How to use your CA degree to take a Professional Loan?

Students often pursue degrees with the primary goal of securing a job, but the significance of these degrees extends beyond mere employment. In this blog post, I aim to clarify the various ways in which your educational degree, specifically in fields like Chartered Accountancy (CA), can be leveraged for financial growth.

Chartered Accountants (CAs) play a pivotal role in shaping the economic landscape through their expertise in planning financial strategies. As they meticulously chart the course of financial success, it is essential to consider their own financial needs. Recognizing this, banks and NBFCs offer commendable options to support CAs in their professional journey. Congratulations to all CAs! Don't pause; spread your wings and progress with a professional loan.

One notable avenue is the potential to access financial support from banks through professional loans. CA professionals, among others like doctors and architects, can benefit from these tailored loans. Importantly, these loans are unsecured, meaning CAs are not required to provide collateral.

The key question arises: How does the CA degree play a vital role in securing a professional loan? Having a CA degree enables professionals to obtain these loans at lower interest rates. It's crucial to note that interest rates may vary among different banks and financial institutions, including NBFCs (Non-Banking Financial Companies). This financial leverage allows CAs to pursue their career growth without the burden of collateral, making the professional loan an attractive option for their financial aspirations.

Professional Loan for Chartered Accountants Eligibility:

When considering the professional loan application process for Chartered Accountants (CAs), it's crucial to understand the eligibility criteria. Ensure you meet the following requirements:

1. Nationality: You must be an Indian citizen.

2. Age Range: Age should be between 21 and 65 years.

3. Professional Qualification:

- Hold a professional qualification as a Chartered Accountant.

- Membership in the Indian Chartered Accountant Institute (ICAI).

4. Stable Income: Maintain a stable income derived from your Chartered Accountant profession.

5. Credit Score: Maintain a minimum CIBIL score of above 700.

Once you confirm eligibility, proceed to the documentation stage.

Documents Required for CA Loan:

There are a few basic documents required to apply for a professional Loan for CA. Here is the list of documents required for it:

1. Application Form: Fill out the application form accurately, providing your personal details and specifying the purpose of the professional loan for CA.

2. ID Proof: Submit a valid ID proof such as an Aadhar card, PAN card, voter ID, or driving license, ensuring that your address is mentioned.

3. Address Proof: Provide valid address proof with your current residential details such as utility bills or rent agreements.

4. Income Proof: For salaried CAs, furnish salary slips for the last three months. If self-employed, present income details, including Form 16 for salary CAs. Bank statements for the last six months are essential to validate your income.

5. Qualification Proof: Showcase your Chartered Accountant qualification with relevant degree certificates.

These documents collectively paint a comprehensive picture of your eligibility and financial stability, facilitating a smoother professional loan application process.

How to Apply for a CA Loan?

Step-by-step process to apply for a CA Loan:

1. Visit the official site of My Mudra.

2. Click on the APPLY NOW button on the page of professional loan for CA.

3. Fill out the application form by filling up the basic personal details.

4. Now click on the PROCEED button.

5. Complete the process by filling up the KYC details.

6. Now your appointment will be scheduled for the verification of documents.

After this process, the customer executive will call you to guide you further for the CA loan.

Key Features of Professional Loan for Chartered Accountants

The professional loan for Chartered Accountants (CAs) comes with distinctive features, offering them special privileges. Let's delve into the key aspects:

1. Overdraft Facility: CAs enjoy the benefit of an overdraft facility, providing them with exceptional financial flexibility.

2. Transparent Fee Structure: There are no hidden charges beyond the predetermined loan application fees and fixed interest rates, ensuring transparency throughout the loan tenure.

3. Loan Amount: Before applying, it's advisable to compare loan amounts offered by different banks. This can range from 40 to 50 lakhs, depending on the bank's terms and conditions.

4. Flexible Repayment Tenure: One of the most attractive features is the flexibility in repayment tenure, spanning up to 48 months. This allows CAs to tailor the repayment schedule to their financial circumstances.

5. Interest Rate: The interest rate on professional loans for CA ranges from 11%- 14%.

6. Processing Time: In urgency, this loan for CAs offers generally quick approval and is processed in 3-4 days.

Conclusion:

By understanding these key features, CAs can make informed decisions about their professional loan, ensuring financial support tailored to their unique needs.

At last, ensure the safety of your valuable degrees; they hold significant importance, just like a chartered accountant's expertise. Similar to doctors and architects, many professionals secure their careers with professional loans. Safeguard your job with the support of a professional loan.

Also read: Features of Professional Loan for Chartered Accountants