People often turn to their fixed deposits and savings to arrange funds for major expenses such as a wedding, children's education, or necessary home repairs. Personal loans are a better alternative to arrange for these expenses. Both self-employed and salaried chartered accountants can benefit from these loans designed specifically for their profession.
Personal loan for chartered accountants
Chartered accountants can avail unsecured personal loans that come with no end-use restrictions. The offered by NBFCs are also minimum.
What documents do you need for a CA personal loan?
An essential document of all, the CoP is a must to qualify for this type of loan. Certification of Practice or a CoP is issued to every qualified chartered accountant by the Institute of Chartered Accountants of India. It's proof of a CAs proficiency and eligibility to practice.
KYC documents required for CA loan comprises your Aaadhar card, PAN card, Passport, Voter ID, and Driving License.
The borrower must present the last 6 month's bank statement from the date of application while availing a personal loan. Its purpose is to reveal details of one's bank balance, and a way for the financial institution to understand the borrower's economic condition.
It's advisable to keep multiple copies of your recent passport sized photographs handy.
All the above mentioned documents required for CA loan are easy to arrange.
Additionally, some financial institutions offer CA loans with a flexible repayment tenor ranging from 12 to 60 months. You can select the tenor as per your repayment capabilities.
Advantages of CA loans
An advantage of a is their unsecured nature. Therefore, you don't need to pledge any collateral to avail the funds. Generally, collateral-free loans require the borrower to pay a slightly higher interest rate compared to secured loans. However, the other advantages of a personal loan satisfactorily compensate for the somewhat high rate of interest.
Some of these advantages are:
Up to Rs. 35 Lakh is granted as a Personal Loan for Chartered Accountants.
The Flexi Loan facility allows a borrower to withdraw only the required amount from a pre-set credit limit. Here, the borrower can pay interest only on the amount utilised and not on the entire loan amount. The facility brings down the EMI amount by up to 45%.
Such are sanctioned against minimal documents and simple eligibility requirements.
Prompt disbursal of the sum in your account within 24 hours of approval.
For those who are eligible, CA loans are advantageous over a conventional personal loan. Now, to prove your eligibility, you must present the lending institution certain documents.
Are you eligible for a chartered accountant loan?
For a CA loan, you must present a CoP which is active for at least 4 years. Additionally, you need to own a house or an office where you practice. You also have to increase your CIBIL score to 750.
Websites of several financial institutions feature a personal loan eligibility calculator that enables you to know the maximum amount you are eligible to avail as a loan. It considers your monthly income and expenses while determining the loan to value.
With minimum documents required for CA loan and it's easy to meet eligibility parameters, chartered accountant loans are an affordable solution to financial responsibilities. Do take a look at how to apply for a chartered accountant loan beforehand.
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