This depends on what you take out the loan for. Generally the answer is no. If it’s for a wedding, holiday or renovations to the home you live in, or for a similar purpose, a personal loan would not be taxable. But, if you take out a personal loan that impacts your current or future income, you could potentially get a tax exemption on the interest. For example, if you use it for renovations to an investment property, you may also be eligible for a tax exemption. These are just a few examples. As everybody is different, it’s best to check with an accountant or financial advisor to clarify any tax implications before signing on the dotted line.