There are four types of loans for professionals available in India – personal loans, business loans, home loan, and loans against property. Such loans are tailor-made for specific professionals including CAs to help them meet their varied financial requirements.
While such is the case, you should consider following certain rules which would improve their chances of loan approval. These rules would facilitate you to make an informed decision in tune with your current and prospective financial capacity.
Firstly, check your credit score and ensure you have a score above a certain mark to be eligible for loans from reputed financial institutions. Higher credit scores ensure you can avail a professional loan at lower interest rates and vice versa. Check whether your credit score is at par or above par in comparison to common requirements from lenders.
Secondly, have your practice certificate handy. Lenders, when advancing loans for professionals, consider the Certificate of Practice (CoP) and prefer a few years of practice for loan approval.
You should also have an acceptable FOIR or Fixed Obligations to Income Ratio. It will assure your respective financier of your repayment capability and aid in a loan approval.
Also, decide on a convenient repayment tenor as per your financial affordability. Repayment tenor is quintessential to your EMI amount and total interest payable. Therefore, duly consider such repayment tenor before applying.