written by | March 23, 2022

How to Avail the Best Loan Options for Chartered Accountants?

Whether it's about meeting miscellaneous expenses or consolidating debt, loans make us beneficial in so many ways. However, if you want to expand your operation scale, professional loans shouldn't be your choice. The professional loan is also called a business loan. If you're a chartered accountant, you can avail of a professional loan for chartered accountants and benefit your business. 

So, what are the reasons for availing of a professional loan for CA? What features are on offer, what's eligibility, and what flexibility can you expect from the banks in repaying the loan? 

We cover all these in the following sections.

Did you know?

The Indian government offers many highly supportive schemes to small-scale business owners, including CAs. These schemes include MSME Business Loans, MUDRA Loans, Stand-Up India, CGFMSE, and NSIC. Eligibility criteria are simple in all of them.

What Is a Professional Loan for CA?

Professional loans for CA are specially customised to meet the business requirements of CA, and various vital requirements are taken into consideration. A CA can avail of this loan for meeting the following requirements:

  • Meeting working capital requirements
  • Buying office premises
  • Business expansion
  • Purchasing equipment

Why Think About Availing a CA Loan?

CA professional loans suit the unique requirements of people in this business, and there are ample reasons which can attract you toward approaching banks for availing this loan. The reason includes: 

  • Expand or renovate the existing space
  • Scale-up operations
  • Establish or buy new office space
  • Pay for overhead costs
  • Upgrade your office infrastructure
  • Hire new staff
  • Meet working capital requirements 

Also Read: How to start your own Consultancy Firm in India?

Top Considerations for Availing a CA Loan?

Amount of Loan

In HDFC bank, you can obtain up to ₹40 lakhs (₹50 lakhs at select areas) loans at the expense of chartered accountants. It is a Business Growth Loan offering that suits your specific requirements. In this way, you'll find the most competitive loan deal today. The maximum amount you can borrow for CA could differ from bank to bank. 

Overdraft Facility

Chartered accountant loans through Indian banks will help with your business requirements. You can avail advantage of the overdraft facility, and a separate account sets the maximum amount for this facility from your current one. Also, you'll only need to pay interest on the amount you use.

Balance-Transfer Loan

If you're looking to profit from a great loan deal and fewer EMI options, you must search for the option of transferring the balance of your loan.

Flexible Tenures

According to your needs, you should get a loan for chartered accountants with a term of at least 12-48 months.

No Hidden Charges

A fixed processing pre-decided fee on interest rates for loans and no hidden costs are what you should search for when choosing the bank.

Documentation Required

For chartered accountants, the document requirements for Professional loans are similar to what is needed for KYC to open a bank account. A few financial institutes and banks may demand some additional documents during loan processing. Let's know the vital documents required:

Business proof – Practice Certificate, Partnership Deed, Qualification Certificate, Shop Act Licence, MOA, AOA.

Address proof – It includes an Aadhaar card, passport, Sale deed, driving licence, Ration Card, Telephone Bill, Electricity Bill, or Property Purchase Agreement (if the purpose of the loan owns a property).

Photo Identity proof –  It includes an Aadhaar card, passport, driving licence, voter ID, and PAN card.

Income Proof – It includes Bank statements of the previous six months to check your present-time financial position, newest ITR, newest audited financials (including the balance sheet and profit/loss account for the previous 24 months).

Before you opt for a CA loan, understand how types of KYC frauds take place to avoid unnecessary cash.

Eligibility for CA Loan

Eligibility criteria vary from lender to lender. If you want to get a CA loan, here's the list of basic criteria you need to pass:

  • Practice certificate with post qualification work experience of at least four years
  • ₹1 lakh minimum annual income
  • Should age between 25-65 when the loan matures
  • Good CIBIL score
  • Business must be profitable in the past two years

Best Financial Institutions for Availing a CA Loan

Bajaj Finserv Lending for Chartered Accountant Professionals

Bajaj Finserv gives a customised loan to Chartered Accountants. The loan is available up to a maximum of ₹35 lakhs within 24 hours, without collateral. The loan is useful to fulfil various needs for a CA. You can use it to purchase new files/books, new offices, or pay off old loans and many other things.

Features

  • You can manage and view the loan balance online.
  • You don't need any collateral or a guarantor to get the loan.
  • The money of loan you'll get to your account will be within 24 hours following the submission of all the required documents.
  • You must provide the vital documents to begin the loan procedure.
  • You can arrange the repayment for the loan in 12-60 months.
  • Avail Flexi loan facility as well.
  • Bajaj Finserv's loan offers door-to-door service for the entire loan process.

Eligibility

  • You must own a home or office, or at least your parent's home in the area where Bajaj Finserv can provide the service.
  • The Chartered accountant should hold a certificate of practice (at least four years) at the time when applying to borrow the money.

Also Read: Simple Yet Effective Tips To Open A Travel Agency

HDFC Chartered Accountant Business Loan

HDFC Bank is the top most reputable institution in the private sector industries. Also, consequently, you can apply for an unsecured business loan that does not require collateral, and you can apply for an amount up to ₹75 lakhs per your needs.

Features

  • It allows you to pay a processing fee of less than 0.99% on balance transfer facilities.
  • The procedure is simple and quick disbursement.
  • You can choose to pay your EMI by your preferences.
  • The repayment time is between 12 and 60 months, as per your preference.
  • You can transfer your balance with a lower interest rate of 13.29 %.

 Eligibility

  • The annual minimum earnings of the CA should be at least ₹1 lakh per year.
  • Minimum age of 25 years is required.
  • The Chartered accountant must have at least four years of post-qualification.
  • The maximum age cannot exceed 65 years at the point of reaching maturity.
  • A recent statement from the bank for the last six months is also crucial.
  • A business should be in Profit for the past two years.

Axis Bank Chartered Accountant Business Loan

Axis Bank is among the top banks in India to obtain business loans. They offer loans to chartered accountants at a low-interest rate that starts from 14.25 per cent per year. This loan is a no-collateral loan, and it can offer you up to ₹50 lakhs with the help of a six-month statement from the bank.

Features

  • There will be no partial payment or foreclosure fees.
  • It is a no-collateral loan.
  • It provides an option for a flexible repayment term, which you can use for 48 months.
  • Loans up to ₹50 lakhs.
  • A smaller number of documents are needed.

 Eligibility

  • The borrower's minimum age is 21 years old, and the maximum is age 65.
  • Gross receipts must be at least ₹5 lakhs or above.
  • CA must be in the same field for two years.
  • Six months of bank statements are required.
  • Last two years ITR along with P&L statement and balance sheet. 

IDFC Bank Chartered Accountant Business Loan

IDFC Bank is a growing bank that can provide loans to chartered accountants businesses that don't require collateral. It is easy to get money ranging from ₹1 lakhs to ₹25 lakhs.

Features

  • The minimum amount of paperwork is needed.
  • A maximum term of 48 months.
  • You can get a loan with no security.
  • You can take out an amount of loan as high as ₹25 lakhs according to your needs.
  • Get a loan at a reasonable rate of interest.
  • You can pick up the documents at the doorstep.
  • Free loans with collateral.

Eligibility

  • One of your possessions in your office or home space.
  • The maximum age for borrowers of 65 is at the time of loan maturation.
  • The minimum age requirement is to be 25 years old.
  • Recent 3-month bank statement.

Lendingkart Chartered Accountant Business Loan

Lendingkart is a well-known financial institution offering an unsecured business loan that allows Chartered accountants to support them to expand their business. It has a low-interest rate when compared with the other institutions of finance.

Features

  • The interest rate is between 1-2 per cent per month.
  • The processing time for loans takes 72 hours.
  • This loan is easy to obtain.
  • The interest rate is extremely low compared to other competitors.
  • It is easy to complete the process for loan applications.
  • It provides a flexible term to pay back the loan amount.
  • The institution doesn't require any kind of collateral or security.

Eligibility

  • Bank statement for the past six months.
  • The applicant should be a professional Chartered Accountant.
  • The borrower has to successfully practice for 2 years at a minimum in the same field.
  • The minimum age should be 21 years old and the applicants' maximum age of 65 years.
  • The CA must have a valid licence granted by the ICFAI.

Conclusion

CAs can enjoy multiple benefits from such loans. However, you need to have experience and a professional degree in this field to avail of this loan. The other process includes minimum documentation, simple eligibility criteria, and nothing more if you satisfy that requirement. You can enjoy very low-interest rates and avail yourself of huge loan amounts.  

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What is a Mudra Loan for Chartered Accountants?

Ans:

The Indian central government launched MUDRA Yojna to support small-scale businesses in terms of finance.

Q: Is an SBI Loan for Chartered Accountants a good choice?

Ans:

Yes, SBI is a highly dependable and generous bank regarding all types of loans.

Q: Is a personal loan for Chartered Accountants different from a professional loan?

Ans:

Yes, a personal loan for CA differs from a professional loan in terms of tenure flexibility, EMI, size, eligibility, etc.

Q: Which are the best banks offering CA loans?

Ans:

Many banks/financial institutions offer professional loans to CAs. Some of these include:

  • Corporation Bank
  • HDFC Bank
  • Bajaj Finserv
  • ICICI Bank
  • Federal Bank
  • Fullerton India 
  • Bank of Baroda

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.