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I have purchased a car for business taking bank loan repayable on equated monthly instalment basis. Can I capitalize the interest in the cost of the car?

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13y ago

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Is the Interest paid during construction stage to be capitalised?

yes


What is low interest loan?

The loan whose interest rate is low is called low interest loan. If you got a unsecured loan @ low interest rate then it would be low interest loan for you.


How can you reduce interest on high interest loan?

Repay the loan with the funds raised from a lower interest loan.


How do you calculate accrued interest on a loan?

To calculate accrued interest on a loan, you multiply the loan amount by the interest rate and the time period the interest has been accruing for. This gives you the amount of interest that has accumulated on the loan.


How can I avoid paying interest on a loan?

To avoid paying interest on a loan, you can pay off the loan in full before the interest accrues or choose a loan with a 0 interest rate if available.


What is the difference between a daily interest and a monthly interest loan?

The main difference between a daily interest and a monthly interest loan is how often interest is calculated and added to the loan balance. In a daily interest loan, interest is calculated and added to the balance every day, while in a monthly interest loan, it is done once a month. This can affect the total amount of interest paid over the life of the loan.


Can I apply for an interest free loan?

Yes, you can apply for an interest-free loan, which is a loan that does not charge any interest on the borrowed amount.


How much mortgage interest will I pay over the life of my loan?

The amount of mortgage interest you will pay over the life of your loan depends on the loan amount, interest rate, and term of the loan. Generally, the longer the loan term and the higher the interest rate, the more interest you will pay. You can calculate the total interest paid by multiplying the monthly interest payment by the number of months in the loan term.


Can payday loan interest be reported on your income taxes?

No. Deductible interest includes student loan, investment, and qualified residence interest. Payday loan interest is considered personal interest. Personal interest isn't deductible.


Is it better to get a high interest short term loan or a low interest long term loan?

It depends on how long you need the loan for and how long it would take for you to complete the payment. But in general a low interest long term loan means a higher interest payment over the life of the loan where as a high interest short term loan means less amount of interest payment over the life of the loan.


Where can one calculate interest of a loan?

The interest of a loan can be calculated by using the 'Loan Calculator' facility at the Bankrate website. One would need to know details, such as the interest rate and the loan term.


How does a secured loan differ from an unsecured loan?

A secured loan is a loan that some monetary interest (money or property of value) attached to the loan to insure its repayment. If the loan is not repaid, the monetary interest becomes the property of the loaning party. A unsecured loan does not have a monetary interest attachment.