Professional Loan for Lawyers/Advocates

Loan for Lawyers - Eligibility, Interest Rates, How to Apply, Documents Required & Benefits

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If you are a self-employed advocate willing to start your own practice, you need to be mindful of career-specific loan facilities. Today most lenders offer loans for lawyers. This can help you get the most optimal loan to suit your needs. Let’s learn everything about loans for advocates.

What are the Interest Rates and Charges for an Advocate Loan?

Interest rates start from as low as 10.50% with a minimal processing fee not exceeding 1-3% of the borrowed sum. Lending institutions offer both secured and unsecured loans to lawyers for a range of purposes. This can be to help an advocate fund their work-related trip or to make up for their immediate office setup costs.

For detailed information on lawyer loan interest rates, you may look for relevant information on your preferred lender’s website.

What are the Eligibility Criteria?

To avail of a professional loan for advocates in India, you must fulfil these criteria:

You should have a law college degree or diploma certificate.
You must be an Indian resident.
Your age while applying must be between 21 years and 65 years.
You can be a non-salaried working professional, preferably with a few years of professional experience.

What are the Documents Required to Apply for Professional Loans for Lawyers?

Given below is the complete list of documents that you will need while requesting a lawyer's loan:

Identity proof (Aadhaar card, PAN card, and passport)
Address proof (Utility bills, ration card, and Aadhaar card)
Your business’ bank statement for the previous 6 months
Profit and loss statements of the business
Proof showing lease of property/property ownership (if applicable)

What are Some Features and Benefits of Professional Loans for Lawyers?

Here are some key features of a loan for advocates:

These Are Mostly Term Loans

Ideally, these loans must be paid in regular instalments without faltering. These facilities are only extended as long as you are associated with the underlying profession. The interest rates changed on these loans can be either fixed or floating in nature.

Generally, term loans are meant to help individuals set up small-scale businesses but they may be used to fulfil personal wishes as well.

It Can Help to Set up a Venture

This loan may be used to pay for the acquisition of machinery, computers, furnishings, vehicles, and office supplies. It may so happen that a lawyer might find it difficult to arrange for the upfront costs, without financial aid and thus may feel discouraged to set up his firm. Therefore, these loans empower them to start something of their own.

Professional Loans Pay off Educational and Travel Expenses

Often you may feel the need to organise an educational seminar at a particular location to spread legal awareness. For those reasons, you may apply for a loan by comparing the schemes of reputed lending institutions. In addition, if you require travelling abroad to grasp better career opportunities then you may apply for such loans too.

Most Lenders Prefer Experienced Candidates

Lenders generally prefer lawyers with at least 2-5 years of sound professional background. This precaution is to mitigate risks of bad debts and complications that may arise if the borrowers do not make timely payments.

Typical Loan Repayment Duration is 60 Months

Most of the lenders set the maximum allowable loan tenure as 5 years. During this repayment course, you may opt for a 6-month holiday period too. For this window, the borrower gets relief from making timely EMI payments.

Can a lawyer get a loan?

Yes, lawyers can get a loan. However, they must satisfy the eligibility criteria set by the preferred financial institution to get the loan sanctioned.

Do lawyers get a home loan?

Yes. Based on their eligibility, they can get a home loan.

What is the interest rate on lawyer loans?

Interest rates can start at 10.50% and can go up to 22%, depending on the lender. They are typically influenced by factors such as the loan amount, tenure, and credit score.

Do I need collateral to secure a professional loan?

No. There is no need for collateral, as many professional loans are unsecured. However, having collateral can give you more favourable conditions, like a higher loan amount, lower rate of interest, tenure, etc. Loans amounts exceeding ₹50 Lakhs may require collateral; however, this largely depends on the lender.

Can I prepay the loan? Are there any prepayment charges?

Many lenders allow prepayment of professional loans. However, the terms of this prepayment greatly vary from lender to lender. Hence, it’s best if you check for prepayment charges before you finalise your lender.