Contrary to popular belief, income tax benefits are not available only with secured loans like home loans. You can also avail of such benefits with a quick personal loan. However, the income tax exemptions are available only when you use the loan for specific occasions, viz. –
Home Construction or Purchase
Income tax benefits are available if you use a personal loan to construct or purchase a house. You can claim deductions up to Rs.2 lakh on the interest that you pay on your loan under Section 24(b).
Home Renovation
Personal loans can also provide income tax benefits if you use them to renovate your house. The maximum amount that you can deduct from your taxable income in such cases is Rs.30,000 under Section 24(b).
Higher Education
You also receive income tax benefits if you use your personal loan to fund higher education. Doing so helps you to avail deductions on the interest paid under Section 80E. There is no limit to the exemptions that you can avail. However, the benefits are only available for up to 8 years.
Business Investment
You can also claim income tax exemptions with a personal loan if you use it to invest in your business. In such cases, the interest that you pay on your loan is deductible from your taxable income and there is no upper limit.
Opt for a personal loan today if you seek to fund any of the above expenses. NBFCs such as Bajaj Finserv offer such loans with attractive features. For example, approval within 5 minutes, disbursal in 24 hours of approval, simplistic documentation process, only a few eligibility criteria, etc.
Personal loans are available both for salaried and self-employed individuals. While salaried applicants have to be between the ages of 23 and 55 years to apply, self-employed ones have to be within the age bracket of 22 and 55 years.
