In the last few years, leading financial institutions across India have made a suite of loans available for chartered accountants that are tailor-made to suit their unique financial requirements.
These loans constitute four types of advances, viz business loan, home loan, loan against property and personal loan for chartered accountants.
Each of these advances proffers several benefits that can make it easier for CAs to finance their big-ticket purchases without putting a dent in their savings.
For instance, personal loans are unsecured advances which can be utilised to finance one’s wedding expenses, medical emergencies, education costs, trip expenses, etc.
On the other hand, business loans for CAs can be utilised to expand one’s firm, manage late payments from clients, etc.
Home loans and loans against the property from the suits of loan for chartered accountants have secured advances, available against attractive rates of interest.
Among them, the former can be utilised to purchase/construct a residential property, wherein the latter does not have any end-use restriction.
Further, these loans offer attractive benefits that make them extremely useful to fund high-value expenses.
Nonetheless, before applying, CAs should ensure that they satisfy the eligibility criteria put forth by financial institutions to avail such advances and facilitate a hassle-free application process.
In May 2020, the government even revised the definition of MSMEs to eliminate the differences between manufacturing and services sector and bring more enterprises under this ambit.