Personal loans are one of the trendiest things because of their benefits. It is now a go-to financial option to satisfy various needs. In various emergencies, personal loans come in handy to fund emergency needs.
A personal loan or an instant loan is able to give back financial stability after solving the financial crisis. Besides, you can always use an app to borrow money that does not require any kind of collateral fees. No mortgage is needed to keep as security. Overall, the personal loan concept is really helpful for many.
What is a personal loan?
A personal loan is such an emergency fund that is easily available from any online lending app or bank to satisfy those unforeseen events.
But why do people appreciate personal loans from fast loan apps when it has to be repaid again to the financial institution or money lending platform? Well, here are the reasons behind it.
- Medical emergencies: Medical emergencies are one of the biggest emergencies where you may need a huge amount of money. These days, the overall prices of hospital bills, medicines, etc. have increased rapidly. To match that level, a personal loan amount can help.
- Home renovation: Home renovation or repair is very much pricey. You can not simply put any random things in your home. To fund those high-class building materials, you can take the help of instant loans from an online cash loan app.
- Higher education: Education fees have experienced a huge hike in recent years. The admission fees, tuition fees, etc. have increased tremendously. It is a huge problem for many. To fund a higher education fee, you can get assistance from personal instant loans using a money borrow app.
- Shifting to new places: Shifting to a new place means packing stuff, moving it to the new place, and lots of other such things. That means it is a matter of a huge amount of money to shift your belongings. Thanks to personal online loans, you can now stay less worried about booking packers or movers before shifting to a new place.
- Dream wedding: Indian weddings are always royal ones where you need to spend huge money to afford that regal atmosphere. You can apply for online personal loans on various online platforms where you will get the lowest interest for loan repayment.
- Huge purchasing: Purchasing a dream bike or a dream house is not always possible due to price. But online personal loan is such a thing that makes sure your ability to purchase high-priced commodities.
Is the personal loan amount taxable in India?
Usually, there are no such strict rules on personal loans when it comes to income tax. As personal loans are not a part of income, these are not taxable. So, the thing is you do not need to pay any income tax on personal loans. But you should remember one thing: choosing a trustworthy money lending source. Always choose a very reliable lending platform. You can choose various online sources where no hidden fees are included.
Are there any tax benefits on personal loans?
You can enjoy tax benefits as mentioned below.
| The final use of the personal loan amount | Legal implications | Tax benefits limits |
| Home repair or renovation | Claimed as tax deduction under Section 80C | Up to Rs 1.5 lakhs |
| Residential property purchasing | Claimed as tax deduction under Section 24 | Up to Rs 2 lakhs |
| Investment in businesses | Reduces net taxable profits | No limit |
| Purchase of assets | Reduces capital gains on the sale of the asset | No limit |
Conclusion:
Personal loans are now a game changer for many who are facing financial crisis. If you can get a personal loan from reliable lenders, it can also help you with your credit score to get easy financial benefits in the future. Also, to be able to repay your loans on time, you can use a loan repayment app.