Whether you are just setting up a practice or have been in business for a few years, a Chartered Accountant (CA) loan may help you with meeting your initial business expenses or provide funds for expanding it. A number of different loan options are available exclusively for Chartered Accountants (CA). Knowing more about them will surely help you save time, money and effort.
To begin with, Bajaj Finserv offers customised CA loans for specific needs. These are:
● Personal Loan for Chartered Accountants
● Business Loan for Chartered Accountants
● Home Loan for Chartered Accountants
● Loan Against Property for Chartered Accountants
At every stage of your life, you need funds to turn your dreams into reality. Marriage or your children’s higher education are important life-events that deserve to be given priority. A Personal Loan for Chartered Accountants can help you meet such expenses.
For example, Bajaj Finserv offers personal loans for CAs up to Rs.35 lakh with no collateral required. These loans are disbursed in 24 hours and its Flexi Loan facility enables you to utilise as much of the pre-approved amount that you need with the interest payable only on the amount utilised. Additionally, Bajaj Finserv provides pre-approved offers on a range of financial products. All you need to do is provide a few details to know your pre-approved offer.
A Business Loan for Chartered Accountants helps you renovate your office, implement technology solutions or manage cash flow during tax filing season. These loans offer high loan amounts with no collateral required, minimal documentation and are dedicated products for professional CAs.
Meanwhile, a Home Loan and Loan Against Property for Chartered Accountants can be used to renovate your home, buy a new property, and more. With loan amounts of up to Rs.2 crore, door-step service and competitive interest rates, you can expand your team, office infrastructure or fund your
child’s overseas education.
Here are some things to remember when taking a CA loan:
1. Eligibility criteria:
CA loan eligibility criteria may vary slightly from company to company. It is important to be aware of the various requirements in terms of financial ability and repayment capacity.
Your CA practice should be at least 3 years old to be eligible for Charterted Accountant loan. Of these, you should have earned a profit for at least 2 years. You should either own a house or property personally or should have property belonging to your parents.
During processing, you will be required to furnish proof of repayment on an existing loan to determine your credit history. You should have a minimum turnover of a certain amount to be eligible. The amount differs depending upon the requirements of the lender.
Lenders require a set of documents to decide whether an application meets their credit-worthiness criteria. These include but are not limited to your Certificate of Practice (COP), KYC of the professional, PAN Card of the professional, Business Financial Statement, Receipts of the Business, Audit Report, Income Tax Return (ITR), and co-applicant details.
3. Credit history:
To reduce the risk of Non-Performing Assets (NPAs), NBFCs are required to perform the necessary due diligence before clearing loan applications. Professionals such as CAs need to be well aware of the implications of their credit report i.e., CIBIL score on their loan approval prospects.
Good credit history makes you eligible for a higher loan amount while a low rating has negative consequences for your application. A minimum credit score above 650 is required for a CA loan.
4. Interest rate:
Interest rates for professional CA loans range from 13-17%. Before you apply, it is necessary to look at the prevailing base rate and get CA loan interest rate quotes from multiple lenders. This will help you reduce your monthly outgo and ensure that the cash flow of your CA firm is not affected.
It also helps to consider your other loan obligations in relation to the amount you are applying for. This will help you self-assess whether you can meet the repayment schedule of all those loans.