Eligibility for a CA loan?

CA loans are the loans that are issued to CAs for professional and personal requirements. These loans are offered to Chartered Accountants on the basis of their existing practice. They need to give a CoP (certificate of Practice) of at least four years before the date of loan application.

CA loans are issued by different banks and Non-Banking Financial Institutions (NBFCs) in India. Today, there are many options available in the market for CA loans. Different lenders have their own set of benefits, eligibility criteria and fees/charges. It becomes very confusing to choose among the different lenders.

What are the different questions that need to be kept in mind before finalizing which lender to take the loan from or what type of loan to apply for?

Which type of loan suits you?

CA’S can avail loan by pledging some assets. If you have some assets at your disposal which can be submitted as collateral, you can avail the secured loan option like a home loan or loan against property.

Secured Loan

Unsecured Loan

Lower rate of interest

Higher rate of interest

Easy to obtain

Difficult to obtain

Longer Repayment period

Shorter repayment period

After deciding upon the type of loan which suits you, you can proceed to furnish further details.

What are the requirements for which you are taking the loan?

Business Loan

In order to fulfil the business needs such as expansion of their services to new geographies, maintenance of office expenses, devising online portal or outsourcing some processes, or fulfilling the cost of integrating IT into their services.

Personal Loan

This loan can be availed for any purpose. Be it some emergency needs, like medical needs, or some other casual reasons like home renovation. It may be used for adding colours to family celebrations like weddings, etc. It can be utilized for tour and travel abroad also.

Home Loan

Use the loan to finance the dream of owning your own house.

Loan Against Property

Loan against property can be availed against some property as collateral and can be used for any purpose just like the personal loan.

What are the charges associated with the processing, disbursal and payment of loans?

The different charges that the lenders impose are:

  • Processing fees- This is the charge that a lender levies in order to cover the expenses of operation associated with the processing of the loan. This is a one time charge and is nonrefundable.
  • Interest- This is the cost which we pay to the lender for availing the loan amount. It can be floating as in the case of home loans or maybe fixed as with many other loans. The rate of interest may vary from one lender to the other.
  • Prepayment charges- If in case you intend to close the loan early by paying the amount left after a certain tenure, the lender does impose charges as it incurs the loss of recurring income to the lender. So, you need to confirm on these charges before opting for a certain lender.
  • EMI bounce charges- These charges are levied if in the case due to some unavoidable reason, you are not able to deposit the EMI on time.
  • Loan statement charges- These are the administrative charges in case you require a duplicate loan statement.
  • This site gives a comprehensive detail for the processing fees imposed by different lenders.

What is the EMI amount?

Equated Monthly Installments(EMI) is a fixed payment amount made by a borrower to lender at a specified date each calendar month so that over a specified period of time the loan is paid in full. The EMI amount is calculated on the basis of loan amount or principal, rate of interest and number of monthly instalments. EMI calculator is available online with different lenders. Lower EMI signifies affordability of loan. The value of EMI also depends upon the tenure for which the loan has been taken.

What benefits are different lenders providing along with the loans they offer?

  • Speedy Disbursal
  • Customised insurance Scheme
  • Online access to loan account
  • Credit protect Insurance plan which protects the borrower from credit passing on to the family members in case of the unfortunate demise of the borrower.
  • The Flexi loan also allows borrowers the option to prepay the loan when they have surplus funds and allows them to re-avail the amount already prepaid

Author Bio

Qualification: CA in Practice
Company: https://caportal.saginfotech.com/
Location: JAIPUR, Rajasthan, IN
Member Since: 13 May 2019 | Total Posts: 18
I am Akhil Jain, SEO and content writer having more than 5+ Years of Experience in outreach content in finance and taxation services. I do publish the finance and taxes content along with an everyday guide to professional business. View Full Profile

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One Comment

  1. ANIL KUMAR says:

    Are you in debt? Do you need a private loan? Do you need a business loan? Look no further come to us as we do give out loans at a low-interest rate of 2%. I give secured and unsecured loans. For more information, contact us via e-mail [email protected]

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September 2021