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Types of Chartered Accountant Loan- Full Explanation

A Chartered accountant’s first professional experience is through the 3-year articleship they have to do in the final years of their CA course. Post the articleship, individuals can either decide to begin their practice or take employment in a CA firm.

 

Most individuals decide to opt for the former as it allows them to pursue their interests independently. The costs associated with starting your firm can be substantial, and CAs largely prefer a loan for chartered accountants to meet the necessary expenses.

 

Chartered accountants can either avail general loans or chartered accountant loans. While chartered accountant loans are provided by financial institutions keeping in mind the various needs of CAs, general loans are for all types of individuals.

 

There are several types of loans for chartered accountant available for eligible prospects – personal loan, business loan, loan against property, and home loan.

 

Each loan type provides different loan quantum and attracts varying interest rates.

 

A personal loan for CAs is an unsecured loan, meaning you do not have to provide any collateral to avail the loan amount. A personal loan does not have any end-use restriction; thereby, it can be utilised for multiple purposes.

 

A loan against property for CAs is a secured loan, wherein you need to mortgage property to avail the loan. Consequently, the loan quantum is comparatively higher than other forms of unsecured credit and attracts a lower interest rate.

 

A CA business loan is similar to a personal loan, and the funds can be utilised to cover various necessary expenses.

 

CA home loans are advances to purchase real estate properties and are customised to meet the requirements of chartered accountants only.

 

You would need to have a practice of a minimum of 4 years and a document to attest the same to be eligible for the loan. You would also need KYC documents and other necessary documents to apply for a professional loan for chartered accountants.

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