2 min read
25 May 2021

Various personal and professional needs often require large amounts of finance. This could be to purchase a home for your family, buy a new premise for your firm, or fund your child’s overseas education. Whatever your financial goals or requirements are, a loan against property is a viable option that offers you substantial funds based on your property value. For example, Bajaj Finance’s customised loans for chartered accountants offer you a loan against property up to Rs. 10.50 crore* that you can use without any restrictions.

Here’s how you can use a loan against property for chartered accountants:

1. For purchasing commercial property

You may buy a commercial property for various reasons, ranging from setting up a new office for your practice or for investment. Real estate acquisition requires a large investment; however, an easy way of purchasing a commercial property is through a loan against property.

2. For buying residential property

Whether it is your first home or a second home as an investment, you can easily buy it using this loan. Bajaj Finserv’s Loan against Property for CAs also gives you property search services, puts together a property dossier and offers customised insurance schemes to support you in this process. You can purchase a home of your choice and pay all incidental costs like brokerage, stamp duty and others with ease using this loan.

3. For lease rental discounting

Lease rental discounting is a process of availing a loan for purchasing a property meant to be given on rent. Under this facility, the rent from the property goes to the lender as part of the EMI payments. This option is ideal for you if you are planning to buy an additional property to gain rent from.

4. For financing working capital and other business expenses

Depending on the size and nature of your business, you could need finance for working capital. You may also need funds to expand your firm by starting offices in different locations or buying the latest accounting software for your staff. With growing FDI in India, you may also want to hire specialised CAs with experience in international business. For all such needs, you can avail of a loan against property. This enables you to overcome any shortage in cash flow and repay the loan in a tenure of up to 180 months.

Additional read: Bajaj Finserv: A one-stop destination for all your CA Loan queries

5. For personal needs like your child’s education

Higher education may entail an overall high cost, including tuition or course fees, accommodation, travel, and other related expenses, whether in India or overseas. Most education loans only cover tuition fees. To cover other costs and finance your child’s education easily by taking a loan against property.

6. Other unplanned needs

You can even utilise the Flexi term loan facility offered by Bajaj Finserv to finance unplanned expenses more affordably. Under this facility, you have sanctioned a sum for your chosen tenor. You may borrow multiple times from this sanctioned limit as and when you need the funds and pay interest only on the amount withdrawn and have access to money when you need it. You may also choose to pay only the interest as EMIs and repay the principal at the end of the tenor to manage your cash flow better. You could also prepay your loan as you have surplus cash.

These are a few ways of how you could best use a loan against property for chartered accountants. Before you go ahead, ensure you evaluate the value of the property you are pledging and meet the simple eligibility criteria for this loan.

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