Chartered accountancy is one of the toughest educational courses in India. CA aspirants should indulge in an articleship from a professional CA firm for 3 years in the final years of the course.
Post the articleship, individuals can either decide to start their practice or join a CA firm. In most cases, individuals opt to begin their own practice to work on their terms. It allows CAs the liberty to develop on their interests.
Starting a firm can cost substantially, considering the scale of it and the services provided. To avoid any financial dent, individuals prefer loan for chartered accountants to facilitate the cause.
Guide to different chartered accountant loans
While CAs can opt to avail general loans to finance their expenses, professional loans for chartered accountants are tailored to the several needs of a CA.
There are several loan options for you to choose from to meet your individual needs. These loan options are discussed below –
- Personal loan for CA
You can avail a personal loan for CA at an interest rate of approximately 14%. It is a form of unsecured loan, i.e. you do not need to pledge any collateral with your lender to avail the loan.
In case you are wondering how personal loans for CAs can help you, such a loan is not bound by end-use restrictions, meaning you can utilise it for several purposes such as financing a home renovation, marriage, vacation, etc.
Additionally, you can conveniently repay the loan amount within a period of 1 – 6 years, as per your financial standing. Consequently, employ due consideration when determining the repayment tenor.
- Business loan for chartered accountants
In India, CAs can avail business loans of up to Rs. 35 Lakh. Like a personal loan, it is also an unsecured loan and attracts an interest rate in the range of 14% – 15%.
You can utilise the professional loan for chartered accountants to expand the scale of your operations, improve the infrastructure of your firm or hire more personnel.
You can conveniently repay within a time frame of 12 months – 72 months. You can determine the tenor by carefully assessing your business’ revenue model.
- Loan against property for CAs
It is a secured credit facility, wherein you are required to pledge collateral with the lending institution. Loan quantum can go up to Rs. 2 Crore and interest rate can be up to 10% depending on the lender.
The large quantum for a loan against property for a chartered accountant can help you to finance multiple purposes, as there is no usage restriction on the loan. Loan tenors range from 2 years to 20 years, thus allowing you the flexibility to repay according to your financial capacity and prospects.
- Home loan for chartered accountant
Home loans for chartered accountants are secured and usage-restricted credit facilities. Leading lenders offer loan amount as high as Rs. 2 Crore depending on the property value you decide to purchase. The interest rate on the same can be approximately 9% depending on the respective financial institution.
When deciding on which lender you will choose to avail a loan for chartered accountants, ensure you peruse through their loan policies and interest rates to make an informed decision.
Several financial institutions such as Bajaj Finserv also provide pre-approved offers on loans to ascertain a smooth and fast procedure for the borrower.
Eligibility and documents for a loan for chartered accountants
- You should be a resident of India.
- You should have a practice of a minimum of 4 years.
- You should have a regular source of income.
- You must have an office or a residential property.
The documentation process is formed to suit a CA by including documentation and eligibility customised as per their profession.
The standard documents required are –
- KYC documents.
- Certificate of Practice (CoP.)
- Property papers (for a loan against property.)
- IT returns.
- P/L statement of your firm of the last 2 months.
You can look for a professional loan for chartered accountants by either visiting the lending institution personally or via online.