When you first start your own business, you have a lot of hopes and plans. All you want is for your business to do well, to bring in the best clients, and to grow. But sometimes it seems like money worries get in the way of these goals. For a business to grow, it needs a lot of money and a plan for how to spend it. But even if you plan everything, you might not have enough money.
One way to deal with this is to get a professional loan. If you are a management consultant, doctor, writer, photographer, or chartered accountant and you want to grow your business, you can apply for a professional loan.
Personal loans are easier to qualify for and take less time to get approved for than other types of loans. You can get these loans at the best interest rates.
Types of Professional Loans
Professional loans can be broadly divided into the following types:
- Loans for Doctors
Professional loans for doctors can help you with a lot of things. It includes setting up a new clinic or improving the existing one, getting new equipment, and more.
This loan has a lot of benefits, such as fast approval times, flexible payment plans, and low interest rates. This loan for doctors is for those who work in the medical field and need money right away. Doctors can easily get professional loans with flexible repayment plans and affordable EMIs of up to Rs. 45 lakh. Being a doctor, you are not required to do a lot of paperwork to get a loan.
- Loans for Chartered Accountants
If you are a CA, then you can get professional loans for things like working capital and other needs. It involves growing the business, paying off debts like rent and salaries, buying equipment, managing cash flow, and other things. You can also apply for a professional loan of up to Rs. 40.50 lakhs as a CA.
- Loans for Engineers
Engineers who work in information technology, mechanical, civil, chemical, electronics, or computer science can get a loan for up to Rs. 3.5 crores against their property. If you are an engineer, you can also get personal loans up to Rs. 2 crore with flexible payment plans.
Benefits of a Professional Loan
Some of the key benefits of a professional loan are listed below:
- You can get a lot of secured loans by putting your property up as collateral. But a great thing about a professional loan is that you can get one without putting up any collateral.
- It is easy and doesn’t require any paperwork. You can get a professional loan online. No paperwork is needed.
- The loan is given right away.
- There are different ways to pay off the loan early or in parts.
- You can get good rates and don’t have to pay any extra fees. There are many banks and Non-Banking Financial Companies (NBFCs) that offer professional loans.
Why is Professional Loan Required?
You may apply for a professional loan for many reasons. Here are a few reasons:
- Professionals like doctors can open their own private clinics. Since this would require money to start, a business loan for doctors would be the best option in this case.
- If you already have a place to practice, you might want to upgrade it. This may entail making improvements, looking for new spaces, and hiring more people. A professional loan can make it simple to get the money needed for these things.
- As a professional, it is critical to stay updated with new technologies taking place in the industry. A professional loan can be used to buy new equipment or machinery and keep up with trends in the industry.
Eligibility Criteria for Professional Loans
For professional loans, the eligibility criteria are very simple. Check the list given below:
- You should be between the ages of 18 and 65.
- You have already practiced your professions under licenses issued by local, state, or federal law.
- A copy of your professional certificate proving you are active in your profession.
- You must have a degree to prove that you are an engineer, lawyer, chartered accountant, journalist, management consultant, etc.
- This kind of loan is given to individuals, partnerships, businesses, and sole proprietorships.
When applying for a loan as a working professional, only basic and minimal documents are needed. The document requirements might differ from lender to lender. Here is a list of the common documents that a lender may ask for:
- Identity proof, which includes an Aadhar card, a PAN card, a passport, and a voter ID
- Address proof, which includes a passport, driving license, voter ID, electricity bill, or telephone bill.
- Bank statements for the self or business (including salary slips for salaried people) for the past 6 months.
- Income tax returns and Form 16 for the last 2 years.
- In the case of an existing practice, the profit and loss statement of the business.
- If you are setting up a new practice, copies of your professional degrees are required.
- In the case of a secured loan, documents pertaining to the property are to be given as collateral.
Professional Loans Interest Rate
Doctors and chartered accountants can get professional loans with interest rates as low as 11.99% annually. The processing fee also varies from 0% to 6% of the loan balance. You can use the personal loan EMI calculator. It gives you instant results with greater accuracy. It helps you assess the EMI and the loan EMI repayment plan for different tenures.
Things to Consider Before Taking a Professional Loan
Before deciding to take out a professional loan, there are a few key aspects to keep in mind.
- You should be aware of your financial needs.
- You should check the given loan interest rates.
- You should inquire about the special needs of CS, CA, or doctors’ professional loan eligibility.
- You should make use of the EMI calculator on professional loan websites.
You, as a professional, might have many loan options available. But, a professional loan stands out because it is best suited to your specific needs. It helps in meeting all types of expenses, related to your profession.
You can visit the Piramal Finance website for more information related to professional loans. Do not forget to explore their products and services and read the informative blogs posted on their website.
Also Read: Best Tips to Repay the Personal Loan Faster