Every individual, whether a salaried employee or self-employed, needs capital to cover numerous personal expenses. However, they may sometimes fall short owing to limited liquidity or if they want to avoid shelling out a big chunk of their savings in one go. Professionals such as chartered accountants look to get personal loans in such cases. However, it is important to know everything about a personal loan for CA and the application process before doing so.
What are personal loans?
Personal loans are loan products offered by lenders such as banks and NBFCs to individuals who want to raise funds to cover their expenses. These expenses may include numerous items such as buying a car, home renovation, marriage, higher education, vacation, etc. Lenders offer individuals personal loans to ensure they can raise immediate capital without going through a time-consuming application process. Like other types of loans, lenders offer personal loans at an interest rate that they decide based on the loan amount and the loan tenure chosen by the borrower. Once you get a personal loan, you are legally bound to repay the principal amount and interest to the lender within the personal loan tenure.
Personal Loans for CAs (Chartered Accountants): Features and Benefits
Lenders have realised that the capital needs of various professionals, such as chartered accountants, may differ based on their salary structure, the number of dependents, the volume of expenses, etc. Hence, keeping in mind the dynamic factors, quality lenders have designed personal loan products targeted toward the needs of CAs. A personal loan for CA is such a loan product that allows chartered accountants to raise immediate capital based on their professional profile. When CAs get a personal loan, the loan product comes with the following features and benefits:
Features and Benefits of Personal Loans for CAs
- Immediate Capital: A personal loan for CA allows chartered accountants to raise immediate capital by following a time-effective application process. When CAs get a personal loan from a quality lender, they approve the personal loan application within minutes of submission. Furthermore, borrowers get the loan amount credited into their bank account in under 30 minutes.
- Flexible EMIs: Personal loans for CAs offer an effective repayment tenure that starts at 12 months and goes up to 60 months. Quality lenders offering personal loans for CAs ensure that the borrower can repay the personal loans through flexible EMIs stretched throughout the loan tenure. Such flexible EMIs ensure that the borrowers can repay the loan effectively without experiencing any financial burden.
- No End-Use Restrictions: One of the best features of a personal loan for CA is its ability to offer the loan amount without any restrictions on the end use. When chartered accountants get a personal loan, they can spend it on any personal legal expenses without being answerable to the lender and showcasing the expenses incurred.
- Pocket-Friendly Cost System: Personal loans for CAs offer loan amounts starting from Rs 1 lakh to Rs 10 lakh, where quality lenders charge nominal interest rates to mitigate the overall repayment burden. Furthermore, such lenders offer personal loans for CAs with zero prepayment and foreclosure charges. With an attractive cost structure, personal loan for CAs offer a pocket-friendly loan product within a certain budget.
Personal Loan for CA: Eligibility Criteria
When CAs get a personal loan, lenders do not ask for a valuable asset; they must pledge it as collateral. However, in the absence of collateral, the risk for the lenders becomes high, as they have no assets to get back their loaned amount in case the borrowers default on the personal loan repayment. Hence, to mitigate such an event, lenders have created the following eligibility criteria for chartered accountants to decide whether to approve or reject their loan application. Here is the eligibility criterion to get a personal loan as a Chartered Accountant:
- Age: The chartered accountant must be between the ages of 21 and 60.
- Income: The chartered accountant must earn a minimum of Rs 25,000 monthly.
- Work experience: The chartered accountant must have existing practice for at least two years.
Personal Loan For CA: Documents Required
When chartered accountants get a personal loan, they usually apply online. However, the personal loan for CA application process requires the completion of KYC, where the borrowers have to upload and submit some personal documents to get the personal loan application approved. Here are the documents required to get a personal loan for CA:
- PAN Card (compulsory)
- Identity proof ( any of the following)
- Driving Licence
- Aadhaar Voter
- Identity Card
- Address Proof (any one of the following)
- Registered Leave and Lease Agreement
- Driving Licence
- Aadhaar Card/Aadhar Acknowledgement
- Voter’s Identity Card
- Utility bills like telephone bills, electricity bills, etc. (not more than three months old)
- Income Proof (all of the following)
- Latest 1 month’s salary slips
- Bank statements from the previous three months
How to Get a Personal Loan for CA Online: The Process
Although some lenders offer a personal loan for CA offline, where the borrowers have to visit the lender’s office with all the documentation, chartered accountants prefer to get a personal loan through the online process. It is because the online personal loan process is simple, straightforward, and saves time. Here is the process to apply for a personal loan for CA online:
- Step 1: Open the lender’s website and navigate to the “Personal Loan” page.
- Step 2: Click on the “Apply Online” button and enter your phone number.
- Step 3: Enter the OTP received on the phone number to open the application form.
- Step 4: Enter all the required personal and professional details.
- Step 5: Upload all the required documents and click on “Submit.”
Personal loans have become an ideal avenue for chartered accountants and other professionals to ensure they raise immediate and adequate capital with flexible repayment terms and attractive interest rates. However, as numerous banks and NBFCs offer personal loans for CAs and have different loan factors, such as the loan amount, interest rates, and loan duration, it is vital to understand everything about the loan process. If you have any future queries, you can head over to Piramal Finance to cater to your personal expenditure needs.