loan for chartered accountants

Personal and professional loans serve a variety of purposes today in the financial and business sector. Gone are the days when you had to sit back because of a lack of funds to start a new business or upskill yourself. A professional loan can be availed by self-employed professionals like accountants, doctors, engineers, dentists, company secretaries, lawyers, architects, management consultants, etc. Professionals applying for a professional loan must be qualified in the concerned profession and must possess the proper skill set required to practice their trades.

Chartered Accountants can secure loans to construct new office premises, acquire office space, secure working capital, and for funding costs of furnishing and fixture of equipment. These kinds of business loans for chartered accountants are a no-collateral loan. Many financial institutions and banks are lending out unsecured loans for chartered accountants.

Need for a Loan for Chartered Accountants

A Chartered Accountant in India can secure a loan for one or more of the following purposes:
  • Purchase of equipment
  • Business expansion
  • Construction of the business premises
  • Renovation of the business premises
  • Cash for working capitals
  • Finance work-related foreign trips, seminars and conferences
  • Other business requirements
The loan for Chartered Accountants or loan for Company Secretary is designed to help them overcome a liquidity crunch in times of need.

Features of a loan for Chartered Accountants

Any business loan for a Chartered Accountant or loan for Company Secretary provides the following advantages that make it accessible. Let us consider the features of any such professional loan.
  • No collateral required
  • Attractive interest rates
  • Flexible loan repayment tenure from 36 months to 60 months
  • Simple application process
  • Quick disbursement
  • Convenient repayment options
  • Minimum documentation
  • After-sales service and support from the vendor

Interest Rates for a loan for Chartered Accountants in India

Loans for Chartered Accountants or Company Secretaries in India are professional loans and are offered at a slightly higher rate of interest than the regular personal loans. These rates of interest can be either Diminishing Rate of Interest or a Flat Rate of Interest. A Diminishing Rate of Interest means that the interest applies only to the outstanding principal amount. In this way, you pay to reduce EMIs as you move along the loan tenure. A Flat Rate of Interest is a fixed rate that remains constant along with the loan tenure. The EMI will remain fixed as it is repaid throughout your loan tenure. Generally, the interest rates of loans for Chartered Accountants range from 11% to 20%. These rates depend on several factors, like:
  • Applicant’s credit history
  • Annual turnover
  • Debt to income ratio
  • Number of years of operation of service
  • The financial health of your business
  • Type of lender
  • Lender credit policies applicable at that time

Here is an overview of the terms of the loan for chartered accountants or company secretary.

Loan Amount

Rate of Interest

Tenure

Processing Fees

Up to ₹1cr lakhs

1 to 2% per month 

Up to 36 months

1 to 2.0 % One time

Eligibility Criteria to take a loan for Chartered Accountants

All personal and professional loans come with their own set of eligibility criteria that needs to be fulfilled for the credit to be approved. The required conditions to secure a loan for Chartered Accountants are as follows:
  • The applicant needs to be a professional Chartered Accountant
  • The applicant must be practising the trade successfully for at least two years
  • The applicant must be a licensed self-employed professional and possess a CA license issued by the ICFAI.
  • Age of the applicant should be minimum 21 and maximum 65 years (The age criteria differs from one lender to a lender).

Documents Required to borrow a loan for Chartered Accountants

Certain documents are required to be submitted by the applicant before the loan for Chartered Accountants gets sanctioned. Here is an overview of the required documents.
  • Identity Proof-PAN Card of the Company /Firm/ individual.
  • KYC documents – Aadhaar Card/Passport/Voters ID card/driving license/Pan Card.
  • Residence Proof – Aadhaar Card/Passport/Voters ID Card/Driving License
  • Bank Statements for the last six months
  • Latest ITR, Balance sheet and Profit & Loss a/c for the previous 2 years, duly attested by a CA.
  • Proof of Business -ITR / Trade license
  • Other documents as required by the lender

Why Choose Lendingkart?

Lending Kart is a popular NBFC offering loans for Charted Accountants. With us, acquiring a loan is hassle-free with a processing time of just 72 hours. Also, the rate of interest we offer is very less when compared to other competitors with a substantial amount of loan as per the needs of the borrower. Moreover, we do not require any security or collateral when it comes to applying a loan. In all, our system is fast and convenient.

Chartered Accountants Business Loan FAQs:

1. What is the maximum amount of the loan that can be secured for Chartered Accountants?

The maximum amount varies from lender to lender depending on their credit policies. The amount can range from ₹25 lakhs to ₹50 lakhs without collateral. Some lending agencies offer loan amounts up to ₹ 1 crores with collateral.

2. Are there any age limits for securing the loan?

Yes, the age of the applicant should be a minimum of 21 years and a maximum of 65 years at the time of applying for the loan.

3. What is a Flexi loan?

A Flexi Loan is a Flexible Term loan, where the borrower can withdraw as per his needs. Here, the borrower will pay interest only on the amount used. He can repay the loan as and when funds are available.

4. What is the process to avail this loan?

The process to avail the business loan for CAs varies from lender to lender, but generally follows the following steps: I. Apply for the loan II. Submit/upload your documents III. Loan processing by the lender IV. Loan sanction, if approved V. Loan disbursement

5. Will an existing loan affect the loan approval?

This generally depends upon the lender’s policies, the applicant’s credit history and debt to income ratio.

6. Can these loans be prepaid?

Yes, the borrower can prepay the loan after payment of minimum (up to) 6 EMIs, depending upon the lender’s criteria. Foreclosure charges would apply in such cases.

7. How much time does it take to disburse the loan?

Most of the lenders take 2-5 days to process the loan and verify your documents. If everything is well, the loan will get approved, and it takes from 5 to 10 days for the loan amount to be credited to your bank account.