I am a doctor by profession. I need to purchase a machine for clinic. For that either I can take loan or can take the amount from overdraft account with Axis Bank against my fixed deposits. Interest wise OD will be cheaper to me. What do you suggest?
Whatever interest you have to pay to the bank can be shown as expense in your profit and loss account which will give you taxation benefit. This benefit will not be there if you borrow a loan fro the machine. For that reason, taking it from overdraft account will be more beneficial.