“How can we use CA loan?” is a commonly asked question about CA loan. Some people take a CA loan but fail to make optimum use of it due to lack of information. Thus, here are three common ways of leveraging a CA loan.
1. Support your child's education
Every father/mother dreams of providing quality education to their child. And one of the best use of Chartered Accountant loan is utilization for the realization of your child’s dream, to enrol himself/ herself in a renowned university for quality higher education. The added benefit of using CA loan for education purpose is, you become eligible to reclaim tax under Income tax section 80E.
2. Cover the wedding expense
Understanding that wedding can be an expensive affair in India, Chartered Accountant loan are allowed to be used to cover the expense of a wedding. You can plan a destination wedding for yourself and tie the knot in style. You can also use the capital borrowed from CA loan to finance your child’s wedding. Use of CA loan for marriage purpose is permitted by the financial institution, and thus, you won’t face any problem.
3. Debt consolidation
Debt consolidation using Chartered accountant loan is a common strategy used by many Chartered Accountants. Debt consolidation is an economical use of CA loan, allowing you to save a lot of money in the long run. However, it is advised to use CA loan for debt consolidation only if the interest rate of existing loans is significantly higher than CA loan.
Bottom line: Taking a CA loan can be your best financial decision as long as you use it in accordance with the loan agreement.
