Are you facing any financial crunch? Are you planning to take a loan to address the situation? A personal loan can serve the purpose, but what if you need a high-value loan that runs into lakhs or crores, then you can apply for a Loan Against Property.
The best part about this loan is that you can fulfill your personal and professional financial needs. You can buy equipment or lease office space, purchase a home or renovate your bedroom and other spaces, finance your child’s wedding or his/her overseas studies. One more best thing is the Interest Rates of Loan Against Property are quite low, thus offers you tax benefits. However, the tax benefits will depend upon the principal of the loan.
If you use the money from a loan against property for business purposes, you can claim tax deduction according to the provisions of the Income Tax Act. Under Section 37(1), you can claim tax benefits on the interest of the loan, as well as incidental expenditures such as processing fees, document charges, etc. Remember, you can’t claim any benefit on repayment of the principal amount.
>Personal Requirement
If you use the funds for personal reasons, you can avail several benefits, but not tax benefits.
To know the other factors related to loan against property and how to get tax benefits, read: Tax Benefits Associated while Taking a Loan Against Property
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