What is the percentage of opting for a loan for the sake of IT implications? BHPian SoumenD said, “Buying a car without a loan is not possible for me. As most people are more salaried persons and I have 8+ years of old enough funds. In 2019 I took out a car loan. So I started payment and closed the loan for 1.5 years flat. I had paid 600 as closure charges. So there is no automobile or loan. It’s an urgent need for a car loan. There are many things that you need to look up when buying a car loan.
Rate of interest:
The rate of interest is significant for a car loan. Now we will look into scenarios.
Scenario 1:
The interest rates of car loans are 7.5 per cent. In this scenario, one payment is to be made, and the returns are between 5-6 per cent. These can be invested only via FDS or debt funds.
Scenario 2:
This scenario is investing in assets, and the interest rates for car loan are around 10 per cent. These interest rates are between 7.5-10 per cent. So investing in this scenario is also important.
IT angle:
For salaried persons, the interest rates are around 7.5 per cent. And for self-employed, the income tax falls between 30 per cent, and the taxable effective interest rates are 5.25 per cent, and it is deducted from 75 per cent. So here, taking a loan is beneficial.
The depreciation benefits are not included in car loans.CIBIL scores can help you in lowering interest rates and can help in the growth of the business. In private banks, you can use EMIs, and for repayment, you can use them as per your convenience in the banks.
