Banks and NBFCs Provide Loan to Chartered Accountants: Examples of Them

By 2018, there were over 2.82 lakh chartered accountants in India, and around 1.25 lakh of them chose to start their own CA firm.

However, the number of chartered accountant firms in India is not at par with their burgeoning demand.

Lack of adequate funding to meet the expense of setting up a CA firm can be deemed to be a primary reason for the faltering number.

Nonetheless, to remedy the situation and to encourage more professionals to expand their chartered accountancy practise, several financial institutions extend a customised loan for CA professionals. Such institutions provide different financial products which help CAs to meet their requirement successfully.

Examples of loans for CA professionals

Depending upon their professional needs and requirements, qualified professionals can avail any of these following loans –

1. Business loan for chartered accountants

This loan option offers substantial value to eligible borrowers and provides them with requisite funding to expand or maintain their CA firm.

Typically, these are the ways in which one can use a business loan for CAs  –

• Start a new firm.
• Open a new branch of the exiting firm.
• Employ required help.
• Install the latest software and other technology into practice.
• Replenish working capital in case of delayed payment from clients.
• Personal loan for chartered accountants

The best thing about this loan for CA is that there is no restriction on how the borrower must use the loan value.

This enables borrowers to meet any of their current requirements, be it funding a vacation, renovating their home or office, planning a dream wedding, etc.

Also, it is one of the loans for CA, which does not require borrowers to mortgage any kind of collateral as security.

• Loan against property for the chartered accountants

Most financial institutions extend this loan with a high value and long repayment tenor. Some NBFCs even approve an eligible applicant’s application within 24 hours.

This secured loan for professionals allows CAs to fulfil several personal requirements as there is no limitation on how borrowers choose to use the availed loan value. 

• Home loan for chartered account

Other than to establish or extend a CA firm, purchasing a dream home has also become more feasible for professionals as several financial institutions provide customized home loans to CAs.

By applying for this loan option, CAs also avail additional benefits like a top-up loan and balance transfer facilities.

Nonetheless, to ensure the process of availing financial aid is hassle-free, CAs should find out how to apply for a loan for chartered accounts from an NBFC of their choice.

Things to check before applying for a professional loan

As a means to ensure individuals avail the best of the bargain, these should check a few things before applying for a loan for CA.

Some of those things are as follows –

1. Loan amount – Professionals should opt for a loan option that extends a high loan value to benefits their CA practice in the best possible way.
2. Quick verification and approval process – NBFCs like Bajaj Finserv follow a quick verification and approval process which makes financial help available to professionals when they need it the most.

Also, they bring pre-approved offers to their customer, which makes availing a loan quite convenient and time-saving. Such pre-approved offers are available on a host of financial products like business loans, personal loans, etc.

1. Repayment tenor – Professionals should pick a loan for CA that comes with a flexible repayment tenor so that they can pay their debt on time and with greater convenience.
2. Minimal documentation – They should also check out if their choice of NFBC follows a minimal documentation process or not. It goes without saying but choosing a financial institution that keeps the process short makes the entire experience less cumbersome.

Therefore, qualified individuals can avail a loan for CA to meet their requirements and benefit their practice accordingly. Before applying, they should also consider a few things beforehand, like holding a minimum CIBIL score of 750, etc.