Things to Know About Chartered Accountant Loan

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If you are a freelance or a salaried chartered accountant (CA), having a few years experience and aspiring to start your own business by setting up your own CA firm, your search for a source of funding ends here. You can avail of Chartered Accountants Loan by Bajaj Finserv.

Before applying for the CA loan knowing about it will be prudent.  So let’s look at everything that you need to know before applying for a CA loan.

  1. Flexible loans: The loan amount is disbursed in the form of a line of credit. You can make multiple withdrawals and deposits. You are only charged interest for the amount utilized. You repay the principal at the end of the tenure.
  2. Interest rates: You get chartered accountant loan interest rate which is lower as compared to other loans. You’re EMIs and the interest outgo is influenced with the interest rates. Thus, it is advisable to compare the interest rates from different lenders.
  3. Tenure: CA loans also come with flexible tenure. If you can afford a higher EMI, you can choose a short tenure. However, for a lower EMI, choose a longer tenure. You can choose from tenure ranging from 12 to 60 months depending on your requirements.
  4. Easy processing: This tailor-made product does not require a collateral guarantor. Hence, you can expect a quicker processing time and easy documentation.
  5. Higher loan amount: With CA loans, you get loans up to 30 lakh without guarantor or collateral.
  6. Online access: Facility of online portal helps you access loan statements and details at the click of a button.
  7. Pre-approved offers: Lenders want to reward their loyal customers. If you are an existing customer, you may be offered attractive deals with lower interest rates.
  8. Eligibility criteria: To avail a CA loan, you must first fulfil certain Chartered Accountant Loan Eligibility criteria The basic requirements include:
  • You need to have a practice of a minimum of 5 years
  • You must have your own home, parental home or office
  • You need to have a minimum monthly salary Rs.75,000 for Tier 1 city and Rs.40,000 for Tier 2 city
  1. Documents: While minimum documentation is involved, lack of either document could lead to rejection. The list of documents includes
  • Copy of your Certificate of practice
  • Form 16 for the past two years
  • Salary slips
  • Your Bank Account Statement
  • Educational certificates
  • Copy of PAN Card
  • ID proof
  • Address proof
  • Property proof
  1. Fees and charges: Charges are levied if you default on your payment. You could also incur some charges in the form of penal interest, secure fees, foreclosure and part pre-payment charges depending on the lender. You should consider these charges to ensure that the loan doesn’t get costlier in the long run.

Ensure that you know everything about the loan that you are applying for.