Professional Loan for Lawyers/Advocates

Financial institutions minutely scrutinise before extending loans to self-employed individuals as they have an unpredictable monthly income. As a result, they often face credit issues, especially when they are just starting their career.

If you are an advocate then you also come under the group of self-employed people and thus need to be mindful of career-specific loan facilities. It will ensure the next time you are applying for a loan, you do not fall victim to such discrimination. In this guide, you will learn everything about loans for advocates.

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

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. Interest rates start from as low as 12% with a minimal processing fee not exceeding 2% of the borrowed sum. 

For detailed information on interests, you may look for relevant information on your preferred lender’s website. Many lenders even provide collateral-free funding to lawyers applying for loans. However, the upper and lower limits of the approvable loan amount will vary from one organisation to another. 

What are the Eligibility Criteria for a Lawyer Loan?

Usually, you do not face any difficulties while analysing and picking the ideal loan for advocates online. This is because the eligibility criteria fixed for such loans are pretty simple. 

To avail 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 25 years and 65 years.

• You must be a non-salaried working professional.

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 Loan 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. Moreover, the interest rates fixated for 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 Helps You to Set up a Venture

This loan may be used to pay for the acquisition of machinery, computers, furnishings, vehicles, and office supplies. Without financial aid, a lawyer will find it difficult to arrange for these upfront costs 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 of organising 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 for grasping better career opportunities then you may apply for such loans too.

• Most Lenders Prefer Experienced Candidates

Lenders generally prefer lawyers with at least 3-4 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. 

What are the Different Types of Professional Loans in India?

In India, you will generally come across five different types of professional loans. These include loans for lawyers, CAs, engineers, doctors, and consultants. These deals are personalised keeping in mind the higher income potential of these professionals and generally come with adjustable tenures. 

Loan for advocates comes in handy as previously banks used to deny personal loans to lawyers. This happened because a lawyer’s monthly income is full of uncertainty, especially when they are stepping into their first job. But now, with the help of a lawyer's loan, these people can easily hire employees, expand their business or pursue advanced courses. 

Similarly, chartered accountants may require a professional loan to rent an office, buy new work-related equipment, pay salaries to hired officials, etc. 

Professional loans help medical practitioners to purchase expensive equipment for their private clinic, enrol for a superior medical course, etc. Contrarily, engineers are welcomed by lending firms to take professional loans to inaugurate their own firms, for personal use, etc. 

What are Some Top Banks Providing Professional Loans for Advocates?

Do you feel swamped trying to figure out which lender can be ideal to disburse a loan to advocate? If yes, then you may refer to the table below for a comprehensive list of reputed lenders providing services pan India.

Besides the above-mentioned lenders, many other institutions also offer professional loans for advocates. These schemes are suitable for lawyers as they operate individually and may fall short of money while fulfilling their career goals. The information shared here regarding the interests, eligibility, documents, and loan limit are all as per the latest norms. However, these particulars may be updated by the respective lenders at any time in the future.