You no longer have to worry about the lack of funds to start your new private chartered accounting practice. Professional and personal loans serve a host of occupational needs today, including those of a chartered accountant (CA). On many online platforms, including Finserv MARKETS, you can avail of loans for chartered accountants without any collateral. These unsecured funds are lent out to chartered accountants.
From constructing or acquiring office space to having liquid funds available as working capital, chartered accountants apply for professional loans for a variety of reasons. Any professional, including chartered accountants, who apply for a personal loan, need to meet the relevant conditions to qualify for loan disbursal.
Here is all you need to know about personal loans for chartered accountants.
Chartered Accountant’s Need for a Loan
What are the reasons for availing of a loan? For a chartered accountant, the reasons could be:
- To furnish an office: An office at the right place can increase the frequency at which a chartered accountant acquires new clients.
- To expand their business to new areas: Acquiring new clients is always a capital-intensive task.
- For working capital: Working capital is essential for the daily operations of an enterprise.
Features of a Loan for Chartered Accountants
Typically, loans for professionals, including loans for chartered accountants, have some features that may separate them from regular personal loans. The characteristics of a professional loan for CAs include:
- Loan amounts of up to Rs. 32 Lakhs.
- Zero collateral, for business or personal loans.
- Repayment tenures that range from 1 year to 5 years.
- Minimal documentation and quick loan disbursal.
- Value added services, like Financial Health Check Reports(FHCR).
Eligibility Criteria for a Loan for Chartered Accountants
All professional loans have some eligibility criteria to filter out those who qualify for the loan from those who do not. For availing a loan as a chartered accountant, these criteria are minimal. They are as follows:
- The applicant should be a citizen of India.
- The applicant needs to be a self-employed chartered accountant.
- The applicant must be aged between 25 years and 65 years.
- The applicant must have at least 4 years of industry experience as a self-employed chartered accountant.
Documentation for a Loan for Chartered Accountants
When you apply for any loan, your loan provider asks for documents that prove your citizenship, identity, address, qualifications, and income. Some loan providers ask for more documentation than others. However, most will ask for the following:
- Applicant’s Aadhaar card, passport, or driving license for KYC and citizenship proof.
- Applicant’s PAN Card for the name, age and address proof.
- Qualification degree for proof of industry experience in the field of chartered accountancy.
- Income tax returns (ITR) and/or Trade license for proof of business.
- Bank statements and/or canceled cheque for proof of income.
You may be asked to provide more documents so that the loan can be tailor-made to suit your needs perfectly.
Interest Rates on Loan for Chartered Accountants
The interest rate for Bajaj Finserv Business Loan for chartered accountants on Finserv MARKETS ranges between 14% p.a. to 17% p.a. The interest rates of these loans depend on a variety of factors like the following:
- Credit history: Your credit history throws light on your credit-worthiness.
- Debt-to-income ratio: Your debt-to-income ratio further clarifies your credit-worthiness. You can easily check your credit score for free online.
- Annual turnover: Annual turnover is the total sales generated from the business.
- Amount of time in operation or service: This is a variable as older ventures are generally considered more credit-worthy.
- Currently applicable credit policies of the lender: Other policies unique to the lender may also have an impact on the offered interest rate.
Charges for a Loan for Chartered Accountants
When availing a professional loan for business, it’s important to seek out a loan provider that is completely upfront about additional charges. This way you can be guaranteed transparency regarding all costs related to the loan.
Some of the charges for Professional Loans for CAs on Finserv MARKETS are:
- Processing fees, account maintenance charges, and foreclosure charges.
- Convenience fees and bounce charges.
- A monthly penal interest applied only on delayed EMI.
- Outstation Collection and part-prepayment charges.
- Stamp Duty and ECS (electronic clearing system) Return Fees.
Availing a loan as a chartered accountant can help fund your career dreams. Choose the Bajaj Finserv Loan for Chartered Accountants on Finserv MARKETS for instant loan-disbursal, minimal documentation, low eligibility criteria, guaranteed transparency with no hidden costs, and tailor-made plans. What’s more, with Bajaj Finserv Hybrid Flexi Personal Loan on Finserv MARKETS, get access to unlimited withdrawals, flexible part-payments, and flexible repayment tenure.
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