2 min read
25 May 2021

Loans for chartered accountants, including a personal loan, business loan and loan against property, are a customised and convenient mode of finance for CAs. With GST changing how much you pay for a gamut of goods and services, take a look at how it impacts a loan for chartered accountants.

Impact on personal loans and business loans

Prior to the introduction to GST, a service tax of 15% was applicable on the processing fees of a personal loan or business loan. So, if you took a loan of Rs. 5 lakh, with a processing fee charged at 2%, you would have to pay Rs. 10,000 as processing fees. The service tax on this amount would be charged as 15% on Rs. 10,000, which is Rs. 1,500. As a result, your total processing fee payment would be Rs. 10,000 + Rs. 1,500, which is Rs. 11,500.

Post the implementation of GST, the 15% service tax has been replaced by 18% GST that is also levied on the processing fees. This is to say that if your processing fee is Rs. 10,000 for a loan of Rs. 5 lakh, your total payment would come up to Rs. 11,800, instead of Rs. 11,500.

Apart from processing fees, this change is applicable to charges such as the part prepayment fees as well. So, post the implementation of GST, the cost of your personal loan or business loan for chartered accountants has risen ever so slightly. Bajaj Finserv offers these loans with multiple benefits, at attractive interest rates and basic fees.

Why is a loan for chartered accountants still a beneficial source of finance?

Despite the 3%–increase, a loan for chartered accountants, whether a personal loan, business loan or loan against property, is still an excellent source of finance. In reality, the 3% hike translates into a marginal increase in your cash outflow. So, take a look at the benefits that this suite of loans has to offer.

1. Substantial loan amount
To cater to all your needs, you have a range of loan amounts to choose from. Business loans and personal loans offer up to Rs. 45 lakh, whereas loans against property offer up to Rs. 50 lakh.

2. Quick approvals and disbursal
To ensure that you get the funds as soon as possible, you get quick approval and disbursal within 24 hours after submitting your documents.

3. Flexi loan account
You can use a Flexi loan account wherein you can withdraw the entire amount or withdraw in parts as the need arises. You can pay interest as EMI and repay the principal at the end of the tenor. So, with this facility, you can reduce up to 45% of EMIs compared to a term loan.

4. Collateral-free
Business loans and personal loans are collateral-free, which means that you don’t need to risk your assets to access funds.

5. Flexible tenor
If you take an unsecured loan, you can choose a tenor spanning 12–96 months. On the other hand, a secured loan gives you the option of repaying in up to 144 months. This way, you can spread your EMIs according to what you can afford.

6. Nominal rate of interest
With an affordable rate of interest, you can access a higher amount of credit without any financial stress.

7. Easy eligibility and minimal documentation
You can apply for this loan with a certificate of practice of a minimum of two years. Apart from this, you only need to submit a few KYC documents along with your application.

8. Online application and loan management
To simplify the application process, you have the option of applying online. Besides, once the loan is in effect, you can look at all the relevant details such as balance outstanding and interest statements through the lender’s online customer portal. Your unique customer ID and password will give you access to these details.

9. Value-added services such as property dossier, property search and customised insurance schemes

When you opt for a loan against property, you can get assistance to select the right property for investment. You also get guidance on the legal aspects of property purchase and can enjoy a customised insurance plan. Instead of applying for insurance separately, part of your loan amount will go towards this.

While loans have become slightly more expensive with GST coming into play, if you pick your lender wisely, you will find that it is still one of the best, most affordable options for availing credit.

Additional read: What are the top advantages and disadvantages of GST in India?

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