Chartered accountants advise businesses on financial matters. They audit accounts and offer help to maximize returns on taxes. They manage finances and assist their clients in preparing budgets. To be honest, a chartered accountant is the lifeblood of a business.
There are up to 300000 chartered accountants in India; shows statistics. Some work as consultants and serve multiple clients. Others are either self-employed financial advisers serving private and public entities. There are also salaried professionals working with firms across the globe.
Whatever is the scenario, chartered accountancy is a profession that is in high demand. Still, CAs is not free from financial emergencies and instabilities. They often find themselves unable to locate funds to expand their operations.
Do you belong to this group? If yes, there is good news,CA loans.
A chartered accountant loan entitles you to the following benefits:
- It lets you expand your operations: Expanding your business asks for more resources. And a chartered accountant loan is the only way out. It lets you take care of it without compromising your current operations.
- You can buy new assets: With a CA loan, you can add up to your premises or buy new assets.
Why a chartered accountant loan?
Business loans are there in plenty. And the question is why go for a chartered accountant loan? It carries the following advantages:
- It offers you maximum flexibility
Your business requirements may vary based on the type of practice you choose. Almost all financial institutions offer generous loans to chartered accountants. The amount available may go up to 3500000. Most of them even impose no restrictions on its usage. This implies that you can get the amount you want as loan. And you are free to use it as per your discretion.
- It is affordable
A chartered accountant loan in India is quite affordable. Financial institutions generally offer CA loans at lower interest rates. They even let you pay the first three installments of your loan at one go. This reduces your principle amount, lowering your interest in turn. Almost all lenders offer this service completely free of cost. However, certain firms may charge you for the same. Consult with your choice financial firm in this regard.
- You get your loan within no time
You can apply for CA loan either offline or online. If you decide to go online, you get the loan amount within 24 hours. The great thing about online loan applications is that they require minimum documentation.
Certain institutions even come to your home to accept your documents.
- Your qualifications come handy
Your qualifications and years come handy when applying for a chartered accountant loan. Your lender takes them into account and decides upon the facilities you can avail.
- You get a flexible repayment tenure
All reputed lenders offer flexible loan repayment options to chartered accountants. You can evaluate the flow of cash and choose installments accordingly.
Banks generally offer chartered accountants up to 60 months as repayment term. Certain financial institutions even allow 80 months.
- You manage your funds from wherever you are
Apply online for a chartered accountant loan. You get to manage it from wherever you are. You can track your application status online. And getting the funds is a breeze.
- You get the flexi loan facility
Banks and other financial institutions offer flexi loan facility to chartered accountants. This is an overdraft facility banks offer to facilitate easy repayment. It lets you take only the amount you need at a certain time.
Here, your lender offers you a certain amount as preapproved credit. This gets credited to your account. And you can use the amount as per your requirements. The facility allows you to enjoy the benefits given below:
- As a borrower, you can take only the amount you require. The amount never goes beyond the allowed limit of credit. This lets you meet any unexpected financial emergency from your loan.
- You will pay interest only for the amount you use. The credit limit your lender allowed may be higher. However, you have to pay interest only for the amount used. For instance, you availed a loan of INR3000000. You used only 1000000. You pay interest only for the INR1000000 used.
- You don’t need a guarantor
Lenders often don’t require chartered accountants to ensure a guarantor for the loans available for them. The terms and conditions may vary based on the lender you choose. Contact your choice firm and learn everything in detail.
Charted accountant loan eligibility requirements
You can apply for a CA loan to any of the reputed banks or private lenders in your locality. Given below are the general eligibility requirements for the same:
- Four years of experience before applying for the loan
- Certain lenders impose age restrictions. The applicant must be below a specified number of years of age.
- The applicant must have valid certifications and licenses.
- The applicant must be registered with the Institute of Chartered Accountants of India.
- The borrower’s name must not be there in the RBI’s list of defaulters.
You will need the following documents to avail a CA loan in a general scenario:
|COP||For a minimum of two years|
|KYC (Know Your Customer) documents||ID proofs|
|Income tax returns||Balance sheets, PL accounts etc.|
|Documents of mortgage||For secured loans|
Points to Remember
To get the most from your chartered accountant loan, you should know how to use it. Given below are a few helpful suggestions:
- Use your property loan to handle the down payment of another home. You may also buy other assets with it.
- Repay your credit card debt: As you know, a chartered accountant loan does not need a guarantor. Use it to repay the debts on your credit cards.
- Buy your own home: A CA loan is the most flexible form of financial assistance available. It offers flexible repayment tenure. Some lenders even give you 80-month time to repay your loan. Use it to buy your dream home.
Certain lenders also offer services like property search. Inquire about it and make them work in your favor.
Take your CA firm to the next level. A Chartered accountant loan is flexible, easy to repay and, is extendable up to six and a half years.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.