Chartered accountants are some of the most qualified professionals, this comes with a number of amazing benefits. One such benefit is easy access to professional loans at lower rates of interest. 

Professionals with esteemed degrees or extensive experience in a given industry are usually eligible for a professional loan. This can include professionals such as doctors, architects and chartered accountants. 

A professional loan is usually easier to obtain than a regular personal loan, this is because a professional degree or experience signals job security, which further signals reduced risk of defaulting. Hence, professionals are usually offered professional loans which are quite similar to personal loans in the sense that they do not require any collateral. However, the interest rates for professional loans tend to be lower than that of personal loans, depending on your credit profile. 

 Whether you are a freshly minted CA or an experienced CA looking to start or expand your firm, a loan for chartered accountant might be a great option for you. It’s often difficult to find the funds required to start or expand your business, however, this shouldn’t deter you from chasing your dreams. Availing a professional or personal loan for CA can be a great way to fund your business venture. Here are some reasons why you might need some extra cash: 

  • Expanding your existing business venture 
  • To meet operational and administrative expenses
  • Making your firm more technologically advanced to increase efficiency
  • To meet working capital requirements
  • Hiring new employees or training new employees 
  • Purchasing or renting office space 

Whether you need some funds to meet these expenses or any other business expenses, a professional has got you covered! Here are some of the benefits of availing of a professional loan: 

  • Immediate access to funds 
  • Fully digital application and management process
  • Collateral-free loans that are disbursed quickly 

Let’s now look closely at some of the features and benefits of a professional loan: 

Flexible Loan Amount 

Depending on your needs, you can get a professional loan that is as much or as little as you’d like. Professional loan amount thresholds vary vastly depending on a number of factors such as location, credit history, your relationship with the bank, the bank’s policies, the nature of the business venture, etc. However, you can get a professional loan of anywhere between ₹10 Lakhs and ₹10 Crores. 

Flexible Repayment Tenure 

Professional loans can be paid in EMIs so you don’t have to burden yourself with the repayments. Many banks and NBFCs also offer structured EMI options where you can customize your repayments to suit your financial position. If your income increases drastically during the repayment period, you can increase your EMI payments and vice versa. This gives you additional flexibility in your repayments. Generally, lenders will also give you anywhere between 12 and 60 months to repay your loans. 

Collateral-free Loans 

Collaterals can be cumbersome to deal with, particularly if you’re just starting out with your business venture. Professional loans are largely collateral-free, which means you don’t have to submit any security to avail of your professional loan. This makes the entire process simple and straightforward as you require very minimal documentation. 

Instant Availability of Funds 

Depending on your lending partner, you can get your professional loan amount credited to your account in as little as 24 hours. Many lenders offer instant approval, which makes the entire process very simple and effective. Most lenders also offer a fully digital process, which means that you needn’t visit bank branches with essential documents. 

Attractive Rates of Interest 

Since professional loans are offered with a certain level of trust in the borrower, given their educational and professional accomplishments, professional loans typically bear lower rates of interest than personal and other unsecured loans. Additionally, if your business venture has a good relationship with the lending bank, you can also negotiate further to lower the interest rates. 

Minimal Documentation 

Since a professional is an unsecured loan, you needn’t submit any collateral proof which can often be a lengthy and time-consuming process. Additionally, with more and more lenders digitizing their processes, you can also go through the entire professional loan process online, without having to take time off your tight schedules to accommodate visits to the bank. 

Now that we’ve taken a look at the features and benefits of a professional loan, here are some eligibility requirements that most banks and lending institutions would require (please note that these parameters may differ depending on the lender and your credit profile, it’s best to contact your lender for a detailed list): 

  • You’ll need to have had a certificate of practice that serves as proof that you’ve been practicing for at least 4 years post obtaining the qualification. 
  • You must be between the ages of 25 and 65. 
  • You must have a minimum yearly income of ₹1 Lakh. 
  • Your business venture must’ve made a profit for the past two years. 
  • You must have a good CIBIL score. 

A professional loan is a great idea for any professional that’s looking to start or expand their business venture. A professional loan is an unsecured loan, not very different from a personal loan. However, a professional loan is only given out to professionals who have relevant qualifications and industry experience. Given the barriers in place for obtaining a professional loan, qualifying professionals generally avail of professional loans quite easily while also getting better terms with regard to interest rates, repayment tenure, loan amount, and much more.

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