A chartered accountant loan can be the ideal solution to all of your financing needs. Before you apply for one, however, review these guidelines.
A CA loan can be an affordable and a convenient way to fulfil all your professional and personal goals. With a business loan offered under this customised umbrella of financial offerings for CA professionals, you can expand your practice or boost your working capital. With a personal loan for chartered accountant, you can fund your child’s educational expenses or plan a family vacation.
With a loan against the property you can invest in a new property or purchase a large asset and with a home loan, you can purchase the right home for yourself and your family. A loan for chartered accountants offers several benefits such as simple eligibility requirements, flexible repayment tenors, high loan amount, and simple and fast online application. However, before you apply for one, here are some factors to keep in mind to ensure that you are making the right move:
Weigh your loan options
Being an accountant, you are already one step ahead when it comes to understanding financial terminology. This puts you in a better position when it comes to making a decision regarding a loan. However, it is still imperative to carry out an in-depth analysis of each loan product under the suite of CA loans and research your loan provider before making the final decision. Choose the loan that best suits your needs: a personal, business or home loan or a loan against property. See if a collateral-free loan is what you are looking for or if you want to mortgage your property against the loan. Also, check the repayment tenor under each option and see which is the most convenient for you. Lastly, acquaint yourself with the interest rates and see which lender is offering you the most competitive funding option.
Maintain a good credit score
Your ability to manage your debt is directly related to your repayment ability, and this is why lenders check your credit score before approving your loan application. If you have a low score, you may find it difficult to secure a CA loan. There are various ways of improving your credit score before you apply for a loan. You can repay all overdue debt, not take on any new debt and make timely payments on your existing EMI to boost your score.
Not only does a good score increase your chances of getting a loan, it can also reduce your CA loan interest rate. When taking a business loan, keep in mind that mixing personal credit history with business credit history can be detrimental to your credit scores. Another reason to avoid doing so is because your business needs a solid independent credit history of its own in order to grow faster.
Keep your records up-to-date
Even though you spend most of your time keeping your clients’ books in order, you may not be extending the same courtesy to your own accounts. If this is the case, you should rectify the problem immediately, especially if you are going to apply for a CA loan. This is because as part of your application procedure, you will be asked for various documents—including bank statements, tax returns, a list of business assets, and other related information. It is important to be prepared for this in advance. Use a dedicated invoicing and bookkeeping software to make this easier and more convenient for yourself.
Research and ask for advice
Visit your usual loan provider, and ask them about the features and advantages of avaling loans for CA professionals as well as all the fees and charges associated with it. Knowing all the information in advance will help you get the loan successfully and see if it is a good solution for your needs. Knowing about the line of credit option, for example, is a good idea, since it reduces your EMIs when it comes to tackling unpredictable expenses.
You can also make the most of your CA loan by connecting with someone who has already opted for one. Such people can offer the best guidance and advice for your particular needs. Since they’ve already gone through the entire process, they can tell you the precise measures to take to get the loan. CA loans are designed to fulfil the specific needs of chartered accountants, and therefore offer benefits like easy eligibility criteria, minimum documentation, flexible tenors and quick disbursals for urgent needs. With a high loan amount of up to Rs.30 lakh for personal and business loans and up to Rs.2 crore for home loans and loans against property, Bajaj Finserv offers Loans for Chartered Accountants at the most competitive rates. Click here for more information.