Tax season is here, and working people are scratching their heads after receiving the "green bomb". Different tax loan products have also appeared on the market to help everyone cope with tax payments or other financial management needs. What is the difference between tax season loans and general personal loans? What should I pay attention to before applying for a tax loan? If you want to borrow a tax loan to make a time deposit, is there any idea? Deconstruct it for everyone now!


What is the difference between a tax season loan and a regular personal loan?
A general personal loan refers to applying for a loan from a financial institution in an individual's name, without the need to use personal assets as collateral. The bank or financial institution will determine the interest rate, loan amount and repayment period based on the applicant's needs and credit history. Generally speaking, Applications will be accepted throughout the next year.


Tax season loans are actually a type of personal loan. As the name suggests, they help working people pay taxes. Banks or financial institutions will also launch tax season loan discounts during the tax season (usually September to April of the following year). In order to attract customers, the interest rates of some tax loan products may be lower than other general personal loan programs, but the final interest rate will also be affected by the loan amount, repayment period and the applicant's credit rating.


What should you pay attention to when applying for a tax loan?
Although tax loans are nominally used for paying taxes, there are actually no specific restrictions on their use. Therefore, some people will take advantage of the tax loan discounts and choose to apply for tax loans for capital turnover, starting a business, installment consumption, etc. However, when applying for a tax loan, you need to pay attention to the following points:

What is the actual annual percentage rate (APR)? Are there any strings attached?
If you want to know the actual cost of borrowing money, you must first learn to look at the annual effective rate (APR). In addition to the original loan interest, the actual annual interest rate also takes into account rebates, handling fees, administrative fees and other charges. Therefore, you can use the actual annual interest rate to compare the borrowing costs of different loan products. At the same time, you should also pay attention to whether there are other requirements for promotional offers, such as minimum loan amount, specific repayment period, additional handling fees for early repayment, etc., and then choose the one that suits you best. own loan product or program.


What is the monthly repayment amount? Is the longer the repayment period the better?
Before applying for a loan, it is best to calculate your monthly income, expenses, savings, etc., and then evaluate your repayment ability to avoid excessive borrowing. Although choosing a longer repayment period can reduce short-term financial pressure, the actual interest expense will also increase accordingly, so remember to carefully calculate your repayment and risk-taking ability. The most important thing is to remember to repay on time to avoid Bear additional financial costs and affect personal credit history.


Is there any idea of using tax loans to make time deposits?
The actual annual interest rate of some tax loans is relatively low, so some people will consider using tax loans as time deposits to earn interest differentials. However, placing a loan in a fixed deposit will actually lock up the funds, which means you may have to use extra cash every month to repay the loan; if the market conditions are not as expected, there is a chance that the principal will be lost and you will have to pay interest, so that the gain outweighs the gain. So remember to set aside emergency funds to ensure that repayments and daily life are not affected.