3 types of Professional Loans offered in India
Suresh Krishna and Ramesh Mohan were best friends. Suresh was a doctor while Ramesh was an engineer. Though their careers took off on the right note, both were looking to expand their work.
While Suresh wanted to open his own clinic, Ramesh was looking to start his own consultancy firm. Needless to say, both their ventures required a considerable capital which they lacked. Once, over a cup of coffee both friends were discussing their financial dilemma when they chanced upon professional loans available in the market. To their delight, each found a loan for their requirements and happily fulfilled their dreams.
Did you know that there are specially designed professional loans available in India? If you are a professional, whether salaried or self-employed, you can avail of these loans for furthering your career. Let us see the types of professional loans available in India:
- Loan for Doctors
These loans are designed specifically for doctors. Suresh found his answer in a doctor loan and availed one for his requirements. These loans allow medical practitioners to expand their scope of practice. Here are the salient features of the loan:
- Loans for doctors are allowed only to doctors who are working in a Government or a private hospital or a clinic.
- There is a minimum income criterion and doctors fulfilling this income criterion can avail a doctor loan.
- These loans are collateral-free loans. You don’t have to pledge or mortgage any type of security for availing the loan. Moreover, no guarantor is required for the loan.
- You would have to submit relevant documents to avail the loan. These documents include qualification certificates establishing that you are a qualified doctor, income proofs, bank statements, identity proof and address proof.
- Loan for Engineers
This loan is specially designed for engineers so that they can expand their scope of business or practice. These loans also have some salient features which are as follows:
- Loans to engineers might be offered as term loans or as a line of credit. In the case of term loans, a specific loan amount is given for a specified tenure and the interest is charged on the entire loan amount. In the case of line of credit, however, a credit limit is allowed to borrowers. You would be charged interest only on the amount of loan you withdraw. These loans are thus, more flexible and affordable.
- These loans are often allowed as pre-approved loans where considerable financing can be availed.
- Some banks and non-banking finance company (NBFCs) require a security to be pledged to avail an engineer loan. However, there are some lenders, like Bajaj Finserv, which offer this loan without requiring any collateral security or guarantor.
- Any self-employed or consultant engineer can avail this loan. Moreover, some lenders also allow engineer loans to salaried engineers.
- A minimum work experience is required. This means that the engineer looking for this loan should have worked as an engineer for a minimum number of years after graduation before applying for a loan.
- Loan for Chartered Accountants
Another professional loan is a loan designed for chartered accountants. These loans are allowed to self-employed practicing chartered accountants. Those chartered accountants who are salaried and working in a private or a Government company as a Chartered Accountant can also avail this. Here are some of the features of this loan:
- Loan for chartered accountants is offered both as secured loans as well as unsecured loans. If you have any security to pledge as collateral, go for secured loans for a lower rate of interest. However, if you do not have any security to pledge, opt for an unsecured loan. Though the interest rate would be a tad bit higher, the loan would be easily processed.
- In this loan too, you, as a CA should have a sufficient work experience working as a CA either in your own firm or with any company. Only then would you qualify for the loan. Fresh CAs with no experience might not be able to apply for the loan.
- Your educational qualification establishing you as a CA is important to apply for the loan.
Suresh and Ramesh found one loan each, what about you? Whether you are a CA, a doctor or an engineer, there is a professional loan designed just for you. These loans provide you with sufficient funds to further your career. So, find a loan meant for you and take your career to new heights.