The Institute of Chartered Accountants in India witnessed 37% growth in job offers for newly qualified CAs when compared to last year. Such stats indicate an increasing demand for such professionals across the country. A majority of professionals in this field tend to start their careers at reputed companies but migrate to their businesses after a few years.
Nevertheless, venturing into entrepreneurship alongside keeping it afloat and growing requires financing of high value. The financial market has thus made it convenient for chartered accountants to avail funds easily against simple criteria through customized loan options.
Whether you require funds for your chartered accountancy firm or any other personal need, acquiring a CA loan can help significantly. These credits are specially tailored to fit the various requirements of these professionals, thereby suiting them aptly.
What are the different loans available to CAs?
When looking for a specialized loan for chartered accountants, one can choose from the following options readily available in the market.
- Personal loans for CAs.
- Business loans for CAs.
- Home loans for CAs.
- Loans against property for CAs.
With personal and business loans, chartered accountants can avail hassle-free, unsecured funding of up to Rs.25 lakh. On the other hand, with an immovable property as a mortgage, eligible individuals of this profession can avail financing of up to Rs.2 crore.
Various ways to utilize a CA loan
Now that you understand the different loan options available to CA professionals, you should consider how to use these loan proceeds for the best financing output.
- Fulfilling short-term objectives using a CA personal loan
Personal CA loans offer suitable features and benefits to fulfill one’s short-term funding goals. For instance, a personal loan for CAs can help them acquire sufficient funds for car purchase. Similarly, it can be the best choice for individuals planning an expensive family vacation. A personal loan for chartered accountants can also aid such professionals in acquiring sufficient capital to finance a grand wedding.
2. Funding business expansion and growth
Chartered accountants often carry on entrepreneurship, with several of these professionals choosing to practice through their own firms. Doing so requires a substantial amount of capital, which is fortunately available in the form of business loans. With a principal of up to Rs.25 lakh, these entrepreneurs can sufficiently fund their running businesses’ growth.
Moreover, they can also use a business loan for CAs to expand the existing organizations operations to a new location. Doing so can also involve hiring more staff or shifting to a bigger office space.
3. Enjoy affordable rates on home loans
Lenders are ready to provide housing loans to these professionals at competitive interest rates. It is because of their increased earning potential and high creditworthiness. A CA loan available as housing finance can help these individuals acquire their dream property without needing to worry about insufficient funds. They can further negotiate with the lender for more affordable rates than initially offered by citing all of their income sources.
4. Renovating an owned property
If your home is in dire need of renovations but you lack the necessary financial backing to afford it, a loan for chartered accountants can come in handy. With a personal loan or a loan against property, these individuals can acquire sufficient corpus to undertake such expensive projects.
5. Funding your child’s education
Chartered accountants can use proceeds from a personal loan or a loan against property to finance the academic expenses for their children’s higher education. The significant quantum from loans against property can fund even the costliest courses in reputed institutions abroad. A personal loan principal, on the other hand, can help afford degrees from prestigious institutes in India.
The above-mentioned tips can help one make the most of available CA loans. However, before planning how to use the loan proceeds, a borrower must consider his/her eligibility. Applicants who meet or exceed these criteria can negotiate for favorable terms on their loans.
Moreover, reputed financial institutions like Bajaj Finserv also provide pre-approved offers to ensure a fast and streamlined application process. These offers are available on a range of financial products, including personal loans, credit cards, business loans, and more. You can check your pre-approved offer by submitting a few essential pieces of information.
With the availability of such funding options, chartered accountants can acquire emergency finance at minimal hassle. Make sure to keep a repayment plan in place to ensure that you pay off the liabilities in time for efficient management of finances.