As on 1st April 2018, there were some 2.81 Lakh qualified CAs in India. Out of that, the number of practising chartered accountants was around 1.32 Lakh. The other 1.5 Lakh are in jobs. These CAs and many newly qualified ones are propelling the growth of the Indian economy through their invaluable services.
The community of chartered accountants has also helped the country flourish as a whole. They have done this through a long list of services like financial accounting, auditing, taxation, valuation of shares, etc. While they may not always need additional funding being in a job, financial support becomes essential for self-employed professionals to run their CA firm.
Financial institutions lay down certain CA loan eligibility criteria that borrowers must meet to apply for the fund. The purposes can be wide-ranging and encompass for both personal and professional needs.
Lending institutions offer customised Professional Loan that CAs can use to meet diverse expenses. Moreover, features like pre-approved offers make availing these credits simplified and less time-consuming. You can get these pre-approved offers on different financial products like business loans, home loans, personal loans and more.
Assess if you’re eligible for a CA loan based on the following criteria.
Eligibility criteria to apply for a CA loan
- 4 years of practice
A CA looking to apply for this professional loan must be practising for a minimum of four years. The practice should be in continuation until the time he/she applies for it.
- CoP certification
Applicants should also hold a certificate of this continuation which is known as Certificate of Practice. They need to provide this document to the lender when they apply for a CA loan.
- Ownership of house or office
A chartered accountant also needs to own a residential property or an office at a place where the concerned financial institution operates.
- Parents owning a house
If an applicant does not own a house or office at such a place, lenders look for residential property of his/her parents at those locations.
Hence, before applying for the credit, you must make sure to meet every CA loan eligibility criterion mentioned by your chosen lender.
Furthermore, carry all those documents required to process the loan. NBFCs make the process of loan application and approval easy through minimal documentation. Similar other features of a Loan for Chartered Accountants like flexible repayment tenor, affordable interest rates, etc. only make the advance easy to use and repay.
What are the documents needed?
To make sure your loan application goes through a smooth approval process, arrange every document beforehand. CA loans can be both secured and unsecured. Accordingly, the lending institution’s requirements vary.
Bajaj Finserv comes with a multi-purpose suite of Loans for CAs which includes both the types.
For Unsecured Loan
You need to furnish three essential documents when applying for an unsecured loan.
- KYC documents – It includes the crucial documents like Aadhaar card, Voter ID card, PAN card, driving license, and any other document if required by the lender.
- Certificate of practice – As mentioned earlier, you also need to have a CoP that certifies 4 years of practice till the date you applied on
- Property certificate – You also need to possess a certificate of property ownership of your house or office. The same applies in the case of a parental house.
For Secured Loan
To get a secured loan for chartered accountants, you must possess the three documents mentioned above along with the following:
- IT returns for the past two years
- Financial statements of the last two years, like P&L account statement and Balance Sheet
- Documents of the property you will mortgage, be it a residential or commercial
Meet the CA loan eligibility criteria and documentation requirements to get unsecured loans up to Rs. 35 Lakh and secured loans up to a maximum of Rs. 2 Crore. So, make sure you meet all the necessities to avail India’s fastest CA loan approval.