Step by Step Guide to Apply for CA Loan in India

Step by Step Guide to Apply for CA Loan in India

Chartered accountants play a key role in the Indian economy. There are more than 2.8 Lakh practising CA in India, working in association with different companies or working as self-employed individuals.

These individuals require a large amount of financing to cater to several personal and business requirements. Financial institutions offer advances tailor-made to suit the unique need of practising CAs in the form of a loan for chartered accountants.

There are several different types of loans for chartered accountants available in the Indian financial market. These financial products differ from each other in the specific amount they provide to the borrowers, loan tenors, CA loan interest rates, along with other key factors.

A list of the different types of loans you can avail.

  • Business loan – This unsecured loan is pledged without any collateral. It is ideal for your business-related expenses.
  • Home loan – Specifically borrowed to purchase/construct a house, such loans are secured and require mortgaging the property.
  • Personal loan – This is also an unsecured loan which caters to your individual needs.
  • Loans against property – Secured alternative for your expenses. One might ask how a loan against a property for CAs can help you. The amount of credit against property is much higher than unsecured business or personal investment.
  1. Variation in loan amount – The loan amount will vary according to the type of loan you choose. Financial institutes can offer a credit up to Rs. 35 Lakh for unsecured loans. The same amount changes to a maximum of Rs. 2 Crore for secured loans.
  2. Know your CA loan eligibility criteria –
  • The borrower must hold an office/property where NBFCs like Bajaj Finserv can deliver their services.
  • CIBIL Score – Borrowers are required to have a minimum CIBIL score of 750 to sanction an unsecured loan.
  • FOIR – FOIR (Fixed Obligation to Income Ratio) is another essential criterion which loan providers look for, before crediting an unsecured loan. This ratio is calculated against your monthly income to your fixed obligations like EMIs, credit card bills, etc. Customers whose FOIR is more than 50% gain more preference from lenders.
  1. Documents you need to provide – All financial institutes mandate certain documents for approval. The earlier you fulfil your CA loan eligibility criteria, the faster the lenders can sanction the loan amount post approval.

You need to provide documents such as:

  • KYC documents including Aadhaar card, PAN, Voter ID, etc.
  • Bank account statement.
  • Certificate of practice.

However, when applying for a secured loan, the below stated documents are additionally mandatory.

  • Income tax returns for the past 2 years.
  • Documents of the asset you pledge as collateral.
  • Balance sheet and Profit & Loss account statement for the last 2 years.

Make sure you fulfil the basic checklist for a CA loan to understand any other additional requirements and avoid a loan rejection. You should also carefully consider the available options before you settle for a financial institution or their financial product.

Look for affordable interest rates, repayment tenors that help you pay off the debt, an adequate amount to fulfil your requirement, and fast disbursals.

For example, NBFCs like Bajaj Finserv provide Loan for Chartered Accountants with attractive interest rate and flexible tenor. The online application process allows loan approval and disbursal within only 24 hours.

Bajaj Finserv also brings you pre-approved offers on personal loans, business loans, home loans as well as several other financial products and services. Such offers not only simplify the process of availing a loan but also help you save time. Share only a few necessary details to check your pre-approved offer.

Easy availability, affordable CA loan interest rates, large loan amounts, etc. makes this financial product one of the most preferred methods of financing for Chartered Accountants. It can help them extend their practice and provide better financial management to companies around the country other than meet their personal monetary requirements as well.

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