11 Important Questions to Ask Yourself Before Finalising a Lender for Your CA Loan
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11 Important Questions to Ask Yourself Before Finalising a Lender for Your CA Loan

  • Highlights

  • Pick a lender offering a loan suite

  • Look for easy eligibility and documentation

  • Check the debt details, tenor, fees and charges

You may have a to-do list for yourself that makes you more organised and helps you achieve your business goals with ease. Similarly, a list of questions regarding your CA loan will help you think more effectively and choose the right lender based on your unique requirements. Questions on CA loan penalties, interest rates, application procedures and more will help you narrow down on a lender who is giving you the features that you want.

Ask yourself these questions to stay financially aware and choose the right lender for your CA loan.

1. What will my EMIs amount to?

- Most lenders will offer you an online EMI calculator to help you determine your prospective monthly repayment amount. This way, you will know if that particular loan is affordable for you. Also, it goes without saying that a low rate of interest is a clear sign that your EMIs will be low too.
- The value of each monthly payment will also depend on the flexibility of the tenor. If you can choose from a wide tenor, you’ll be able to keep your EMIs low and manage your cash outflow better.

2. Do I have to risk any collateral?

- Before applying for a loan, it is important to consider what type of loan you want to borrow and whether you want to put your assets at stake by pledging them. So, you can either opt for secured or unsecured loans.
- If you have financial assets ready to be submitted as collateral, you can go for secured loan options, like a home loan or a loan against property.
- If you are uncomfortable with putting your assets at risk, you can opt for a personal loan or a business loan which are unsecured/collateral-free in nature.
- Once you know what kind of loan suits you best, you can choose a lender who offers it to you.

3. How long will it take me to repay the chosen loan?

- This is an important question as it can help you decide on your tenor and the right lender.
- If you want to repay fast and have a substantial income, you can go for a short tenor. If you want to spread out your payments into smaller amounts, opt for a longer tenor. Make sure that you choose a lender who offers you a flexible tenor based on your requirements.

4. What is the CA loan eligibility criteria required by lenders?

- While some lenders have stringent eligibility criteria, others offer more relaxed terms. It is important for you to know and match the CA loan eligibility criteria, otherwise your loan application will be immediately rejected. You can compare the eligibility criteria of various lenders and choose one that offers you criteria that you can meet without any hassle.
- Typically, these loans are granted to CAs based on their practice experience.
Once you meet the criteria, the next step is to see the list of documents required for submission. Collect them in advance to speed up your loan application process.

5. What is the application process and can I apply online?

- Most lenders give you the option to apply online. This is a great feature as you can apply on the go. If you don’t have the time to visit a branch, this is a feature you must not compromise on.
- Also, the simplicity of the application process is of essence. You want it to be easy and short, so that you can get access to funds quickly. If it is a lengthy, time-consuming process, it will take away from the convenience of a loan for chartered accountants.

6. How long will it take for the money to reach me?

- You must have this information at your disposal to understand whether this source of finance will come to your aid in an urgent situation.
- Typically, a Bajaj Finserv personal loan or business loan for chartered accountants is approved and disbursed within 24 hours. On the other hand, for home loans or loans against property, this time frame goes up to 72 hours.
- You should pick a lender that offers these terms, as speedy disbursal gives you access to funds almost instantly.

7. Can I opt for a flexible withdrawal system?

You can do this as long as your lender provides a flexi loan account. With this, you can borrow as and when the need arises. Moreover, interest is only payable on the amount that you use and not on the entire loan amount.
- You will also benefit as you can withdraw, repay and re-withdraw as many times as you wish to.
- With a flexi loan, you also have the option to pay EMIs comprising of interest and repay the principal at the end of the tenor.

Mistakes to avoid when availing a CA Loan

Avoid these mistakes when applying for a Loan for Chartered Accountants to get easy approvals and enjoy a hassle-free application experience.


Mistakes to avoid when availing a CA Loan

8. Will I be charged a penalty for missing a payment?

- You may be forced to delay your EMI payment because of some unavoidable reasons. Before applying for the loan, it is wise to enquire about the repercussions of missing an EMI payment.
- Lenders normally charge 1% as an EMI bounce fee in case your EMI cheque bounces, apart from a penal interest. However, the fees and penalties for missing an EMI vary from one lender to another.

Business loan for CAs

- Knowing about these charges can allow you to financially plan your repayment so that you don’t end up spending more. As a rule, always opt for a lender who is transparent about these extra fees and charges.
 

Additional Read : How to use a Chartered Accountant loan to strengthen your practice

9. Will I be allowed to prepay the loan? Will I have to pay any prepayment charges?

- If you have a surplus of funds, you would like to repay the loan to reduce your financial burden. While most lenders allow you to do this, they also have a prepayment charge that they levy.
- On the other hand, some lenders allow you to make a prepayment as long as it is equal to or more than the value of 3 EMIs. This way you can make a prepayment without paying any extra fees or charges.

10. Will I get secure online access to my loan account?

- Every time you want to check your loan’s details, you don’t want to have to contact an executive or visit a branch. So, you must pick a lender who offers access to your loan details whenever you wish too.
- Choose a lender who allows you to view all details through a customer portal with a secure username and password. This will give you a snapshot of the loan’s details at your fingertips.

11. Does the loan offer any extra services?

- Apart from the loan amount, your lender should offer additional perks and benefits. Bajaj Finserv offers value-added services such as a customised insurance schemes, property search service, a property dossier, etc. in case you are purchasing a home. These benefits will make your loan more cost-effective.
- Once you know the answers to these questions, you are one step closer to selecting the right lender. In your quest of finding the right lender, Bajaj Finserv checks all the right boxes as it offers high loan amounts with a flexible tenor with quick approvals and disbursals, basic eligibility and documentation and minimal fees and charges.

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