While taking a business loan from any nbfc they take an insurance policy on the name of the borrower.
Just in case the borrower doesn't pay up the insurance can be invoked.
Can this be taken as business expense or will it go in drawings.
Kunal Mittal (FINANCE OFFICER) (580 Points)
10 August 2020While taking a business loan from any nbfc they take an insurance policy on the name of the borrower.
Just in case the borrower doesn't pay up the insurance can be invoked.
Can this be taken as business expense or will it go in drawings.
Asha Kanta Sharma
(Manager - Finance & Accounts)
(10524 Points)
Replied 11 August 2020
If the loan is for business and business pays for the Insurance then it is a Business Expenses.
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