There are quite a few things to consider while applying for any kind of loan and a CA loan is no different. While there are many loan providers in the country, all claiming to offer the best interest rates, one should check out a few things to ensure that they are getting the most out of their loan. Here are a few things to consider when you apply for a Chartered Accountant Loan.
- Understand your requirements: First and foremost, it is important to understand one’s own loan requirements. That includes, not only figuring out the amount of loan that you would currently need, but also chalking out a meticulous plan about how much returns you can expect from the venture you are taking your loan for, so that by the end of the tenure, you would have repaid the loan without being a defaulter. Even if you are a CA yourself, seek professional help from another financial adviser for an unbiased opinion.
- Enquire about Collateral and Tenure: The interest can vary from firm to firm and you should do a thorough research among various banks, financial institutions and non- banking financial companies to see who are offering the best rates and the highest repayment tenure. Some also prefer applying for loan online for the simpler application process though not many firms do that. However, Bajaj Finance loan for chartered accountants, through Bajaj Finserv offers loans online to CAs, which are collateral- free as well. Some simply do not apply for loan because of the collateral they would have to offer and they do not want to take a risk in the beginning of their career.
- Eligibility Criteria: The CA loan eligibility criteria too differ from lender to lender and private firms can have their own additional criteria as well. Shortlist lenders whose eligibility criteria you are able to meet before you apply for the loan to avoid rejection during the application process, which can be quite disheartening.
- Documents Required: It is always important to keep all your documents handy before applying for a loan rather than looking for one after being asked for it after you have applied for the loan. Not only is the process delayed, but there are also chances that the application is rejected altogether. Documents like identity proof and address proof- Voter ID and Aadhar Card, age proof, salary slips, IT return documents, registration certificate in case of one’s firm are documents that are needed during this stage.
- Comparing Interest Rates: Always compare the CA loan interest rates when applying for a CA loan. As these loans often fall under the category of personal loans, the interest rate varies in different financial institutions as well. Lenders like Bajaj Finserv offer pre- approved loans in completive interest rates even for existing customers. Calculate the additional charges like GST and loan processing fee if applicable and form an idea about how much would you have to pay towards monthly repayments before you finally sign on the dotted line.