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What Is A Professional Loan?

Business Finance

Working professionals such as architects, chartered accountants, company secretaries, lawyers and doctors are usually looking to expand their services or invest further in their own existing / new practice. Professional loans are targeted at such people to help them meet their ambitions. Through this blog, we shall see the different aspects of professional loans and how to avail them.

Benefits of a Professional Loan

Some of key benefits and advantages of a professional loan are listed below:

  • While there are several secured professional loans which can be obtained by using your property as security, one of the unique benefits of a loan for working professionals is that they can also be availed without putting up any collateral. This is extremely helpful for young professionals who are in the process of setting up their practices.
  • The process is hasslefree and paperless. It can be easily concluded online without the need of complicated documentation, as shall be explained in a later section.
  • The loan approval is very quick and disbursal does not take long either.
  • There are several customized options available regarding prepayment and part payments of the loan amount.
  • Due to the prevalence of several banks and non-banking financial companies (NBFC) in this segment, loan seekers get competitive rates with minimal additional charges incurred.

Eligibility Criteria

While the eligibility criteria may differ slightly among different lenders, described below are the common factors that most lenders consider in general.

  • The borrower must be a resident of India between the age group of 21 years to 65 years.
  • In case of an existing practice, the minimum income should be Rs.1 lakh per annum.
  • People with 4-5 years of prior experience in their field stand to get better loan amounts.
  • People trying to set up a new practice should possess a professional degree or diploma in their line of work.

Documents Required

The documentation needed while availing a loan for working professionals is basic and minimal. However, just like the eligibility criteria, the documents required are also bound to vary between different lenders. In order to guide you in the process, here is a list of the most commonly sought documents by the lenders.

  • Identity Proof- PAN Card, Aadhar Card, Passport, Voter ID.
  • Address Proof- Aadhar Card, Passport, Voter ID, Driving License, electricity or telephone bills.
  • Bank Statements for the business / self (including salary slips for salaried people) for the past 6 months.
  • Income Tax Returns and Form 16 for last 2 years
  • In case of existing practice – Profit and Loss statement of the business
  • In case of setting up a new practice – Copies of your professional degrees/diplomas
  • In case of a secured loan – Documentation of the property offered as collateral.

How to Apply for a Professional Loan?

Armed with all this knowledge, you can now conveniently apply for a professional loan online by following these basic steps:

  1. Visit the website of your chosen lender and go to the professional loan application page
  2. Carefully and accurately fill the online form with the requisite details
  3. Attach the relevant documentation
  4. The loan provider will commence the assessment process for the application
  5. Once approved, the loan amount will get disbursed in your account within 24-48 hours.

In Summation

Professional loans are customized and tailor made to the specific professional requirements of different categories of salaried or self-employed people. They are easy to procure, require minimal documentation, have competitive rates and can be repaid in convenient and flexible payment plans. Piramal Finance is renowned for its quick and smooth application process, offering maximum borrowing limit based on eligibility, and speedy disbursal to get you started on your professional journey.