Despite the projected GDP contraction of 7.8% in India, the demand for skilled professionals has been on a consistent rise for cross-industry requirements. Given the indispensable contributions of chartered accountants to the economy, their increasing demand is not a surprise. Skilled professionals like them are thus in charge of handling crucial decisions to amplify a company’s financial situation.
After their degree completion, chartered accountants thus have the option to join a company, or start their own firms. Either way, a CA loan, tailor-made for such professionals extends the necessary funds required to manage any financing need that may arise, be it personal or professional. These advances can thus be put to effective use to maximise benefits thence received.
5 Ways one can effectively use a CA loan
Here are some prominent ways of using a professional loan like this –
- Debt consolidation
Personal loan for chartered accountants can be suitable used for debt consolidation. If individuals carry multiple EMI burdens, they can pay off such other credits using these funds and then repay such credit consolidated into one. Hence, they can get away from the hassle and save substantially on repayments as well.
- Renovation of office space
One can use these funds to renovate the existing business as well. Borrowers can purchase new equipment and furniture, or they can use it to opt for repairing works in their offices as well.
- Expand the practice
A financial product like this also helps professionals to meet the financial requirements of expanding their practice. An expansion of business includes renting a bigger office, upgrading infrastructure, hiring additional staff, etc.
Therefore, instead of taking advances from working capital, one can use a loan against property for chartered accountants to meet such big-ticket expenditure.
- Support working capital needs
Professionals can use a CA loan to support the working capital of their businesses as well. In case of any shortfall or irregular cash flow, one can use this financial product to manage everyday expenses of the company.
- Fund home renovation
On the personal front, a loan for chartered accountants is a great option for these professionals to meet their home renovation expenses. They can use these funds to fulfil an array of expenses such as repairing works, purchasing furniture, etc.
These are some notable uses of a CA loan, whereby the features of these advances make borrowing and repayment hassle-free.
Features of loans for chartered accountants
Here are some notable features of a loan for chartered accountant –
No end-use restrictions
With some of these funding types, such as a personal loan for a CA, there are no restrictions over the usage of funds availed. Hence, one can meet any expense that surfaces without having to worry about any usage restriction.
The loan disbursal time is a prominent feature of this financial product. Professionals can apply online and submit the necessary documents, whereby following a verification, they will quickly receive their loan amounts. Typically, it takes 24-48 hours to complete the process.
Another notable feature of a CA loan is that it offers flexibility in repayments. It helps professionals to manage their debts, and choose repayment tenures of their choice.
Moreover, to avail the benefits of this financial product, one needs to fulfil the required eligibility criteria and submit necessary documents.
To apply for this financial product, a chartered accountant must carry a ‘Certificate of Practice’ (COP), whereby the vintage requirement for their practices may differ from one lender to another. Moreover, if they are planning to get a secured loan, they must provide the said collateral.
Additionally, to complete this process, one needs to submit the following documents as well –
- KYC documents.
- Income tax returns of two previous years.
- Documents of collateral for secured loans.
Moreover, with lenders like Bajaj Finserv, professionals can now avail funds without any hassle.
Their pre-approved offers streamline the loan application process, making it convenient and less time-consuming. These offers are available on different financial products like business loans, personal loans, etc. One can check his/her pre-approved offer by submitting the essential contact details.
A CA loan is a versatile financial product that can fulfil professional as well as personal funding requirements. However, before moving ahead with the application process, one can create a 3-point checklist, and proceed accordingly to avoid any rejection.