Features of Loans for Chartered Accountants in India
CAs may either join an existing firm or start their practice. Due to the rising number of experts in the chartered accountant field, several banks and banking firms have created unique loans for CAs alone. A CA’s job is to give advice, audit accounts, and generate reliable data and financial reports for its users. If the person intends to reach economies of scale, there is a demand for more working capital to expand the office, bring proper equipment and furnishings, and so on. These chartered accountant loans are intended to be issued with as little paperwork and processing as possible. Lending occurs on a digital platform, allowing for rapid loan payout.
Features of Chartered Accountants Loans
The following are the primary features of loans made available to chartered accountants:
- Loan Process That Is Quick and Painless
The whole lending process has been digitised and eased. Filling out a simple request form should take no more than 15 mins. You may also supply papers digitally. Personnel visit the client to verify the validity of the papers.
- Loan Without Collateral
The profession of a chartered accountant is one of service; the underlying company cannot be pledged as collateral. Thus, the loans given here depend solely on your academic qualifications and credit score. These are unsecured loans. Yet, as contrasted to personal loans, they are handled faster. Also, interest rates are lower.
- Paperwork Is Minimal
Although this is an unsecured loan, the paperwork needed is not extensive. You may submit the papers online, and banks and banking firms offer door-to-door checking.
- Flexible Repayment Choices
You might set a proper payback time depending on the kind of loan obtained. These loans often have a term of one to five years. However, they adhere to the EMI (Equated Monthly Installment) payment plan.
- Most banking firms and banks levy a processing fee of roughly 2%; however, others may charge a modest fee for their online comfort.
- Most banking firms offer loans up to Rs. 35 Lakh or Rs. 50 Lakh.
- Banks have reduced the process to the point that the loan may be issued within 24 hours.
- The loan might also be in the form of a fixed-term overdraft facility. In such a circumstance, the borrower is only obligated to pay interest on the monies removed from this account and only for the withdrawal time.
CA Loan Qualification
Although various lenders have varying eligibility needs, below is a summary of basic CA loan eligibility needs for chartered accountants:
- After graduation, you must have a degree of practice and at least four years of work expertise.
- At the time of loan maturity, you must be at least 25 years old and no more than 65 years old.
- You must earn a minimum of Rs. 1 lakh each year.
- Your company must have made a profit in the previous two years.
- It would be best if you had a high CIBIL score.
Chartered Accountants’ Loan Papers
Before a loan for chartered accountants may be approved, you must provide certain papers. The following is a list of the papers that are needed.
- Person Identity Proof- PAN Card of the Company/Firm
- KYC papers include an Aadhaar card, a voter ID card, a passport, a driving licence, and a PAN card.
- Aadhaar Card/Voters ID Card/Passport/Driving License as Proof of Residence
- Last six months’ bank records
- The most recent ITR, cash flows, and profit and loss statement for the last two years, as verified by a CA.
- ITR / trade licence as proof of business
- Other papers that the lender may request
Options for Chartered Accountants Loans
Aside from the one described above, a slew of additional items are available, particularly for experts in this field. These customised items are classified as:
- Chartered Accountant Personal Loan
These chartered accountant loans are related to the business loan offered, but their aim may not be to start a firm, and the interest rate may be much higher. Such loans are offered digitally, with reduced paperwork and sanctioning processes. Loan terms might vary from one to five years. Pre-approved loans are given to you with good credit and a lengthy history with the banking firm. These loans may also be expanded as Flexi-loans, with money made accessible as an overdraft facility. The loan sum might vary between Rs. 35 lakh and Rs. 50 lakhs. It varies from bank to bank. The rate of interest on these chartered accountant loans, which are only available to chartered accountants, will be lower than the interest rate on other types of loans.
- Chartered Accountant Business Loan
These unsecured loans are granted based on an applicant’s academic record and creditworthiness. External security or surety are not needed. When contrasted with other business loans, these loans have cheaper interest rates.
- Chartered Accountants Can Get a Home Loan
Chartered accountants are eligible for tailored home loans. The loan amount offered is up to Rs. 2 crores. This limit may differ from one lender to the next in certain cases. Tenure might vary between 10 and 30 years. To save on EMIs, the borrower might move from their current loan to a cheaper house loan. There are also add-on loans available. You may use value-added services like property search and dossier services.
- Chartered Accountants May Borrow Money Against Their Property
These are secured loans intended solely for chartered accountants. They have different interest rates depending on the property that is pledged. Aside from the property pledged, the chartered accountant’s earnings from practice or salary would be viewed. In addition, credit score is vital in all forms of loans. If these factors are met, attractive loan terms may be arranged.
CAs may profit from these chartered accountant loans in a variety of ways. However, to qualify for this loan, you must have prior experience and a professional degree in this industry. The alternative method needs just the bare minimum of documents and basic qualifying criteria, with no more action needed if you meet those standards. You may benefit from extremely cheap interest rates and large loan sums.
If you want to know more about loans for chartered accountants, visit Piramal Finance for related blogs and explore their products and services.
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