Setting up a CA practice requires a substantial amount of investment in addition to accountancy and networking skills. Freshly graduated CAs often find it difficult to establish a practice of their own, primarily due to a shortage of funds. Established chartered accountants, on the other hand, may need cash to finance their firm or expand their existing practice and open up a new office.
The bottom line is that an external source of funding is of paramount importance for CAs regardless of the stage of their careers. A business loan for chartered accountants can help them take their practice to the next level or sail through times of crises.
However, obtaining a business loan requires careful planning and attention to details. Here’s how you can get one in 5 easy tips and finance your CA firm easily.
Present a detailed business plan
There can be many reasons to take a CA loan. You may need it to buy new equipment, lease new office space, hire staff or do a multitude of other things. Financial institutions need you to be precise about your requirements and how you plan to spend the money.
A detailed business plan helps in getting a Business Loan for Chartered Accountants from NBFCs such as Bajaj Finserv approved quickly. It should include key details about your firm and its future roadmap. The proposal should also include your plan for the repayment.
Have a clear idea about various features of the loan
You should have in-depth knowledge about the different features of a business loan for chartered accountants. Here are a few things to start with.
- You can get a maximum loan amount of Rs. 35 Lakh.
- You can choose a repayment tenor of 12 to 60 months based on your ability to repay.
- It is an unsecured loan. Hence, there’s no need to pledge any collateral.
- The CA loan interest rate is usually between 14% and 17%. There is also a 2% processing fee involved.
In addition to these facilities, Bajaj Finserv, a prominent lender in India, brings pre-approved offers on personal loans, home loans, business loans, and multiple other financial products. These offers simplify the process to seek funds and help you save on time. All you should do is provide with a few essential details online to check your pre-approved offers.
Know the eligibility criteria
Every lending institution has set eligibility criteria that a borrower needs to meet to be eligible for a business loan. Usually, lenders ask for the following.
- As a borrower, you must possess a Certificate of Practice for a minimum of 4 years.
- You or your parents must own a property (either office or house) in an area where that lender operates.
Keep all the necessary documents ready
Lenders verify your eligibility against a set of relevant documents. For that purpose, you need to deposit the following documents.
- KYC documents
- Proof of ownership of a property
- Certificate of practice
- Account statements (previous 3 months)
- Passport sized photograph
You can easily apply for a CA loan if these documents are ready and in order.
Understand the loan approval process
You can apply for chartered accountant loan both online and offline. The online process is quick, easy and hassle-free. Just go to the relevant website, and fill in a form with your personal details. After that, you will receive a call from a representative of that lending institution. Submit your documents once you are sure about the loan and its offers. If everything is as per the requirements, your loan will get approval within 1 to 2 working days.
So, approach a reputed lender and avail a business loan for CA easily with these 5 tips and use it to fuel your growth story.