Eligibility Criteria that Needs to Be Fulfilled When Applying for a CA Loan

In a country of more than 125 crores citizens, the number of Chartered Accountants (CAs) in the country turns out to be a meager 2.82 lakhs. The nature of their work is highly varied ranging from financial planning and auditing to tax planning, wealth management, and a lot more. Owing to the nature of their work, such professionals are always in high demand.

When it comes to their own finances, chartered accountants need an external source of finance. There are many ways of obtaining that, however, the most convenient of which is a loan for chartered accountants. Depending on the nature of the purpose for which the loan is obtained, the loan amount can range from up to Rs. 35 lakhs to up to Rs. 2 crores.

Some of the eligibility criteria which need to be fulfilled are as follows -

Income

The CA applying for the loan must have a steady source of income. This is because lenders use income as a parameter for evaluating the repayment capability of a borrower.

CIBIL Score

The applicant should ensure that she/he has a healthy CIBIL score of around 750 or above. CIBIL score is a 3-digit score which demonstrates the repayment capacity of the borrower. As a result, the higher the credit score, the higher will be the chances of getting the loan approved.

Tax and Practice Proof

The borrower must also be a regular taxpayer and have a certificate of practice (CoP) of four years to establish their credibility.

Apart from the points mentioned above, the applicant should also ensure that all the required documents are available so that the process can go ahead. Some of the required documents include Proof of Cop, KYC documents, recent passport-sized photographs, IT returns, balance sheet, and property papers in case applying for a secured loan.

Read: What are the CA loan Eligibility Criteria an Applicant Needs to Meet?