Everything You Need to Know About Chartered Accountant Loans
Chartered Accountant Loans can be the last and the best resort to a CAs financial needs. professional loan for CA provided by many lenders. It has some modified terms and conditions that make it ideal for the chartered accountants.
Since it is a professional loan, it can be categorised under unsecured loans due to the lack of security interim.
Chartered Accountant Loans have an easy application process; you can apply for a CA loan from any lender. However, it is recommended that you apply for a chartered accountant loan with a Non-Banking Financial Company (NBFC), as they provide loans with flexible terms and conditions with the lowest possible interest rate.
Chartered Accountant Loans have other benefits as well that you can consider when applying for a Chartered Accountant Loan.
Benefits of a Chartered Accountant Loans:
- Higher than normal loan amount: For first timers, it is important that you choose the lending product that offers the amount you need. When applying for a personal loan people are mostly dissatisfied with the amount limit offered by the lenders. To which people often opt for mortgage loans that can trouble you for life. To make loaning a better experience for CAs, the lenders introduced Chartered Accountant Loan that has a maximum loan amount limit of INR 30 Lakh whereas personal loan only offers INR 25 Lakh.
- No security interim: Most of the loans require security interim for approval, the security interim serves as a guarantee of repayment from the applicant. This is not the case with the CA loans. Since they are unsecured loans, the applicant does not need to offer any security interim to the lender for the loan approval.
- Instant loan approval: Loan applications can be time-consuming, most of the lending products can take up to 15 days to get the amount sanctioned. In Chartered Accountant Loans, the loan application takes only 2-3 days to get approved, and within 3-5 days the loan amount is sanctioned in the account of the applicant.
All these benefits can be alluring, but it is important that you consider the following things before you apply for a loan to avoid a loan rejection.
Things to keep in mind when applying for a CA Loan:
- Credit score: Chartered Accountant Loans are unsecured loans and hence do not require any security interim for the loan approval. For repayment guarantee, the lender refers to the credit score of the applicant. The credit score is points given to an applicant based on his previous loan repayments. The ideal credit score for loan approval is 750 points. If you have a score below 750 points, you can apply for Chartered Accountant Loans through the NBFCs as they provide loans also to applicants with a lower credit score and even offer better perks.
- Eligibility criteria: The lenders try to be as secure as they can while lending to applicants that do not have credit report (basically first-timers), the lenders decide their credibility with the CA Loan Eligibility Criteria. The eligibility criteria are made up of parameters that include factors like income proof, job stability and Certificate of Practice (COP). To get your loan approved, you need to qualify the eligibility criteria.
- Terms of the loan: When applying for a CA loan, you need to be very careful. Even a minute negligence can trouble you during the time of repayment. You need to check the tenor of the loan, interest rates and charges that will be incurred for the loan. You also need to pay close attention for any fine prints that are usually ignored by the people.
When shopping for a loan, it is often advisable that you apply for a loan that has terms and conditions that suit you well. Hence, it is recommended for CAs to apply for a Chartered Accountant Loan rather than a regular personal loan.
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Category: Loans
