratios.
Cash for debt service as turnover times a cash profit margin: a lender heuristic used here as an estimate, not RBI text or any lender's rule.
Loan from EMI: the inverse of the standard EMI formula, a mathematical identity.

Last checked: 02-Oct-2026.