Need Cash in a Hurry? Apply for CA Loans and Enjoy Instant Approval

Posted by Arwind Sharma on January 17th, 2019

According to the Institute of Chartered Accountants of India, there are around 75,000 fellow CAs and 49,000 associate CAs in full-time practice as of 2018. The total number of fellow and associate CAs currently in full-time practice, part-time practice, and not in practice is around 2.8 Lakh.

The majority of Chartered Accountants look to start their own practice after their certification while the remainder first pursue their careers as employees.

Both self-employed and employed CAs can apply for Chartered Accountant loans from NBFCs and other financial institutions.

Some of the various types of Chartered Accountant Loans that you can opt for are:

I. Secured loans

You have to provide collateral for availing a secured loan. Generally, this collateral is a fixed asset like a house.

Two types of secured loans for CAs include –

1. Home loans

As the name suggests, home loans are available to purchase or construct a house. Some of the features of these loans include:

• High financing up to Rs. 2 Crore.

• Convenient repayment tenors up to 20 years.

Some lenders also provide additional benefits like:

• Balance transfer facility

This facility enables you to transfer the balance of your existing home loan to another lender. You can avail this facility in case the second financial institution offers lower interest rates.

Sometimes, the new lender may also provide you with a top-up loan when you opt for a balance transfer facility.

• Property search services

The lender can offer property search services to help you find the ideal house when you apply for a Chartered Accountant loan. These services can come at an extra cost.

• Property dossier

Property dossier services help you familiarise with the legal and financial characteristics of becoming a homeowner.

NBFCs like Bajaj Finserv provide these property dossier services with their home loans for chartered accountants along with attractive EMIs and flexible repayment tenors.

2. Loans against property

A loan against property can be used for any financial purposes. Loans against property come with almost similar features like a home loan.

II. Unsecured loans

Unsecured loans are collateral-free. Hence, you don’t have to pledge any asset for availing them.

Two types of unsecured loans for CAs include –

1. Personal loans

Personal loans are the unsecured alternative to loans against property. Few of the features of this professional loan include:

• High financing up to Rs. 35 Lakh.

• Repayment tenors ranging from 12 to 60 months.

Some of the ways personal loans can help CAs:

• Organising a destination wedding.

• Higher education.

• Home renovation.

• Foreign vacation.

2. Business loans

Business loans have similar features of personal loans; however, these loans are specifically designed for the business needs of CAs.

Use business loans for the following purposes:

• Renovate your practice.

• Buy/lease a new space.

• Purchase equipment.

• Expand your practice.

• Consolidate debt.

These included the four options that you receive when you apply for a Chartered Accountant loan.

Documents required to apply for CA loans

You have to provide the following documents when you apply for CA loans:

• Certificate of Practice.

• KYC documents – Aadhaar, PAN, Passport, Voter ID, Driving License, etc.

• Income tax returns for the previous 2 years.

• Bank account statements.

• Balance sheet and Profit & Loss Account statement of the last 2 years (for self-employed CAs.)

• Property documents that you are mortgaging (for secured loans).

Eligibility criteria for a CA loan

Lenders will require you to fulfil the following eligibility criteria:

• A Certificate of Practice that is active for minimum 4 years.

• Have an office or house where the financial institution operates.

Compare the interest rates across lenders, follow a CA loan checklist to accurately meet the documentation & eligibility criteria before you apply for a Chartered Accountant loan.