Availing a Chartered Accountant Loan can help elevate your career to greater heights. You can even set up your own practice or expand an existing CA business. The following are some of the important things you should know before applying for a CA loan:
Maximum loan amount: Every lender has a maximum loan amount to offer. The fundamental step is to check if your need matches their offer.
Purpose of loan: you have to first be very clear about what you want to fund with the loan for chartered accountants, be it to rent or buy a property or equipment, hire staff, etc.
Rate of interest: Needless to say, low rates mean lesser monthly expenditure. Further, the interest rates help you calculate the EMI (Equated Monthly Installment).
Repaying capacity: the EMI may take up to 40% of your monthly income, so it is advisable to ensure sufficient provisions and funds for repaying on time.
EMI schedule: many lenders offer the flexibility of letting you choose your EMI schedule. You can mark down your EMI dates to prevent any defaults.
Tenor: the tenor of this loan normally ranges from 12 to 60 months. The borrower can choose a suitable tenor after accessing his/her financial state.
Eligibility: the loan eligibility calculator accessible online is a great tool to evaluate the amount you can borrow. The CA loan eligibility criteria of a particular borrower depends on factors like income, credit score, etc.
Documents: the document checklist for a Bajaj Finserv loan for chartered accountants includes salary slips, bank statements, educational certificates, identity and address proof, etc.
Penalties and charges: you might be charged a minimal processing fee. However, penalties may be levied on defaults, late payments, and so on.
Pre-approved offers: Lenders, in their attempt to reward the loyal customers, often offer lucrative deals with lower interest rates.
Flexible loans: You can get the loan with business line of credit service. You can make multiple withdrawals and deposits. The interest is charged only for the amount utilized. You repay the principal at the end of the tenure.
Easy processing: A chartered accountant Loan does not require a collateral or guarantor. Hence, you can expect a quicker processing time and easy documentation.