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Factors to Keep in Mind When Looking for Collateral-free CA Loan

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Setting up or growing a CA practice is both capital intensive and time-consuming. There are already thousands of them in operation, and hence, it’s difficult for a new firm to attract potential clients. Most importantly, there are many costs involved in getting a business on its feet.

It may prove challenging to meet these expenses out of your own pocket, especially if your practice is new. The best option, under those circumstances, is to avail a collateral-free Loan for Chartered Accountants from NBFCs like Bajaj Finserv. You may use this Chartered Accountants Loan for any personal or professional requirement.

However, there are certain factors to consider carefully before taking an unsecured CA loan. You must ensure that you get the best terms and conditions possible so that you can utilize your loan amount to the fullest.

Factors to check out when looking for unsecured CA loans

Type of loan

Both personal and business loans for Chartered Accountants are collateral-free. You must choose one of these based on your requirements. If you want the credit to expand your business, opt for a business loan. And, if there’s a personal expense that you have to meet such as funding higher education or a marriage in the family, consider taking a personal loan. You must research thoroughly and know everything about the different CA loans available.

You can avail up to Rs. 35 Lakh in both these categories. Their interest rates, however, vary with financial organizations. Bajaj Finserv, for example, offers CA loan interest rates of 14-16% for both personal and business advances.

Eligibility

Every financial institution sets some CA loan eligibility criteria that one has to meet. The basic eligibility criteria are –

  • Have 4 years’ experience after your Certificate of Practice (CoP)
  • Own a house yourself or have your parent’s house located in an area where the NBFC has an active branch in operation.

You’ll be eligible for loan application if you meet these simple requirements. The documents required are also minimal.

  • Certificate of Practice
  • KYC documents
  • Property ownership proof (self or parents)

Your loan will be approved and disbursed within one working day if you present all the pertinent documents.

Tenor

Your loan tenor determines how much you’ll pay as EMI and for how long. You must choose an appropriate tenor depending on your total income and existing liabilities. It’s vital that you are conservative in your estimate and take unforeseen expenditures into account. Select your tenor accordingly so that you never miss on a repayment.

Additional charges

There are some processing fees and other costs involved in a Chartered Accountants loan from any financial institution. Leading financial institutions usually seek a processing fee of meagre 2%, and the penal interest is even lower at 1%. There are no other additional costs involved like loan or interest statement charges or part-prepayment charges. It’s one of the significant reasons why to choose Bajaj Finserv as your CA loan provider.

Pre-approved offers

Various financial institutions offer additional services on professional loans. For instance, Bajaj Finserv provides pre-approved offers on multiple financial products including personal loans, business loans, home loan, etc. It helps you save time by making the application process simpler. All you have to do is share a few necessary details and check your pre-approved offer.

These are the essential factors that’ll help you secure a personal or business Chartered Accountant’s loan with ease. Since these loans do not require any collateral, they are the best loan options for Chartered Accountants.

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