One of the most used forms of financing for chartered accountants in India is the CA loan. You can open a new office or extend the current one with the help of CA Loan. You can also grow your practise. You will need to have enough money on hand to meet your financial obligations. Many financial institutions, including banks and NBFCs, now provide CA Loans. With so many lenders available on the market, selecting the right CA Loan can be challenging. The following 10 queries are crucial to ask before choosing a lender for a CA Loan.
- What Can I Use the Borrowed Funds For?
The funds from the CA Loans can be used to accomplish a wide range of financial needs. It can be used to build or purchase a new office, renovate an existing one, hire new staff, pay for overhead costs, scale up your operations, meet working capital requirements, etc. - Do I Need to Pledge Any Collateral?
If you are taking an unsecured loan, collateral is not required. This means there is no need to worry about losing your assets if you fail to repay the loan. Unsecured loans get approved quickly and require less paperwork. On the other hand, you will have to pledge an asset for secured loans. The benefit is that you may avail of a loan with a better interest rate and repayment terms. - How Long Will It Take me to Repay the Loan?
Preparing a budget will let you determine how much funds you can keep aside for your monthly loan repayments. Then, you can decide if you want to go for a long-term loan with smaller payments or a short-term loan with larger payments.
Credit Success offers flexible repayment tenure ranging from 12 to 60 months, so you can choose a tenure that meets your needs.
Also Read: Everything you need to know about Loan to Professionals
- What Are the Eligibility Requirements for a CA Loan?
These will be different depending on the lender you choose, but here are some primary requirements that you will need to fulfil:
You need to be at least 24 years of age and younger than 65 years during the loan’s maturity.
You need to be a practising CA for at least one year after your qualification.
Your yearly income from your profession should be at least Rs. 3 Lakh.
- How Much Is the Penalty If I Missed a Payment?
You may find yourself in a situation where you do not have enough funds to repay your loan instalment. Hence, it will be better to know the penalty charges in advance. To give you an idea, the penalty will be around 3% of your EMI. However, the penalties and fees for missed payments differ from lender to lender. - Can I Pay My Loan Before the Tenure Period Ends? If yes, will I Incur Any Prepayment Fees?
Some surplus funds may be available if your business is experiencing steady growth. You can use these funds to be debt-free faster. Partially prepaying or foreclosing a loan is possible, but check with your lender if there is a prepayment fee. Some major lending institutions will allow you to prepay your loan without any additional cost. - Can I Apply for the Loan Online?
Lenders like Credit Success offer online applications with minimum documentation. By applying for a loan online, you can have the funds in your account from the comfort of your home. The process of applying for a loan and submitting the documents is also made easy using advanced digital processes. This enables you to have a seamless and quick customer experience. - Are There Any Hidden or Additional Fees?
Before availing a loan, you should read all the terms and conditions carefully. These terms and conditions include information about hidden charges and additional fees like processing and verification charges. This is a good financial practice as it will save you from any unprecedented expenses. Many reputable lenders will tell you upfront that they do not charge any hidden fees.
Also Read: Know All About Professional Loan and Its Usages in India
- How Much Money Can I Borrow?
The maximum amount of funds you can borrow will vary depending on your lender. Choose one that understands the importance of your professional needs and empowers you to fulfil them. At Credit Success, you can borrow a Professional Loan for CA up to Rs. 50 Lakh without pledging any collateral. - What Will Be the Amount of My EMI?
Your lender’s interest rate is easily one of the most important factors you need to consider. Several lending institutions have an EMI calculator on their website. Use it to know how much EMI you are required to pay every month. If you can afford larger EMIs and want to repay the loan faster, keep the tenure short.
Conclusion
Loan requirement for CA can be extensive and demanding. A Professional Loan for CA is a great option as they are tailor-made for you. Consider the above 10 questions to determine which lender suits your needs and can help your CA practice reach new heights.
