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Quick Points to Remember When Opting for A CA Loan

Chartered accountants are very cautious when it comes to matter pertaining to finance. However, when it comes to personal matters, there are many instances when they too require funds to manage their personal and professional commitments. This is why there are a number of financial institutions including NBFCs (Non-Banking Financial Institutions) which offer loans which are tailor made for chartered accountants.

There are a few considerations which need to be kept in mind before opting for loans for chartered accounts, a few of which are as follows -

Budgetary Considerations

How much loan is needed by you is a question that you need to ask yourself before hitting that apply button. This is because not only will it help in managing your finances more efficiently but will also ease the repayment burden. A higher loan amount means higher monthly installments which means more time will be needed to repay back the loan.

CIBIL Score

Like every other loan applicant, chartered accountants will also be subject to the same verification process as others. This is the reason why it is equally important for them to maintain a good CIBIL score of around 750. Doing so will not only help in getting the CA loan more easily but will also provide you a lower interest rate than what is charged usually.

Repayment Tenor

You must choose the repayment tenor very wisely because for a given interest rate if the repayment period is short, then the instalment to be paid each month will be high. However, the total interest paid over the repayment period will be less and you will also become debt-free more quickly.

On the other hand, if the tenor is long, then the instalment will be lower but the total interest that will be paid will be higher.

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