Reasons Why CA Professionals Would Need To Take a Loan
Chartered Accountants who are still self-employed and have not yet joined a firm, often have a little difficulty in managing their finances, since they do not have a fixed income, yet. In such cases, it makes sense for them to apply for a CA loan, rather than trying to shoulder the responsibility of the bearing the entire financial burden on their own. A self-employed CA could still calculate their monthly EMIs while making the repayment, based on their average monthly income. In fact, in some cases, they have greater financial security, because private firms often downsize their employees without notice, leaving them high and dry. However, with the help of a Chartered Accountant Loan one could realize their dream of having a firm of their own or even expand one’s already existing firm.
Opting for a Chartered Accountant Loan comes with a wide range of benefits. Some of them are as follows:
- High Principal Amount: Many banks and NBFCs like Bajaj Finserv, have a very high principal amount threshold, as high as Rs 35 lakhs. This amount is more than enough to set up a new firm or expand one’s already thriving business. This is because, the profession of being a CA is not only a very respected one, but also one that promises very high returns and only in the rarest of cases is a CA not able to pay back his loan. Or else, being such a dependable profession, it gives the creditors the confidence to provide a higher principal.
- No hidden charges: CA loans are often cheaper in the long run than other kinds of personal loans. There might be other personal loan providers in the market who might charge a low base interest rates of CA loan, but they could have other hidden charges. There are also charges like processing fees or charges on pre-payments. One should take into account all these factors before zeroing in on a loan and NBFCs like Bajaj Finserv have specific customized loan options meant especially for CAs.
- Unsecured loans:Chartered Accountant loans are unsecured loans and that makes it so much easier to apply for, and get approved for the loan. One does not need to provide any collateral to avail the loan and nor is there any need for providing a guarantor. All one needs if a good enough credit score and a pay slips which ensures that the CA is well employed and is in a position to pay back the loan, then the loan gets approved quite easily.
- Easy repayment: Some banks and NBFCs like Bajaj Finserv have the option of flexi- loans which provides the loan applicant the option to pay back the loan on flexible terms. They allow the CAs to choose their own repayment schemes and some also have only- interest repayment plan- with the principal payable at the end of the tenure. One could also make part prepayments and increase the EMI amount to bring down the interests in the long run.
- Documentation: Lastly, most Chartered Accountant loans have very simple documentation and all one needs is the KYC documents, educational certificates, proof of employment through bank pay slips and IT returns of the last three consecutive years. Once these are in place, it is just a matter of time before the loan gets approved.
A CA, with his thorough knowledge of finances, will be able to calculate the repayment for his loan himself quite well and it would be the best option when it comes to managing the personal finances, or harbor hopes of establishing or expanding one’s firm, without having to over burden themselves with worry.