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The Important Factors to Know: Applying for Professional Loan

Chartered accountants in India can apply for both secured and unsecured loans. These loans are tailored to suit the various needs and financial obligations which a CA can have.

Several financial institutions offer these loans to CAs, which they can utilise for multiple purposes.

They can decide to finance their firms or start an independent practice with the loan amount or meet other personal financial obligations such as a vacation, marriage expenses, etc.

However, there are certain factors which they should consider before they apply for a CA loan. These factors include individual eligibility criteria as institutionalised by a preferred financier.

Upon meeting these eligibility criteria, individuals also need to produce a handful of documents necessary for approval of the loan.

An integral part of such documentation would be a Certificate of Practice (CoP) which should show at least 4 years of practice till the date they apply for such a chartered accountant loan.

Individuals should also take into consideration their credit score when they apply for a professional loan.

Most reputed financial institutions such as Bajaj Finserv prefers a CIBIL score above 750 to ensure the applicant’s creditworthiness.

While there are a few financiers who offer loans with a credit score below 750, interest rates on the same are higher than average.

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