How to Qualify for a CA Loan in India?

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A loan for chartered accountants is a reliable option for a CA professional to finance personal and business requirements. It can help the professiU+006fnal to raise funds within a short time. If you fulfil the CA loan eligibility criteria, you can benefit from quick disbursal of the funds.

The four most important factors that facilitate the approval of the loan are as follows –

  1. Healthy credit score
  2. Eligibility criteria
  3. Documentation
  4. Your current income and liabilities

Like any other loan, the most critical aspect of a loan for chartered accountants is meeting the eligibility criteria well. Such professional loans come with customised eligibility pointers in tune with that of a chartered accountant in active practice.

  • The applicant must possess a Certificate of Practice, and it should be active for 4 years from the issue of the CoP till the date on which the loan is applied.
  • The applicant must be the owner of a house or an office, or his/her parents must own a home, and in both cases, the location of the property should be where the lender operates from.

There is specific paperwork that is very important to be furnished to avail a chartered accountants loan, viz. –

  1. CoP
  2. Proof of Ownership of at least one property
  3. KYC documents

Apart from the above mentioned requisites, it is also essential to have your financial documents handy to avail a chartered accountants’ loan. The lender can also ask for other relevant documents during loan processing, and so it is wise to keep the complete paperwork ready as you never know when you end up needing one.

Now, let’s have a general overview of the other aspects to strengthen your eligibility.

  • Need to be a self-employed or a consultant CA: In case you are an independent professional, you need to have your own firm or at least be a partner of such an organisation. If you are a consultant, then you might need to submit a salary slip or a letter of employment as proof.
  • Need to be a qualified chartered accountant: You need to be a qualified CA with a valid degree. You must validate your credentials by submitting the certificates you have received on completion of your degree. It must include your mark sheet and certification of graduation.
  • Need to have necessary work experience: It is not just enough to be skilled, but at the same time you must have some experience in the chartered accountancy field as well. This assures the lender about the fact that the loan being granted to a capable CA and hence the lending is more or less secured. A business vintage for 3 years along with the CoP is the essential requisites to prove this point.
  • Need to submit a duly filled form: Last but not the least; you need to submit a form duly filled with accurate and authentic details. Make sure that your form is devoid of errors.

Avoid making these common mistakes when taking a CA loan. Increase your chances of a quick approval and disbursal.

Meet the CA Loan eligibility criteria and avail tailor-made loans for your business, for personal usage or secured advances such as a loan against property, home loans, meant specifically for in-practice chartered accountants. Also, know the basic fees and charges on your loan for chartered accountants before applying.

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