1 min read
25 May 2021

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 usually 2% on unsecured loans like a personal loan or a business loan and only 1% 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 up to Rs. 3,000 per bounce. This fee could be higher depending on your lender.

Penal interest rate

Missing EMI payment deadlines attracts a penal interest rate. This means you will be charged 2% or extra over your current interest rate in the event of late payment of your EMI.

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 up to 4% plus the 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 up to 2% of the prepayment amount plus taxes. Choose lenders who waive off prepayment charges to increase your affordability. For example, Bajaj Finserv does not charge prepayment fees for individual borrowers who pay a floating interest on their CA loan. Bajaj Finserv Flexi Term Loans for CAs also don't carry any part-prepayment charges on them.

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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