5 Important Questions To Ask Yourself When Finalising A Lender For Your CA Loan
You may have a to-do list for yourself that makes you more organised and helps you achieve your business goals with ease. Similarly, a list of questions regarding your CA loan will help you think more effectively and choose the right lender based on your unique requirements. Questions on CA loan penalties, interest rates, application procedures and more will help you narrow down on a lender who offers you the features you want.
To help you get started, here are some important questions you should ask yourself:
- What Is The CA Loan Eligibility Criteria Required By Lenders?
- While some lenders have stringent eligibility criteria, others can offer more relaxed terms. It is important for you to know and match the CA loan eligibility criteria, otherwise your loan application will be immediately rejected. You can compare the eligibility criteria of various lenders and choose a lender that offers you criteria that you can meet without any hassle.
- Once you meet the criteria, the next step is to see the list of documents required for submission. Collect them in advance to hasten your loan application process.
- What will your EMIs amount to?
- Most lenders will offer you an online EMI calculator to help you determine your prospective monthly repayment amount. This way, you will know if that particular loan is affordable for you.
- This also helps you increase or decrease your principal amount based on what you can comfortably repay. It can also help you choose the right tenor. Finally, it can help you compare the interest rate offered by different lenders and see the difference in EMI amounts that different interest rates can make. Selecting a lender with a nominal interest rate can help you save on your income.
- Is the Loan Secured Or Unsecured?
- Before applying for a loan, it is important to consider what type of loan you want to borrow. You can either go for secured or unsecured loans.
- If you have financial assets ready to be put at stake as collateral, you can go for secured loan options, like a home loan or a loan against property.
- If you are uncomfortable with putting your assets at stake, you can opt for unsecured loans. Nowadays, unsecured loans are just as easy to apply for as secured loans. Personal and business loans are both unsecured loans under the suite of CA loans. Once you know what kind of loan suits you best, you can choose a lender who offers it.
- How long will it take you to repay your chosen loan?
- This is an important question as it can help you decide on your tenor and the right lender.
- If you want to repay fast and have a substantial income, you can go for a short tenor. If you want to spread out your payments into smaller amounts, opt for a longer tenor. You can choose a lender who offers you flexible tenors based on your requirements.
- Would you be charged a penalty for missing a payment?
- You may be forced to delay your EMI payment because of a range of reasons, like emergency expenses or other priorities. Before applying for the loan, it is always good to enquire about the repercussions for missing an EMI payment.
- Lenders normally charge 1% as an EMI bounce fee in case your EMI cheque bounces. However, the terms and penalties for missing an EMI vary amongst lenders.
- Knowing about these charges can allow you to financially plan your repayment so that you do not end up missing the payments. This will also help you choose a lender whose penalties are more relaxed.
Finding answers to these questions can improve your borrowing experience and choose a suitable lender. Some other questions you can add to the list are:
- What is the application process and can I apply online?
- How long will it take for my application to be approved?
- How long will it take for my loan to be disbursed?
- Can I opt for a line of credit facility instead of a term loan?
- Will I be allowed to prepay the loan? Will I have to pay any prepayment charges?
- Will I get secure online access to my loan account?
Once you know the answers to these questions, you are one step closer to selecting a lender. In your search for the right one, don’t forget to add Bajaj Finserv to your list. A Loan for Chartered Accountants from Bajaj Finserv checks all the right boxes and helps you receive benefits like nominal interest rates, flexible tenors, and pre-approved offers.