A Quick Guide On How To Avail A CA Loan In India

A Quick Guide On How To Avail A CA Loan In India

Chartered Accountants play a crucial role in the country's financial development. Their contribution to formulating fiscal policies is also commendable

They have a broad knowledge of financial reporting, management accounting, costing, law, auditing, taxation, etc., which is crucial in formulating legislation. However, setting up an independent practice is an expensive assignment. A loan can be helpful for buying/ leasing premises to working capital. Here are some facts about chartered accountants before learning about loan options for them.

As the Indian economy is booming, demand for CAs is also rising. There is still a broad gap between the demand and supply that needs to be filled. Rapidly changing financial laws and regulations also play a paramount role in the increasing demand.

A loan for CA can help them in several ways:

• Helps Establish/ Renovate Office Space
Setting up an office requires a considerable investment. A CA needs to have an organized office set-up to work efficiently. If you need more cash for this purpose, a loan for chartered accountants can solve your problem. It aids in acquiring, renovating, or leasing an office space.

• Helps Maintain Working Capital Reserve
Any office needs steady working capital to execute the business without any interruptions. Therefore, it is essential to provide for staff salary, software subscriptions, daily expenses, maintenance, etc. A loan for chartered accounts in India comes in handy for getting finance for maintaining a sufficient working capital reserve.

• Enables to Meet Personal Contingencies/ Requirements
Anyone can face the sudden need for funds due to personal contingencies/ requirements. Usually, any bank easily lends funds to CA for unexpected expenses, marriage, child's education, medical expenses, etc., without any collateral.

• Helps Scaling Up the Operations
Scaling up existing operations demands more space, new skilled staff, additional software, etc., which requires capital. In addition, a CA might need funds until their new payment cycle starts. Several loan options for CA with flexible terms enable you to widen the horizons of your practice.

CA Loan Meaning

Multiple banks and financial institutions offer loans to professionals like doctors, CA, ICWA, etc. These loan options are different from other regular loans. CA loan is a custom-designed financial product to meet such professionals' unique financial needs. They usually do not require any guarantor or collateral.

How to Get CA Loan in India

A chartered accountant can approach nearby banks or financial institutions to borrow money for your practice. L&T Finance provides CA loans with easy terms, faster processing, and flexible repayment tenure suitable to your requirements. Our loan with end-to-end digital processing with attractive rates enables these professionals to jump on the next curve of the business.

Eligibility Criteria

To take advantage of a CA loan, you…

• must be of 24-70 years of age
• must have a CA degree provided by the Institute of Chartered Accountants of India (ICAI)
• must be practicing in the field for at least three years while making an application
• need at least six months of previous bureau history

Documents Required

KYC Documents:

• Firm/Company: PAN Card, Address Proof, and Other Applicable Registrations
• Proprietor/Partner/Director: PAN Card, Aadhaar Card, Electricity Bill/Rent Agreement/Index II

Income Documents:

• Latest two years' Financials: IT Returns, Profit and Loss accounts & Balance Sheet

Bank Account Statement:

• Operative Bank Account Statement of the last six months (wherever applicable)

Qualification Documents:

• Degree Certificate as provided by ICAI
• Certificate of Practice (COP)

Fees & Charges

Interest rate

You can get the CA loan interest rate of only 12.5% to 15.5% based on your credit score.

Pre-Payment Charges

On pre-payment, a 5% fee is applicable on the outstanding principal plus applicable taxes.

Processing Fees

Only a 1.5% one-time fee applies to the loan amount.

Bounce Charges

₹500 bouncing charges are levied per bounce.

We at L&T Finance recognize the Chartered Accountants' contribution to nation-building. Contact us now to retain more about a loan for chartered accountants. We will help you with the details of these loans and guide you through the entire process.