Checklist for Salaried Chartered Accountants While Taking Personal Loan

While Chartered Accountants have the job of securing everyone else’s finances, it is also a fact that at times they need financing of their own to take care of their personal needs and applying for  personal loan for chartered accountants is the right way to go.

They can take care of all their needs through this form of loan and all they have to do is adhere to a simple checklist to avoid rejection of their personal loan applications. They are as follows:

• Payback Plan: Personal loans are unsecured loans, which means, one does not have to provide any form of collateral against it. However, personal loan interests are also higher than other form of loans like home loans. Hence, depending on one’s income, a CA, especially a newly employed CA, should chalk out a meticulous plan regarding whether they would be able to meet the interest rates and pay back the loan on time. If the loan provider finds that the income of the CA is not enough to cover the loan payback, then the application would most likely be rejected.
• Right loan amount: A CA should be sure that he or she is not over- borrowing or under- borrowing. Over-borrowing would mean one would have to end up paying interest for money they do not even need, and under- borrowing would not be able to cover the needs. Calculating the right amount is very important and based on that, one could opt for loans which have benefits like flexible tenor, nominal rate of interest or even a large loan amount. NBFCs like Bajaj Finserv have personal loan options for up to 35 lakhs.
• Meet Eligibility: One should thoroughly go through the CA loan eligibility criteria to avoid rejection. In fact, if a CA has plans of applying for personal loan in future, they should try setting things in motion which will help them to meet the eligibility criteria of the lender in a few years time. For example, a CA must have a Certificate of Practice of a minimum of 4 years. There must also be a property in his name and all the documents have to be in place like educational certificates, pay slips, KYC documents, property ownership proof, bank details of the last six months and IT returns of the last three consecutive years. Start making a file of these documents to be presented at the time of verification.
• Right loan option: Choosing the right kind of loan is very important to meet all the needs but what if one is not sure whether the need would increase later? For example, a CA could be applying for a personal loan for the expansion of his office or to go on foreign trip with family. However, the cost of construction might go up and the bookings and Visa could end up costing more than anticipated. In such cases, one could opt for flexi- loan schemes which would allow the CA to withdraw money from the flexi loan limit in parts and then pay interest on the portion that has been withdrawn. One could also opt for interest- only EMIs and pay the principal at the end of the tenor or opt to pay back the loan in parts. In case one plans for contingencies, such loans are a good idea.
• Pre- approved offers: It would be a great idea to make use of pre- approved loan offers as they eliminate the need to go through the process of application from the beginning. If one is already a customer with a lender, they could use pre- approved offers. It would definitely speed up the application as well as the disbursal procedure and NBFCs Bajaj Finserv often approves such applications within hours. Hence, opting for personal loan for chartered accounts is one of the best ways to take care of personal needs of CAs in a hassle free manner.