Credit Wisdom

How to Save on Tax with a Personal Loan

Category: Personal Loan

Personal loan is a good loan. How? Well, it cares for you and helps you to come out of your problems. Whether you want to accomplish your dreams or you want to save more money on Taxes, personal loan is there for you.

Income-Tax is a common pain in our live; after all, nothing is certain in this world except death and tax. Death is inevitable but not the tax as there are sundry options available out there for tax-saving, like investing in tax-saver funds, insurance, FDs etc. And when it comes to financial year end filing of Tax returns, often we are short on the investments which could save us money on Taxes. In these times, Personal Loan comes in as a smart option where one can avail a loan at as low as 11.99% P.A. and invest the money in equity linked or Tax saving funds which can fetch a return of upto 18% P.A. --- now that's a sumptuous saving, right?

PERSONAL LOAN is an unsecured loan with fast processing option, which means you can attain this loan quickly and that too without any collateral. These features make personal loan ideal for opting funds, moreover, there are no taxes applicable on personal loan.

Additionally, Personal loans are not considered to be a part of your income, which is why personal loan is also not considered as a taxable fund when you file income tax returns.

Not just that you’ll save with personal loan, you can even use your loan to earn more, if you wish to do so. There are various Tax-Saver Bonds available out there; you can invest your loan amount in those Bonds, which will make you money along with the tax-saving. It’s win-win situation for you, where you can save and earn, at the same time.

Personal loan is an amazing instrument for tax-saving if you use them wisely. Not just for tax-saving, you can also use personal loan to have a dream wedding or to explore your dream destination because it’s a multi-purpose loan. Personal loan is a loan for all your needs and it’s a good loan if you use it wisely for the right purpose.