How To Get The Best Loan For Chartered Accountants?
A loan customised for chartered accountants, called a chartered accountant loan, is a convenient and affordable source of financing for CA professionals. It refers to a suite of four loans including a personal loan, a business loan, a home loan and a loan against property. Getting the right CA loan can not only help you fulfil your monetary needs, but also ensure that repaying the loan is affordable and stress-free for you.
Here are a few guidelines you can follow to get the best CA loan:
- Identify The Purpose For Raising Finance
- Before taking a loan, it’s important to closely examine your financial needs. These may be broadly divided into personal or professional requirements. For example, you may need a loan for buying a new home or raising funds to finance your practice’s working capital.
- Mixing business needs with personal needs is not advisable, so take a specialised loan that best suits your purpose.
- Select The Type Of Loan And Amount
- Once you determine the purpose, choosing the right loan becomes easier. This also helps you decide on the amount of money that you need to borrow and the repayment tenor you are comfortable with.
- Over-borrowing is not a good idea as it puts an unwarranted repayment burden on you. So choose the amount you need carefully. You can also use the debt to income ratio (DTI) calculation to help you arrive at an amount. Ideally your DTI should not cross 40% (which means that 40% of your monthly income is used for repayment).
- Compare And Evaluate Interest Rates In The Market
- Before finalizing your chosen CA loan, analyse the market and review the interest rates offered by various lenders.
- This can help you narrow down on the lender that offers the lowest rates of interest. This can, in turn, make your EMIs more affordable.
- Ensure That You Match The Eligibility Criteria
- Not matching the eligibility criteria can result in your loan application getting rejected instantly. It is important to look into the CA loan eligibility criteria and ensure that you meet them all.
- This can increase the chances of your loan being approved. Usually, you will be eligible for a CA loan if you have at least 4 years of business vintage and your own or parental property.
- Organise Finances To Repay The Loan In Advance
- Before applying for a CA loan, make provisions for timely EMI payments. Ensure that you do not depend on a single source of income for this. Plan other means of repayment via your savings and liquidating investments in case your earnings experience a dip.
- Not organising finances can cause you to default on or delay EMI payments, which can force you to pay various penalties depending on your lender’s terms. This can also reduce your credit score.
- Be Aware Of Additional Costs
- Lenders often have a range of additional costs that are concealed in the CA loan agreement. It is important to enquire about these costs and calculate how much you have to pay in total.
- Knowing these costs and calculating the final figure can help you decide whether borrowing the loan is affordable for you. These costs include secure fees, processing fees, loan statement charges and penal interest.
In your search to find the best CA loan, look no further than Bajaj Finserv. Its Loan for Chartered Accountants offers convenient financing at competitive interest rates with fast approvals and disbursals. You can also gain from other advantages like a dedicated line of credit, online account access, preapproved offers, and more.