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Reasons Your CA Loan Application Might Not Get Approved

Being a chartered accountant you can easily avail capital from leading lenders such as NBFCs or financial institutions. This is an exclusive suite of loan which includes - personal loan, home loan, business loan and loan against property.

 

But, due to lack of proper information or other reasons your loan application might get rejected. To avoid such a situation here are important things you must take care of, before applying for the CA loan.

 

CIBIL score

 

Ideally, to avail a preferable loan amount you must have a good CIBIL score of 750+ or more. However, if your score is lower than the needed mark you may start clearing up your past dues. Though this practice may take the time it will eventually improve your score and help you acquire the right funds for your business.

 

Also, because this is an unsecured loan where you do not have to furnish any collateral/ security lenders insist on checking the creditworthiness of the applicant. From this perspective too having a reliable payment history helps you win the trust of the lender faster. You may even get to negotiate loan terms with your lender.

 

Income Source

 

To avail a higher loan amount of up to Rs. 35 lakhs as an applicant you must have a business vintage of at least 4 years with CoP (Certificate of Practice). This is to ensure the lender that you are capable to pay back the loan and would not default.

 

Paperwork

 

You can easily apply online for the loan with basic, minimum documentation. However, make sure to maintain proper paperwork in order to get your loan application approved.

These include - CoP certificate, KYC documents, bank statements and passport size photograph.

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