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Factors to Keep in Mind when Availing Loan for a Chartered Accountant

Chartered accountants play a key role in the Indian economy. There are more than 2.8 Lakh practising CA in India, working in association with different companies or working as self-employed individuals.
 

These individuals require a large amount of financing to cater to several personal and business requirements. Financial institutions offer advances tailor-made to suit the unique need of practising CAs in the form of a loan for chartered accountants.

Owing to the varying nature of their needs, different categories of loans are available for chartered accountants. Accordingly, the loan amount, interest rates, eligibility criteria and other key factors also varies.

  • Some of the commonly available loans for chartered accountants include -
  • Business loans for chartered accountants
  • Home loans for chartered accountant
  • Personal loans for chartered accountant
  • Loan against property for chartered accountant

Of these, business loans and personal loans are secured, while home loan and loan against property are secured loans.
 

Once you have decided the type of loan you want to opt for, then you can follow the below-mentioned steps to apply for the loan -
 

Lender
 

This is one of the most important steps. One of the best ways of choosing a lender is by first talking to your friends and family and then checking their claims online. This way, you will get the best information from both the worlds.
 

Interest Rate
 

The interest rate will have a direct effect on the amount of instalment which you pay each month. Thus, when comparing lender, the interest rate should also be a prime consideration. Further, interest rates are of two types - fixed and floating. Fixed, as the very name suggests remains the same throughout the length of the repayment tenor while floating on the other hand, keeps fluctuating with the market conditions. When the averages of the total interest paid is considered, it turns out that floating is actually more economical than fixed.
 

Application
 

Before applying with any lender, make sure that you check their eligibility criteria. If you are able to satisfy it, then there are two ways of applying for the loan - online or offline. The latter is the conventional method wherein you visit the branch of the lender and then apply for the loan.
 

However, if your lender has provided the option of applying for the loan online, then you can visit the website of the lender and do the needful. This is very helpful as not only do you not need to visit the lender repeatedly but you can also track the status of the application anytime that you feel like.

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