Personal Loan Taxation: Are there any tax benefits on the amount borrowed?
9 months, 1 week ago

Personal Loan Taxation: Are there any tax benefits on the amount borrowed?

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Personal loans offer a flexible financial solution to address a wide range of personal needs. In general, a personal loan in India typically won’t have a significant impact on your tax filing in two primary ways: The loan amount is not considered taxable income. Nevertheless, there are some exceptions where you may be eligible to claim tax benefits on a personal loan: Using the loan amount for business : If the personal loan is utilised for business purposes and proper documentation is provided, you might qualify to deduct the interest paid on the loan from your business income. : If the personal loan is utilised for business purposes and proper documentation is provided, you might qualify to deduct the interest paid on the loan from your business income. Home repair or renovation: When you use a personal loan for home renovation or improvement, you could potentially qualify for an interest deduction under Section 24 of the Income Tax Act.

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Personal loan eligibility: How does having a co-borrower affect your chances?
1 week, 6 days ago

Personal loan eligibility: How does having a co-borrower affect your chances?

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Although applying for a personal loan might seem like a pretty big financial decision, having a co-borrower with you could make the process go easier. Let's see how adding a co-borrower to your application would increase the chances of it getting approved and even possibly make the loan conditions better. Higher interest rates: Better loan terms, whereby the interest rates …

Personal loan for self-employed: 7 key tips to follow to overcome challenges
2 weeks, 5 days ago

Personal loan for self-employed: 7 key tips to follow to overcome challenges

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If you are short of funds, it is acceptable to explore the prospect of raising a personal loan to meet your needs. Typically, before banks disburse a personal loan, they examine the past few months' salary slips and CIBIL score. Shorter tenure: Banks may usually offer shorter loan repayment tenures to self-employed borrowers, thus leading to higher instalments. Reconciling actual …

6 consequences of personal loans: What you need to know before signing up
2 weeks, 5 days ago

6 consequences of personal loans: What you need to know before signing up

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Personal loans are one of the quick sources of funds that cater to a variety of purposes such as debt consolidation, house repairs, and even sudden medical bills. High interest rates: As personal loans are not secured, they normally come with higher interest rates than other secured loans like mortgages and auto loans. Paying off debt with loans: Personal loans …

Personal Loan Repayment: 8 tips to pay off your loan faster
2 weeks, 6 days ago

Personal Loan Repayment: 8 tips to pay off your loan faster

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A personal loan may be a good financial tool when used judiciously. Let's have a look at the strategies to enable you to reduce your total debt, and pay off your personal loan more speedily. Principal and interest rate are typically repaid in equal monthly instalments while paying back a personal loan. It is easier and more economic to pay …

Personal loans and tax benefits: How to maximize your savings
3 weeks, 5 days ago

Personal loans and tax benefits: How to maximize your savings

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Personal loans are one of the most commonly used financial tools to address the need for emergency funds, as they can be used for multiple purposes. “Personal loans are generally not linked to investments or income generation and, therefore, do not provide direct tax benefits. Tax benefits can be availed of personal loans utilised for certain purposes Personal loan for …

Personal Loan EMIs: A borrower’s guide for a smooth repayment strategy
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3 weeks, 6 days ago

Personal Loan EMIs: A borrower’s guide for a smooth repayment strategy

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A personal loan is a flexible financial option that facilitates quick access to funds for home improvements, meeting medical emergencies, travelling, or educational purposes. Unlike home or auto loans, personal loans do not require collateral but frequently have higher interest rates. In the early periods of the loan, a larger amount of your EMI is dedicated to interest, and the …

5 key benefits of personal loans that you should know about –– flexibility, lack of usage curbs, and …
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4 weeks ago

5 key benefits of personal loans that you should know about –– flexibility, lack of usage curbs, and …

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Life often presents us with unforeseen expenses includeasily available to people. Knowing the key benefits of personal loans can help you make well-informed financial choices to achieve your objectives. The interest rates on personal loans are usually affected by several factors, including your credit score, income, and the loan amount. Quick disbursement process: Personal loans are approved and disbursed within …

What is a personal loan? A comprehensive guide for first-time borrowers
1 month ago

What is a personal loan? A comprehensive guide for first-time borrowers

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Personal loan loans are flexible financial options that can be availed in pursuit of different goals of life such as paying an emergency medical bill, funding home improvements or realising that special dream vacation. Important factors to consider before taking personal loans 1.Loan terms and conditions: Before taking a personal loan, always read the fine print. 2. Credit score: It …

3 Key Reasons to Consider a Personal Loan for Financial Emergencies
1 month, 3 weeks ago

3 Key Reasons to Consider a Personal Loan for Financial Emergencies

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Personal loans offer a practical solution for various financial needs, including home renovation, quick cash, and life event expenses. By consolidating multiple loans into a single personal loan, you can simplify financial management and avoid missed payments. Additionally, fixed interest rates provide predictable monthly payments, helping you avoid missed deadlines and improve your credit score over time. However, it's important …

Personal loans for big purchases: Here are the pros and cons
6 months, 4 weeks ago

Personal loans for big purchases: Here are the pros and cons

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A personal loan presents a viable option for financing significant purchases. In contrast to credit cards, which may have variable interest rates based on your creditworthiness or the state of the market, personal loans provide peace of mind. Possibility of reduced interest rates: Interest rates on personal loans are usually lower than those on credit cards, especially for borrowers with …

Using personal loan for debt consolidation? The pros and cons of this move
9 months, 2 weeks ago

Using personal loan for debt consolidation? The pros and cons of this move

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Managing high-cost debt is essential for alleviating stress and advancing towards your financial objectives. Best Personal Loan for you at lowest interest rate Instant Apply Streamlined management : You’ll be dealing with a single monthly payment instead of multiple ones, simplifying the tracking and management of your debt. Possibly reduced interest : If the interest rate on the personal loan …

Using personal loan for debt consolidation? The pros and cons of this move
9 months, 2 weeks ago

Using personal loan for debt consolidation? The pros and cons of this move

Live Mint  

Leveraging a personal loan for debt consolidation can serve as a beneficial strategy to handle your debt and potentially cut costs. Here's an overview of the primary advantages: Personal loans present numerous benefits over salary advance loans, potentially making them a superior choice for diverse borrowing requirements. Here's an overview of the primary advantages: Increased loan amount : Personal loans …

Personal loans pros and cons that you must be aware of
9 months, 2 weeks ago

Personal loans pros and cons that you must be aware of

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A personal loan represents an unsecured borrowing arrangement available from institutions such as banks or credit unions. Best Personal Loan for you at lowest interest rate Instant Apply Characteristics of personal loans The demand for immediate funds is a widespread challenge, whether it’s an unexpected medical emergency or an unplanned wedding. : Due to the absence of collateral that lenders …

Interest on personal loan can be claimed as income tax deduction in some cases. Details here
2 years, 5 months ago

Interest on personal loan can be claimed as income tax deduction in some cases. Details here

Live Mint  

Answer: No tax benefits are available for repayment of a personal loan. However, interest paid on a personal loan can be claimed as a deduction depending on the ultimate use of the amount borrowed. So in case the amount of personal loan has been used for the purchase, construction or repairs renovation of your house property, you can claim the …

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