A comprehensive Chartered Accountant loan is a customised financial product, designed to help chartered accountants take head on both personal and professionals objectives – such as funding a medical emergency in the family, consolidating existing debts into a single payment, financing children’s overseas education expenses, expanding practice and integrating sophisticated technology, ramping up marketing efforts, meeting working capital needs and other high-value expenses.
Listed below are 7 surefire tips to secure a Loan for Chartered Accountants easily:
- Shop around for the best loan terms
It is imperative that CAs devote considerable time in shopping around before selecting a particular lender. This is because settling for the first lender that approaches with a product will prevent them from considering other possible lucrative alternatives. However, being on the lookout can fetch loan terms and conditions, along with favourable rates of interest that will be the best fit, in keeping with their unique objectives and financial considerations.
For instance, Bajaj Finserv Loan for Chartered Accountants offers a suite of four high-value loans — subject to competitive CA loan interest rates and flexible repayment tenors – tailor-made for CA professionals in order to help them fund personal as well as professional goals.
- Check and work on the credit score
While processing a CA loan application, lenders begin with initiating a hard enquiry into the borrower’s credit worthiness. Therefore, verifying the credit score and working on it, if need be, is the key to getting the application approved. Lenders want to know a borrower’s past experience with credit and whether the debt was paid in full within the repayment tenor. A low credit score raises a red flag, making lenders and NBFCs wary of the borrower’s financial viability. This automatically brings down the odds of approval. A credit score of 750 and beyond is considered good according to the current standards and is likely to land the expected loan amount.
- Check the standards for eligibility
Chartered accountants should ideally verify with the lender’s eligibility criteria before pressing ahead with the application. This will give them a realistic idea about where they stand and estimate the chances of qualifying for the loan. While CA loan eligibility criteria will vary across lenders, a stable monthly disposable income, among other factors, is a relative constant. This indicates the borrower’s financial footing and consequently, chances of recovery of the loan amount.
- Have all documents ready
No matter what the credit score is, even a slight error in furnishing the required documents can ruin the loan application and result in rejection. Professionals should keep all the paperwork ready for timely submission to the lender.
Bajaj Finserv offers convenient doorstep collection of documents, coupled with money-in-bank guarantee within 24 hours of verification.
- Know the ratio of loan to income
Before giving a go-ahead to the application, lenders usually probe into the borrower’s income that is left after having met all existing loan obligations. Here, chartered accountants should make sure the total combine of all EMI payouts doesn’t go beyond 25-30% of their monthly net income (this generally doesn’t include home loan EMIs).
So, if the borrower’s income is Rs.50,000 a month, the combined EMIs shouldn’t be more than Rs.15,000.
- Don’t approach multiple lenders
Approaching a slew of lenders to increase the odds of having the application approved, can in fact, be counterproductive. This is because each application reflects on the credit report, skewing the lenders to believe that the borrower could be perpetually surviving on credit. This can further harm the scope of approval.
- Read the fine print
Borrowers should go into the details of the agreement before finally signing up for the loan. This averts any potential misunderstanding and confusion, thereby making sure all terms and conditions have remained exactly similar to those agreed upon during the initial stages.
You can also share a few basic details about yourself and get exclusive pre-approved offers on home, personal and business loans, and other financial products from Bajaj Finserv.