What is a Beneficial Loan?

The term Beneficial Loan is used in every case when an employee receives a loan from the employer which interest rate is not charged or it's significantly lower then the official rate. There's a difference between the two, the charged interest rate means that's it taxable while the one below of the official rate is tax free. The beneficial loan is given out for a short term and the borrower has to pay on a monthly basis. If you manage the get it then the interest rate is lower then the actual market price and you don't have to pay taxes on it.