2 min read
25 May 2021

CA loans can be of great assistance when you’re trying to set up or expand your business, or you’re working towards improving your quality of your personal life.

1. Loans for CAs versus Regular Loans

Loans for chartered accountants give you access to funds without you having to meet extensive eligibility criteria or filling out copious amounts of paperwork. So, they are easier and quicker to secure as compared to a regular loan. Some lenders give you the money in your bank account within 24 hours.

Flexible repayment tenor, doorstep services, easy part-prepayment options make it a convenient financing option for CAs. Hence, if you are a chartered accountant, it makes more sense to apply for a customised loan. It comes in a suit of 4 loans to meet all your personal or professional needs. You could also take it in the form of a flexi loan and smartly manage your cash flows.

Personal loan:

With Rs. 45 lakh that you can repay over 12–72 months, a personal loan for chartered accountants gives you credit that you can use for any personal purpose. Buy a new vehicle, go on a holiday abroad, or rainproof your house—the choice is yours.

Business loan:

From diversifying your business to adding computers and additional employees, this loan gives you access to Rs. 35 lakh, repayable over a tenor of 12–72 months.

Home loan:

If you don’t have enough savings to pay for a home, use a home loan to ease the burden. This secured loan gives you up to Rs. 2 crore with a repayment tenor of 20 years.

Loan against property:

You can pledge a commercial or private property to get access to funds in this loan. You can get up to Rs. 2 crore, repayable over 20 years.

2. Eligibility criteria

  • A certificate of practice that has been active for at least 4 years
  • You must own a house/ office
  • You must be a resident of India
  • You must be employed with regular income

3. Documents required

To attest to your eligibility, you must submit the following documents:

  • Certificate of Practice
  • KYC documents
  • Filled application form
  • Photograph
  • Papers of the property that is to be mortgaged
  • IT returns, balance sheet and profit and loss account statement for the last 2 years

4. Questions to ask before applying for a CA Loan

What do you expect from your loan?
Apart from different amounts, different lenders offer varying features and benefits with their loans. You should pick one that not only gives you ample funds, but also gives you all the benefits that you are looking for from your loan for chartered accountants. For example, if you are looking to use the funds for urgent business needs, ensure that your chosen Business Loan lender gives you instant application approvals and disburses your loan amount quickly.

Are loans for chartered accountants flexible?
To make it easier for you to manage your finances, some lenders offer you a flexi loan. Here, you can make multiple withdrawals and deposits against the credit limit and are charged interest only on the used amount. You can also choose to have your monthly EMIs constitute only of the interest, with the principal to be repaid at the end of the tenor. This makes it easier for you to manage your cash flow and allow you to facilitate unpredictable needs for finances conveniently

Does the loan come with online access?
When you have the responsibility of handling a business, you don’t want to run around for loan statements. To ensure that you have all the information in real time, pick a lender that allows you to access these details. Usually, your lender will have an online online customer portal that gives you access to loan statements and details at the click of a button. All you need to do is key in your user ID and password.

Can I make part prepayments on my loan for CAs?
Yes, you can make part prepayments and even foreclose your loan. But, you must ensure that your part prepayment is equivalent to 3 EMIs. Different lenders may have different rules about foreclosure charges, so read about them to ensure that foreclosing the loan is affordable for you.

Are there any restrictions on the usage of the loan amount?
You should ideally pick a lender who doesn’t control how you use the loan amount. Barring a home loan, which is taken to purchase a property, pick a lender that allows you to use your loan for any purpose.

Is the tenor flexible?
The repayment tenor is what makes your loan affordable or expensive. Pick a lender that allows you to choose the tenor. You can pick a long tenor and benefit from lower EMIs. Similarly, when you pick a shorter tenor, you can pay heftier EMIs but pay lower interest, and repay your debt quicker.

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