How Can a CA Avail of a Personal Loan in India?

CAs, or chartered accountants, are financial guides in layperson’s terms. A CA’s business is basically about providing services. They audit accounts, provide advice, and prepare reliable financial records and information for their clients. Some prefer to join firms or companies to work.

And others choose to work individually and have their own setup. The number of industries and establishments has increased with today’s growing economy. Both large establishments and self-employed individuals need the services offered by a CA.

This is why CAs are also looking forward to expanding their businesses. Hence, banks and other financial institutions have come up with loan offers specifically designed for CAs. They are also entitled to many personal loan offers. This article goes on to explain in detail how a CA can take advantage of this service.

Who can apply for a chartered accountant’s loan?

1. CAs who are self-employed
2. CAs who are salaried
3. CA companies and firms

What are the eligibility criteria for applying for the loan?

The eligibility criteria needed for availing the personal loan offers are:

1. One must be an Indian citizen
2. The minimum age should be 21 and at most 65
3. A minimum of 3 years of working experience is needed

What documents are required?

The documents needed for availing of this type of personal loan are:

1. ID proof is needed, e.g., a PAN card. 
2. Address proof is required, e.g., an Aadhar card.
3. Address proof of the business/company is needed, e.g., a rent agreement, electric bill. 
4. Financial documents are also required, e.g., a bank statement or an IT return. 
5. Also, proof of professional qualification is required. 

What features are available for the chartered accountants for the loan?

1. Quick processing of loans without any hassle: 

The entire process of applying for a personal loan has been digitalized. One needs to fill out a form where one needs to provide basic information. It hardly takes 10–15 minutes. Document submission can also be accomplished digitally. For the verification process, personnel visit the borrower to check the authentication of the provided documents. 

2. It is an unsecured loan:

A CA’s work is basically service based. Hence, the loan offered is based on the credit score and academic merits of individuals. These loans are therefore unsecured. In comparison to other types of personal loans, the processing for this one is quicker. That is why they offer a more favorable interest rate. 

3. Very less documentation:

Even though this is an unsecured loan, only a few documents are required. The ability to digitally upload documents is now available. Later they are verified. The process of verification is a door-to-door service that the banks or other financial bodies perform. 

4. Payment options are flexible:

The tenure for such loans is 1 year to 5 years. However, they follow the Equated Monthly Instalment (EMI) schedule. Depending on what kind of financing is availed, a preferable repayment tenure is chosen. 

• The processing fee, on average, is 2% across banks and other financial institutions. Certain banks and financial institutions might charge a minimal rate for providing online services. 
• Loans are provided by financial institutions and banks up to Rs. 35 lakhs or Rs. 50 lakhs. 
• The entire process has been made so that the loan is advanced within 24 hours. 

What is the process for applying for a personal loan for CAs?

1. One needs to either visit the nearest branch or the website of the chosen bank or financial body. 
2. One must check to make sure that they are eligible to apply for the loan. 
3. The loan application form must be properly filled out and signed by the customer. 
4. Loan details must be specified correctly, i.e., the tenure and total amount required must be given. 
5. Documents that are required must be scanned and uploaded.
6. Post verification, the amount gets transferred to the customer’s bank account, and they can now take advantage of the personal loan offers. 

What are the many reasons to take a personal loan for a CA?

Banks and financial institutions have designed personal loans for CA to meet their specific requirements. CAs or such firms prefer to take a loan to support and extend their setup and boost practice. 

A few reasons why this loan is being taken:

1. To purchase and establish a new and better office space. 
2. Many want to renovate the working space that they already have. 
3. Office infrastructure is also important to draw clients. As a result, some people decide to upgrade.
4. To scale up the operations.
5. To meet the requirements of working capital. 
6. For increased workload, they need to hire new staff, so for that purpose, a loan can be taken. 
7. To pay the overhead costs. 

Other than personal loans, what other loan products are offered to CAs?

The personal loans offered are quite similar to business loans extended. But, the interest rate is comparatively higher. Personal loans for CAs are offered digitally. The process of documentation and sanctioning is simplified. The other loan products offered are:

1. Business loans designed for CAs.
2. Home loans are designed for CAs. 
3. A loan was taken against property for CAs. 

Conclusion

Up until now in this article, all the details required to apply for a personal loan for CAs have been discussed. There are many personal loan offers and features that they get to experience, which have been explained. The eligibility criteria and application process have also been clarified. If a person needs a financial guide, then “Piramal Finance” is a good personal loan/financing option for buyers. They have great blogs, too, that are there to help people.