Chartered accountants are regarded as indispensable contributors across industries for their extensive services. These contributions include services in terms of strategic business management, tax-related services, peripheral and financial matters.
However, the current shortage in the numbers of these capable professionals in India has created a void that must be fulfilled. Such a gap has also presented aspiring CAs, or the ones currently practising, with an opportunity to capitalise on. Practising CAs can now further their firm’s expansion with the help of a loan for chartered accountants. Such funding opportunities are available for these professionals, even in jobs. So, here’s a quick look at some essential things CAs should know about these professional loans available to fulfil their diverse funding needs.
What is a chartered accountant loan?
A chartered accountant loan is a customised financial product for CAs in practice or in a job. They can avail the advance to fulfil either their personal or professional requirements with ease. Typically, there are four types of chartered accountant loans –
- Personal loans for CAs
- Business loans for CAs
- Home loans for CAs
- Loans against property for CAs
CAs must, however, fulfil the lender’s eligibility criteria before applying for any of them. Also, before going ahead with the application process, they must keep in mind some factors that may affect loan processing.
Top 4 things to keep in mind when availing a loan for CAs
Maintaining a good credit score
An individual’s repayment capacity is directly affected by his/her credit behaviour. Hence, financial institutions check the credit score to assess their creditworthiness. Before applying for a loan for chartered accountants, individuals must thus review their credit score.
Holding a higher credit score of 750 or above will help borrowers to negotiate better terms with the lender. Also, they can practice discipline in availing and repaying credit to keep this score high.
Evaluating the loan options
Assessing the current market is vital before applying for a professional loan for chartered accountants. CAs should thus go for a detailed analysis of available loan options to make an informed decision.
They should further opt for a credit that suits their requirements adequately. At the same time, they must not forget to check the repayment tenure and interest rate to select an option that remains affordable while fitting their repayment capacity.
Keeping updated income proof
Chartered accountants willing to expand their practice with additional business funding must keep their income documents handy and updated. It streamlines the loan application process, and saves an applicant from unnecessary delays.
When an individual applies for credit, the financial institution asks for documents like salary slips, income tax returns, bank account statements, financial statements, etc. Thus, keeping them up to date before applying for a chartered accountant loan will streamline the entire process.
A suitable decision regarding the loan amount to avail
Based on his/her current financial condition, a borrower may be eligible for a set amount. However, that does not mean that he/she must borrow the full amount. Instead, applicants should evaluate their requirements, and based on that, apply for the amount they need. It will aid them in repaying the credit without much hassle.
On the other hand, it may sometimes get difficult to assess the exact funding requirement. For instance, if a professional has plans to expand his/her business, in that case, it may get difficult hard to estimate the final cost from the beginning. In such cases, borrowers can opt for a loan for chartered accountants with Flexi Hybrid feature. Under this facility, they withdraw as per their requirements from a pre-sanctioned loan amount and repay conveniently in easy EMIs with interest charged only on the amount withdrawn.
NBFCs like Bajaj Finserv provide this feature with their customised loans for chartered accountants. Along with that, the company offers benefits like flexible repayment tenure, minimal documentation, online account management, etc.
The lender also provides pre-approved offers to streamline the entire application process and help saves time. These offers can be availed for multiple financial products like business loans, personal loans, etc. Check your pre-approved offer by submitting your essential contact details.
For a chartered accountant, career opportunities are not limited. Newly qualified CAs can thus also take the assistance of a step by step guide to starting a CA firm, which will help them to set up their own venture. Later in the practise, such loans for chartered accountants can be critical in raising capital for business expansion.
The contributions of chartered accountants are critical to every business, irrespective of the industry. They provide essential services in terms of taxation, auditing, finance, business cost and benefits analysis and more, and also help adhere to other protocols associated with running a business. Additionally, they play a pivotal role in the growth of a company as well as the economy. However, the availability of CAs is limited as compared to their demand in the economy.