A personal loan is one of the best solutions that you can go for if you have some urgent financial needs.
Based on your loan eligibility and other terms, you can get online approval for up to Rs.25 lakh from top lenders.
Other than offering plenty of benefits, the facility also comes with even tax benefits on personal loan. Read on and know more!
Generally, there are no income tax benefits on personal loans that you can get.
However, the way you use the loan amount can be used for the tax benefits.
Personal loan tax benefits at a glance
As per section 24 of the Income Tax Act, if you are able to use the loan amount for buying or purchasing some property, then the interest can be claimed. Yes, that can be claimed from your taxable income. Thus, if you use the loan amount to renovate or buy a home, then you can enjoy tax benefits under section 24(b).
If you have a self-owned home, an interest amount of up to Rs.2 lakh is deducted. But if it is a rented house, the interest paid on the personal loan will be counted for tax benefits. To do that, you can save your related documents as proof so that you can avail that later.
If the personal loan gets invested for any business purpose or for buying assets other than the property, then the paid interest would be added to acquisition cost. This way, your capital gains will be reduced and will also lessen the tax liability.
What are the other benefits of personal loans?
- A large loan amount
Once your personal loan application gets approved, you can get a bigger loan amount into your bank account of up to Rs.25 lakh. You can use the loan amount for any of your needs such as weddings, debt consolidations, business expansions and more.
- Instant loan approval
The approval for the personal loan can come in a flash if you are the right candidate. To be sure of the approval, you can check out the lender’s eligibility terms. Those are mentioned on the website of the creditor. Also, having a credit score of 750 or more can help you get the loan approval.
- Money in your bank within 24 hours
After you have got the loan approval, you can get the money into your bank account within 24 hours. It means that you can start using your loan money for whatever needs that you may have.
- Flexible repayment tenure
To repay the loan money, you don’t need to hamper your outlays by paying higher loan EMIs. You can stretch the loan amount over flexible repayment tenure of up to 60 months. This way, you can pay the loan money over a longer tenure so that you can manage to pay smaller EMIs and the expenses.
You are now aware of the tax benefit on personal loans. You can use the amount as the emergency loan as the personal loan for medical emergency is multi-purpose.
What’s more, the tax benefits on it further makes it one of the best financial products.
You can land on the website of the lender as per your wish and apply for the personal loan online.
To know about the best loan offer, you can compare all available offers in your city on a third-party website and pick a deal matching your needs the best.