The prevailing problem of insufficient capital among CA firms has been reduced to a great extent with the simple accessibility of financing options. Professionals like chartered accountants can opt for personal loans, loans against property, and business loans, among others. These advances can be utilised to purchase or expand office space, upgrade technology, meet working capital requirements, hire trained professionals, and any other personal need.
The different loan options come with advantages of their own. Eligible individuals can choose one that suits their requirements the best from such options for a loan for chartered accountants.
Nevertheless, before opting for any of these advances, individuals must consider a few relevant factors. The aspects are as follows –
- Eligibility check
Most professional loans come with a specific list of eligibility criteria that need to be fulfilled for approval. Before applying for a loan for chartered accountants, borrowers should thoroughly go through the eligibility requirements specified by lending institutions for a hassle-free application procedure. The basic requirements are:
- An applicant must be a self-employed Chartered Accountant
- The applicant must own a house, or his/her parents should own a property in the city where the lender operates
- Applicant must have an official Certificate of Practice (CoP) that will prove his/her practice for minimum 4 years.
- Documents required to avail a loan for chartered accountants
Besides meeting the eligibility parameters, knowing about the necessary documents to avail the loan amount is a crucial part of the checklist for a CA loan. Following is the list of essential documents –
- Identity proof
- KYC documents – Aadhaar/voter’s ID/passport/driving license, etc.
- Account statements of the last 6 months
- Business proof – Income tax return/Trade license
- Residential proof
- Other financial documents specified by the lender
- Estimate several loan options
As a charted accountant by profession, you already know the financial terminologies and definitions. This is definitely an advantage, necessary to make an informed decision while availing a loan for chartered accountants.
Nevertheless, it is crucial to analyse various financial products offered by different lenders to make an appropriate decision. For example, you need to check whether you can afford to choose an unsecured loan or need to mortgage property to avail funds.
If individuals choose the latter, they can opt for a loan against property for chartered accountants. Herein, individuals can obtain funds against the market value of the mortgaged property.
On the other hand, they can also look for a collateral-free loan for chartered accountants like personal and business loans extended by reputed NBFCs at affordable interest rates.
- Maintaining a healthy credit score
An individual’s debt management is directly related to their creditworthiness. Therefore, all financial institutions evaluate an applicant’s credit score before sanctioning a loan. If a borrower possesses a lower credit score, it will be difficult for him/her to qualify for the loan. On the other hand, a higher credit score enhances the possibility of loan approval and reduces chartered accountant loan interest rate.
Thus, it is essential to know how can CAs increase their CIBIL score to secure loans at favourable terms and better interest rates.
- Keep the records updated
Often financial lenders require updated financial documents or previous records. However, if there is any discrepancy, one needs to rectify it before applying for a loan for chartered accountants.
Lenders will demand certain documents such as income tax returns, account statements, cash income statements, etc. when you apply for a loan. Therefore, if you keep all the documents updated, your application procedure will be completed without any complication.
Apart from all these, several reputed NBFCs also extend lucrative facilities like a flexi loan and pre-approved offers for added borrower convenience. Pre-approved offers simplify and accelerate the entire loan application procedure. These are available on credit cards, business loans, personal loans, etc. One can check their pre-approved offer by entering their name and contact details.
By considering the above factors, individuals can obtain their preferred loan for chartered accountants and at the most attractive rate. Nonetheless, a chartered accountant must perform extensive research before applying for the selected loan and pay the interest on time.