Starting your own chartered accountancy practice holds great possibilities for success. Considering the present scenario, where more and more chartered accountants are entering into practice, you might as well consider establishing your own firm.
The task of setting up your own practice or consultancy is certainly not going to be an easy one. The first and foremost obstacle you might face in this respect is a financial one.
Starting your own practice would require a substantial amount of capital, which you might lack as of now. In such circumstances, a loan for chartered accountant helps cope up with monetary hardships while establishing a CA firm.
For professionals who own a CA firm, maintaining proper cash flow and workforce could be quite challenging as well.
Cash flow in an organization consists of operating, investing, and financing activities. Along with outflow, both need to be balanced in such a way that the firm never runs out of funds. In cases where cash outflow goes on to surpass cash inflow, professionals can avail a loan for chartered accountants and suffice the dearth.
Chartered accountants can opt for business loans or loans against property, as per their fund requirements.
Most lenders incorporate customized features on loan policies for accountants professionals. Such loans are collateral-free advances, which come with simple eligibility criteria and an easy documentation process.
Eligibility criteria for a CA loan
The points listed under the eligibility criteria and documents needed to apply for a CA loan is likely to vary from one lender to another. Here are some points which are generally present in the list –
- The applicant must have a CoP (Certificate of Practice) that is valid for at least 4 years.
- The applicant or his/her parents must own either a house or an office where the concerned financial institution functions.
Your eligibility to avail of a business loan for a chartered accountant will be determined and verified through the documents you submit.
Features and benefits of a loan for CA
You must look for the best features and benefits in a loan policy before you proceed with the application procedure. The list of best features in a loan for chartered accountants include –
- Sufficient funds
For business and personals loans for CA, the maximum sum could go up to Rs.35 lakh. While in the case of secured credits, the gross sum could range up to Rs.2 crore.
- Speedy disbursal
If you are opting for a loan to finance cash flow requirements, the need for funds is likely to be urgent. You cannot afford to wait for months for the loan approval. As such, you can select a lender that disburses loans within a short span. You can have access to the funds within 24 hours of application.
- Flexible repayment terms
The repayment tenor permitted with a loan for chartered accountant usually ranges from 12 to 60 months.
- Pre-approved offers
NBFCs like Bajaj Finserv bring pre-approved offers, which ease the task of availing financing and facilitate fast and hassle-free loan disbursals.
You need to first go through in details regarding the features and benefits a lender is providing with the loan. If you have any queries, financial institutions also come ahead to clarify them through offline as well as online platforms.
Loan for chartered accountants helps a professional maintain the essentials of a CA firm to run it successfully. From hiring new staff, expanding services, upgrading software, to maintaining funds in an organization, such loans can suffice all financial exigencies.