There is no doubt in the fact that small loans online have become a popular solution for bridging temporary financial gaps. With their easy application process and instant disbursal, they offer a lifeline during unexpected situations.
However, when the question arises whether these loan types help reduce your tax burden, there are a lot of myths! Today, in this article, let’s dive into the world of such loans and explore their potential impact on your taxes in India.
What is a small personal loan? Why are people inclined towards it?
These are types of unsecured loans which are primarily based on the creditworthiness and income degrees of potential borrowers who are planning to avail such loans.
Moreover, they are flexible and can be used for a wide variety of events, including shopping for the latest smartphone, sudden medical emergencies, family holidays, or maybe domestic maintenance.
Small Loan Online is relatively quick! Remember that in a home loan or a car loan, in this type of loan, you are not bound to purchase a particular item.
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No Collateral required
One of the top reasons why more and more people are inclined towards this loan is that they don’t require any collateral.
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Credit score improvement
Once you have taken advantage of this facility, make sure that you repay it on time to enhance your financial health. Moreover, even before taking advantage of it, ensure that you have a proper repayment plan of action in mind.
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Easy Access
There is no need to step out of your comfort zone. Just download our application on your smartphone, and you are more than good to go. Once you apply for an online small loan, you save a lot of time, money, fuel, and effort.
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Flexible Repayment
Stashfin offers complete flexibility when it comes to the repayment of such loans. It provides a period of up to 36 months (3 years), which gives the users a stress-free way of dealing with finances and planning accordingly.
Do Small Online Loans Aid in Taxes?
The answer is no! It is a significant misconception that such loans aid in taxes. In our country, deduction is offered for specific loan types, but not all loans qualify. The prime key lies in how you utilize the borrowed funds.
For example, this type of loan is used for property purchase and allows tax deductions on the interest paid. Similarly, business loans can offer tax benefits on the interest component.
However, Small Loan Apply Online are meant for generic purposes and don’t fall under any specific category with direct tax advantages.
Why Stashfin?
If you are planning to use such a facility, you need to understand how Stashfin can help you. We offer such loans without charging interest, which means that you have to pay us back the same amount you initially borrowed from us.
Moreover, our application is available for both Android as well as iPhone devices. You can even explore our website to apply. Here is a step-by-step guide on how to apply from our app:
- Download the app from the Play Store/App Store
- Sign up using your mobile number
- Add your details to check your credit limit
- Complete KYC!
With just four such easy steps, you can apply for an Instant Loan Approval with us. Once it is approved from our end after scrutinizing your application, the amount will be credited to your account within no time.
Online Small Personal Loan Eligibility Requirements
- Aadhaar Card
- PAN Card
- Last six months, complete bank statements
- Indian Citizen residing in India
- Age above 18
- Current Employment proof
- Monthly salary of Rs 15,000/-
- Bank Account
- Valid Identity
- Address Proof
Final thoughts
Instant online loan, while convenient, don’t directly offer tax benefits in India. However, using the borrowed funds for specific purposes like tax-saving investments or business expenses can create an indirect tax advantage. Download our app today and Get Small Loan Online!