Hello. The GST on personal loan closure is 18 percent. Personal loans mostly come with the ease of prepayment, but there are charges related to making a prepayment, too. As this is a service lenders offer borrowers, the loan closure is taxable. I would recommend you carefully go through the loan agreements to understand any indirect implications of GST. I will share more details below.
What is the GST on Personal Loan Preclosure?
As I said above, the GST on loan closure is 18 percent. Let me give you a simple example to help you understand the charges better. Let us suppose the lender imposes a 2 percent prepayment fee on the personal loan amount, which is Rs. 50,000. Now the prepayment fee would be Rs. 1,000. Adding 18 percent GST, the total payable preclosure fee would be Rs. 1,180, where Rs. 180 has been added as 18 percent of Rs. 1000.
This is all I have to share with you regarding the GST for personal loan closure. I hope you find it helpful.
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Authors Of The Question
What is GST on Personal Loan Closure?
narul
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2 days
2025-01-01T19:06:36+00:00 2025-01-01T19:06:37+00:00Comment
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