Like all other loans, loans for chartered accountants are also subject to various charges. Knowing about these charges helps you estimate the affordability of the loan. It also helps you compare your chosen lender with others and make the right decision. You can use this information to organise your finances to meet costs with ease.
Here is the list of charges for loans customised for CAs:
Application fees
The application or loan processing fee is a basic fee charged to cover the overall processing costs of the loan. This may include administration costs and the cost of resources. This fee is up to 2.95% (inclusive of applicable taxes) on unsecured loans like a personal loan or a business loan and up to 3.54% (inclusive of applicable taxes) for a secured loan like a loan against a property or home loan. This fee is directly deducted from your sanctioned loan amount.
Statement charges
Every lender provides you loan interest and principal statements. Some lenders charge you a fee to provide these statements in hard copies. The lender uses this fee to pay the courier and the various intermediaries involved in getting the statements to you. However, you can easily avoid this charge, and most statements can be accessed online. Lenders like Bajaj Finserv, for example, do not charge you anything for this facility.
EMI bounce charges
This charge is levied any time your EMI cheque bounces. You can be charged Rs. 1,500 per bounce. This fee could be higher depending on your lender.
Penal interest rate
Missing EMI payment deadlines attracts a penal interest charges. Delay in payment of monthly instalment shall attract penal interest at the rate 42% per month on the monthly instalment outstanding, from the respective due date until the date of receipt of monthly instalment.
Additional read: Checklist for a CA loan
Foreclosure charges
These are the charges you will have to pay if you foreclose your loan before the tenor ends. This could be 4.72% (inclusive of applicable taxes) on your outstanding loan amount.
Prepayment charges
Many lenders could charge a prepayment penalty for paying an amount that exceeds your EMIs to reduce your loan principal. This can be 4.72% of the prepayment amount inclusive of taxes. Choose lenders who waive off prepayment charges to increase your affordability. For example, Bajaj Finserv does not charge prepayment fees for Flexi Term Loan (Flexi Dropline) and Flexi Hybrid variant of CA loan.
Keep these charges in mind while comparing various lenders. Choose a lender with lower fees to make your borrowing experience more affordable.
Additional read: How to get your loan for CAs approved easily
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