## Interest-Free or Concessional Loan from Employer
When an employer gives a loan at no interest or at a rate lower than market rate, the interest benefit is a taxable perquisite — subject to certain exceptions.
### Exemption Cases (No Perquisite)
| Condition | Treatment |
|---|---|
| Aggregate loan ≤ ₹ 20,000 | Interest fully exempt |
| Loan taken for treatment of specified disease | Interest fully exempt |
| Any other case | Interest fully taxable |
### Computation of Taxable Value
For each month of the previous year:
> Taxable Value (per month) = Loan outstanding at the end of the month × (SBI lending rate on 1st April of the PY – Actual rate charged by employer) / 12
The SBI rate used is the rate as on the first day of the relevant previous year (1st April), and it remains the benchmark for the whole year regardless of subsequent changes.