6 Steps to get an online Chartered Accountant (CA) Loan

A number of professionals who start their own businesses realise the need for more money not only to maintain but also to grow their business. A qualified and experienced CA normally plans to branch out on his own and seeks additional financial assistance a few months into his / her business. As these professionals are too busy to run after institutions for loans, many financial organisations have started providing online loan for professionals CAs .They can easily avail of these loans once they follow certain steps, in fact just 6 steps as under, for an online loan.

1. Assess and understand the loan requirement with specifics on the amount needed, the end use of funds as well as the feasible repayment schedule
2. Do research on available loan offers for professionals. Financial institutions including banks offer amounts ranging from INR 20 to 50 lacs per professional.
3. Check their eligibility as per the criteria laid down by different loan providers. These relate to their expertise in the field, clients on hand and in the pipeline and expected cash flow over the coming years.
4. Prepare and provide the required documents such as identity proof, educational qualifications, address proof, bank statements and ITR for income proof and last three months’ salary statement if relevant, all these, to be authentic and verifiable.
5. Compare rates of interest on these professional loans, most of which are offered as a collateral free personal loan and may carry high rates of interest.
6. Once all preparatory work is done, apply online, uploading all the required documents.

The sanctioning authority will process the application quickly once the documentation is complete and the loans with repayment schedules ranging from 12 to 48 or even 60 months are sanctioned and funds made available within a few days of sanction.

Most professional loans are granted for working capital requirements and help boost the business. CAs with a good academic record and experience with reputed firms obviously get quicker approval provided their documentation is in order. While a number of non-banking financial institutions like Finserv Markets were the first to offer such professional loans for Chartered Accountants, a few banks have also started offering such loans.

Needless to say, this approach is welcomed by a number of CA professionals who need to spend all available time with their clients.