10 golden rules for taking a Chartered Accountant Loan
Harish Goyal was an established chartered accountant (CA) employed with a leading bank. Although he earned handsomely and was doing well in his career, he knew he was ready to take a leap forward. The time was right for him to set up his own CA firm. He opted for a chartered accountant loan, a professional loan for CAs, from Bajaj Finserv. He needed the financial support. But he made sure he learnt about the terms and conditions of the CA loan scheme before beginning work on his business. Are you too thinking about establishing your own practice? Here are the ten things to keep in mind when applying for a CA loan
If you too are looking to take a CA loan, read on.
Ten rules to follow while taking a CA loan:
- Make a budget: The value of the chartered accountant loan offered by most banks and NBFCs can go up to Rs 35 lakh. But you should borrow only what you need. Make a budget beforehand. Calculate how much you need to set up your firm, hire or buy an office space, buy furniture, etc.
- Have a good credit score: Check your CIBIL score first. If the score is low, you may find it difficult to get the loan. Do not worry; work on it instead. Close your other loans. Clear your credit card dues and pay off any debt you may have. This could improve your credit score. You may then be able to get the CA loan in no time.
- Review the repayment structure: Be careful when fixing the repayment schedule. Opt for EMIs that you can realistically afford. This may enable you to repay the professional loan without a hitch. This is a very important rule to remember.
- Opt for a reasonable tenure: While selecting a reasonable EMI, you should also try to select a short loan tenure. This can help you close the loan faster. This makes you more disciplined with your money.
- Check the interest rate: Reputable lenders like Bajaj Finserv provide competitive chartered accountant loan interest rates. Speak to your loan provider and see what the rate of interest is. You must be clear about the interest component. Review every other aspect of the loan before you take it.
- Keep the margin ready: The CA loan can provide the majority of the finances. But, you may still have to pay a margin. Select a margin that is rational and affordable. This can prevent financial hardships later on.
- Cover it with a term plan: It is always advisable to cover your professional loan with a term insurance plan. If something happens to you during the loan tenure, the sum assured can cover the loan repayment. It keeps trouble away from your family.
- Read between the lines: Read the fine print before you sign the loan documents. Look for the charges, fees, and other terms and conditions. Take the loan only if you are happy with the fine print.
- Do not look at it as a tax saver: Loans offer tax benefits in India. Now, a CA loan helps chartered accountants to expand their scope of work. Treat a CA loan as a loan and not a tax saving instrument. Take the loan only if you need it for professional reasons.
- Apply for one loan at a time: Do not apply for multiple loans for professionals at the same time. Every may check your credibility with CIBIL. The multiple applications reduce the chances of your loan getting approved.
In a nutshell:
Keep the tips mentioned above in mind. Always borrow only as much as you need and to pay it back with diligence. Taking a chartered accountant loan is very easy as the CA loan schemes are easily available online. So speak to your lender, assess your requirements and take a good loan to move up on your career ladder.
To apply for a CA loan from Bajaj Finserv, simply click here.