A personal loan is appreciated for its usability in all possible situations. But, did you know that you could get a personal loan to pay income tax?
You can take a personal loan to pay income tax to the Internal Revenue Service (IRS) before the due date and escape from late payment penalty.
It is legitimate for you to borrow a personal loan to pay your taxes. Like any other personal loan, you need to have a good credit score as a mandatory factor to get through the application process.
The loan amount will be determined based on your debt service ratio. This ratio verifies if you can afford to pay the monthly instalments along with the other commitments you have.
If you consider a personal loan as a form of income, then you are wrong. A personal loan is a sum you are borrowing and you will be re-paying in monthly instalments to clear the loan, in addition to a percentage of interest. So, it is not considered as an income and is not applicable to calculate your income tax.
In a particular situation, where the money lender doesn’t want you to repay the loan, you will have to pay the tax for the borrowed amount. However, this may be a rare case.
|Bank Personal Loan||Interest Rate/Profit rate||Tenure||Processing Fees||Minimum Income Required||Max Loan Amount||More Info.|
|Maybank personal loan||From 6.5% p.a||2 to 6 years||Nil||RM30,000 p.a.||RM100,000|
|Bank Islam personal loan||From 4.99% p.a||1 to 10 years||Nil||RM2,000 per month||RM200,000|
|Ambank personal loan||8% p.a. to 11.99% p.a.||1 to 5 years||Nil||RM2,000 per month||RM100,000|
|RHB personal loan||From 8.18% p.a.||1 to 5 years||Nil||RM2,000 per month||RM150,000|
|AEON personal loan||from 0.8% p.m.||Up to 7 years||Up to 4% of the financing amount||RM800 per month||RM100,000|
|Bank Rakyat personal loan||from 5.09% p.a.||Up to 10 years||Nil||RM1,000 per month.||RM200,000|
|Hong Leong bank personal loan||From 9% p.a.||1 to 7 years||Nil||RM24,000 p.a.||RM100,000|
|CIMB personal loan||From 10.75% p.a.||Up to 5 years||Nil||RM2,000 per month||RM100,000|
Now that your question on personal loan is solved, it’s time for you to move ahead and know how to file income tax in a hassle-free way. Instead of complicating things with a paper and a pen, Malaysian government offers you a facility to file your income tax online. This makes the process simple especially to those who are filing their taxes for the first time.
The crucial part about tax payments is the accurate calculation. When you are sure how much tax you will be paying for the year, you can gauge the amount you can afford from your pocket and the amount you are falling short of. The amount you are short of can be arranged via a personal loan.
Just don’t forget to check for all the available options from different banks. Choose the right bank which offers the amount you are looking for at a low-interest rate and a sufficiently long repayment tenure. Otherwise, you will be burdened with an unaffordable monthly instalment.