Feature Image

HOW TO GET GREAT TAX BENEFITS ON THESE LOANS?

Posted on Wednesday November 11th, 2020

Loans can be a savior during an emergency and they don’t have to trap you in debt over a period of time, if you manage your finances well. Even, you can get tax benefits from certain kind of loans. It is true that you could get some great tax deals on your loans. As per the income tax, 1961, government has levied some tax benefits that have been provided been provided to the borrowers to reduce the burden of tax repayment. Let’s have a look on some common loan options that offer tax benefits.

Home Loan: It is one of the biggest loan liabilities that a borrower can avail. The loan quantum and tenure can be high on Home Loan but the tax benefits that a customer reaps on it are pretty good too. It can benefit an individual in two ways. Firstly, the amount paid towards the principal qualifies a tax deduction under Section 80C of the Income Tax Act while another benefit comes from a deduction in the amount paid as interest on the loan. If one has his/her spouse as co-borrower, the deduction can be claimed by each of you. The tax benefits on home loan can only be availed after the construction is completed.If you are planning to sell your home within five years from the date of taking loan then say goodbye to tax benefits.

Study Loan: The government has put various measures to promote higher education in youth and people have become aware to venture out of the country to study. Nowadays, the cost of professional courses such as medical and engineering is still sky-rocketing in India as well as abroad. This is when study loans come in handy as they pave the way to your future. To enjoy the perks of tax benefits on your Study Loan, the loan should be borrowed from scheduled financial institution. The tax benefits to the borrower availing an education loan for pursuing the higher studies come under the Section 80E of the Income Tax Act. This advantage can be availed for maximum of eight years or on the tenure, whichever is applicable.

Personal Loan: It is a type of unsecured loan that offers a plethora of requirements. This loan is a lot easier to obtain without stating the purpose of borrowing it. The most common reason behind applying a Personal Loan is medical emergency, debt consolidation, travelling, higher education and many more. Most of the people tend to miss out the tax advantages on it as not many know this benefit of loan. Generally, the principal amount and charges of interest paid towards loan cannot be deducted for tax exemptions but you can claim the benefits if you are using the borrowed amount for home renovation.

Now you have a guide that if the loans are handled responsibly, they can help you plan your finances in a better way. The tax benefits are the fantastic offers provided on Home Loan, Study Loan and Personal Loan. If you are looking for a loan from above mentioned categories, just give them a shot.


Feature Image

HOW TO ACCESS ONLINE LOAN FROM SHUBHBANK

Posted on Thursday January 23rd, 2020

Online Loans from ShubhBank can help you to come over those emergency situations where money becomes the prime necessity as they are fast in processing and disbursal and will be a great help in fighting financial emergencies. But getting approval on some loan depends on the eligibility of the applicant. Unsecured loans are collateral free loans which make the lender making the eligibility criteria bit firm as compared to secured loans. The risk of non-payment of loan amount is always high here so lenders make a strict eligibility check so that the risk of NPA can be minimized. Let’s how to access online loan by taking care of such factors:

Age
Age is the first criteria to meet for a loan applicant and must not be less than 21 years old at the time of applying for the loan and must not be more than 60 years old. The chances of getting loan increases when you are young because you will have fewer responsibilities towards your family and can extend your loan tenure till the maximum length.

Income
The income is the next checklist of the lender before approving the loan. The borrower must have a regular source of income and range may vary from lender to lender. Along with the same, the amount of minimum income also varies depending upon one’s profession i.e. salaried individual or self-employed.

Credit Score
Prior to approving any kind of loan, lenders do check the credit report of the borrower. The credit score ranges from 300 to 900. Therefore, score of 750 or above is considered Eligiblity For an Online Loan. Higher credit score reflects your disciplined behavior towards your previous loans. In the case of self-employed, the borrower must have 3 years of business continuity to become eligible for a loan. Frequent change in job area or business denotes instability in nature which is a negative remark for loan eligibility.

Employment History
The employment history is determined in the case of both salaried and self-employed individuals. If you are a salaried applicant, your credits in past will be recorded by the credit bureaus in your credit report. Any defaults in the past may make the lender believe that you may default in your next loan too. Therefore, lender may reject your loan application.

Repayment Capacity
The repayment capacity of a borrower is measured by a calculation as per the standards of Fixed Obligation to Income Ratio which is an indicator of smooth loan repayment. The lender evaluates your net monthly income and the total outgo of your existing loans including the applied one. If the total of all EMI’s is more than 50% of the income, the lender assumes that you may default. In such scenarios, it becomes difficult for you to Get Approval For an Online Loan.

Online loans from ShubhBank are very handy as you can avail them anytime and anywhere. But being eligible for a loan is required if you want your lender to approve the application. If you meet up the eligibility criteria and your documents are genuine, it just takes a few days to get approval and disbursement of the loan.