Insurance policy with NBFC loan

A/c entries 144 views 1 replies

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.

Replies (1)

If the loan is for business and business pays for the Insurance then it is a Business Expenses.


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