{"id":17023,"date":"2019-06-15T10:04:04","date_gmt":"2019-06-15T04:34:04","guid":{"rendered":"https:\/\/golocalclassified.com\/article\/?p=17023"},"modified":"2019-06-15T10:04:12","modified_gmt":"2019-06-15T04:34:12","slug":"how-to-use-a-personal-loan-to-pay-your-taxes","status":"publish","type":"post","link":"https:\/\/golocalclassified.com\/article\/how-to-use-a-personal-loan-to-pay-your-taxes\/","title":{"rendered":"How to use a personal loan to pay your taxes"},"content":{"rendered":"<p><span data-contrast=\"auto\">It\u2019s that time of the year again when you&nbsp;<\/span><span data-contrast=\"auto\">have to<\/span><span data-contrast=\"auto\">&nbsp;start thinking about paying the taxes you owe to the government. Ideally, you should have started looking into this at the start of the previous financial year itself.&nbsp;But,&nbsp;many people fail to do this.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<p><span data-contrast=\"auto\">If you too have forgotten to save up money to pay off your taxes, you need to make sure that you come up with the money soon. The penalties for not paying taxes are quite high<\/span><span data-contrast=\"auto\">. If you don\u2019t pay your taxes&nbsp;<\/span><span data-contrast=\"auto\">by the due date, the Income Tax (IT) Department can slap you with a fine of up to the amount you owe. That\u2019s double the amount you originally owed.&nbsp;<\/span><span data-contrast=\"auto\">&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<p><span data-contrast=\"auto\">So, what can you do in a situation like this? Well, one way to pay off these dues is to take a personal loan. But is this a feasible option? Read on to find out how a loan like this can help you get out of a tight spot.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">Why take a personal loan?&nbsp;<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n<p><span data-contrast=\"auto\">One thing is for sure; you don\u2019t want to mess with the government. You don\u2019t want to get into the bad books of the tax authorities and be known as a tax defaulter. It\u2019ll only make things worse for you later.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<p><span data-contrast=\"auto\">So, how exactly can a personal loan help? To understand this better, let\u2019s look at what this loan is<\/span><span data-contrast=\"auto\">, how it works,<\/span><span data-contrast=\"auto\">&nbsp;and how you can get&nbsp;<\/span><span data-contrast=\"auto\">one<\/span><span data-contrast=\"auto\">.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<p><span data-contrast=\"auto\">A personal loan is a sum of money you can get from a lender. There are hundreds of such loan options available in the market. <strong>Here are some features of these loans:&nbsp;<\/strong><\/span><strong>&nbsp;<\/strong><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">You don\u2019t have to put up collateral to get them.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">They are granted based on your income, credit score, and a few other factors.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">You can use the money to whatever financial end you see fit.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">You can choose from various options.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Their interest rates are lower than those charged by the government for tax payment default.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The application process is simple<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">The lenders usually process your application within a day or two.&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">You can repay the amount you borrow in equated monthly instalments (EMIs).&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Some lenders offer repayment tenures of up to 7 years. The usual period is 5 years.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<h2><b><span data-contrast=\"auto\">How a personal loan can work for you&nbsp;<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n<p><span data-contrast=\"auto\">Let\u2019s now delve a little deeper into some of the features. This will offer some insight into how this kind of loan can be beneficial to you.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">There are multiple options:<\/span><\/b><span data-contrast=\"auto\">&nbsp;Almost every lender in the country offers personal loans. Both banks and non-banking financial companies (NBFCs) offer these loans. But when you\u2019re spoilt for choice like this, choosing an option can sometimes be a confusing task. That\u2019s where online loan aggregators come into the picture. They give you all your eligible options on your screen, right in front of you. No more running around to find the right lender. Simply click a few times, enter a few details, and you get your options. All you need to do is to compare them and select the one that suits you the best.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Use it for any personal need:&nbsp;<\/span><\/b><span data-contrast=\"auto\">Specific loans can only be used for specific purposes. For example, you can use a home loan only to buy a home, or a car loan to only buy a car. But you can&nbsp;<\/span><span data-contrast=\"auto\">use&nbsp;<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">&nbsp;<em><strong><a href=\"https:\/\/www.bankbazaar.com\/personal-loan.html\">personal loan for any purpose of your choice<\/a><\/strong><\/em>,&nbsp;<\/span><span data-contrast=\"auto\">as long as<\/span><span data-contrast=\"auto\">&nbsp;it\u2019s legal. That\u2019s the beauty of it; no restrictions. However, do use it wisely.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Choice of interest rate:&nbsp;<\/span><\/b><span data-contrast=\"auto\">Some lenders may even allow you to choose the type of interest rate you want. There are two types \u2013 a floating rate and a fixed rate. A floating interest rate changes when the market rate changes. A fixed rate remains the same no matter what. Borrowers usually tend to choose floating rates because they generally are lower than fixed rates.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Choice of tenure<\/span><\/b><b><span data-contrast=\"auto\">:<\/span><\/b><span data-contrast=\"auto\">&nbsp;Imagine borrowing a sum of money and then having the option to pay it over time at your convenience. That\u2019s exactly what you get with a personal loan. You can take up to five years to repay what you borrow. Some lenders even give you up to seven years.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">No collateral:<\/span><\/b><span data-contrast=\"auto\">&nbsp;Perhaps the best news of all. You don\u2019t have to offer collateral or security of any sort. Simply fill in the application form, submit it, and wait for your loan to be approved.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">That being said, there<\/span><span data-contrast=\"auto\">&nbsp;has to be a catch, right? After all, why would anyone give out money \u201cjust like that\u201d? True, there is a catch. But it\u2019s not something impossible. These loans are given out based on whether you qualify for them or not. And how do you qualify? Keep reading to find out.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">How you can qualify for a personal loan<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n<p><span data-contrast=\"auto\">Lenders offer these loans based on a few criteria. You&nbsp;<\/span><span data-contrast=\"auto\">have to<\/span><span data-contrast=\"auto\">&nbsp;fulfil some or all of them (depending on the lender) in order to get the loan. Here are some of the criteria that lenders require you to fulfil:&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Age&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Monthly income&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Debt-to-income ratio&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Credit score&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The&nbsp;<\/span><span data-contrast=\"auto\">particulars of<\/span><span data-contrast=\"auto\">&nbsp;these criteria can vary from one lender to another.&nbsp;<\/span><span data-contrast=\"auto\">Now&nbsp;<\/span><span data-contrast=\"auto\">take a&nbsp;<\/span><span data-contrast=\"auto\">look<\/span><span data-contrast=\"auto\">&nbsp;at&nbsp;<\/span><span data-contrast=\"auto\">them&nbsp;<\/span><span data-contrast=\"auto\">in detail:&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Age<\/span><\/b><span data-contrast=\"auto\">&nbsp;\u2013 You&nbsp;<\/span><span data-contrast=\"auto\">have to<\/span><span data-contrast=\"auto\">&nbsp;be at least 21 years old to apply for a loan. Lenders also have a maximum age limit<\/span><span data-contrast=\"auto\">&nbsp;at the time of loan maturity. This is around 60 years of age.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Monthly income<\/span><\/b><span data-contrast=\"auto\">&nbsp;\u2013 You need to have a certain minimum monthly income to qualify for a loan. For example, a lender may not give you a loan unless you earn at least Rs.25,000 a month. This minimum income allows lenders to gauge your repayment capacity. Therefore, the higher the income you earn, the larger the amount of loan you can apply for.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Debt-to-income ratio<\/span><\/b><span data-contrast=\"auto\">&nbsp;\u2013 Your debt-to-income ratio is an indicator of how much of your monthly income is going towards paying off existing loans. It compares your current EMIs with your current monthly salary. The higher this ratio, the lower your chances of getting a large loan quantum. Your objective should be to pay off existing debts as much as possible before applying for a personal loan.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Credit score<\/span><\/b><span data-contrast=\"auto\">&nbsp;\u2013 Perhaps the most dreaded criteria, your credit score indicates how responsible you are when it comes to repaying debts. If you have a history of repeatedly not paying your EMIs and credit card debts on time, your score will plummet. If you are paying them off regularly and using only a small portion of your credit each month, your score may be good or even excellent. An excellent score has the best chances of getting a loan approved&nbsp;<\/span><span data-contrast=\"auto\">with<\/span><span data-contrast=\"auto\">out<\/span><span data-contrast=\"auto\">&nbsp;any hassle.&nbsp;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ul>\n<h3><b><span data-contrast=\"auto\">So, should you take a personal loan to pay your taxes?&nbsp;<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h3>\n<p><span data-contrast=\"auto\">As we\u2019ve just seen, qualifying for this shouldn\u2019t be too hard, taking the loan is easy, and it can help you pay off your&nbsp;<\/span><span data-contrast=\"auto\">tax dues right away.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<p><span data-contrast=\"auto\">But you should still see if other payment options can serve you better. For example, if you can pay off the&nbsp;<\/span><span data-contrast=\"auto\">amount<\/span><span data-contrast=\"auto\">&nbsp;with your next monthly income, consider using your credit card to pay your taxes<\/span><span data-contrast=\"auto\">&nbsp;right away<\/span><span data-contrast=\"auto\">.&nbsp;<\/span><span data-contrast=\"auto\">This way you get a month to pay your credit card dues without paying any interest.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n<p><span data-contrast=\"auto\">All said and done, the aim is to pay off your taxes using the cheapest and the most convenient way. Credit cards can help. But if the tax amount is too large or if you won\u2019t be able to repay the card dues with your next salary, taking a personal loan just might be your best bet.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s that time of the year again when you&nbsp;have to&nbsp;start thinking about paying the taxes you owe to the government. Ideally, you should have started looking into this at the start of the previous financial year itself.&nbsp;But,&nbsp;many people fail to do this.&nbsp;&nbsp; If you too have forgotten to save up money to pay off your [&hellip;]<\/p>\n","protected":false},"author":13299,"featured_media":17022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[439,1532,1531],"class_list":["post-17023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-apply-for-personal-loan","tag-online-personal-loan","tag-personal-loan"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/posts\/17023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/users\/13299"}],"replies":[{"embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/comments?post=17023"}],"version-history":[{"count":0,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/posts\/17023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/media\/17022"}],"wp:attachment":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/media?parent=17023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/categories?post=17023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/tags?post=17023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}