Chartered Accountant Loan Eligibility are small loans specially designed for chartered accountants looking for funds that can be used for various purposes.
A chartered accountant loan is a professional loan, but the terms and conditions of the loan for CAs make it different from personal loans.
Chartered accountant loans can be beneficial in many ways, such as; it does not require collateral for loan approval.
The loan process is easy, and there are instant loan approvals for Chartered accountant loans.
The amount offered in CA loans is much higher than the personal loans, i.e. INR 30 Lakh.
There are Non-Banking Financial Companies (NBFCs) that offer the options like adjustable EMI and adjustable tenor.
Chartered Accountant Loan Eligibility
According to the lender, these benefits can seem too good to be true, but to avail of a chartered accountant loan, you need to be eligible for the loan.
4 Factors affect chartered accountant loan eligibility
The parameters set by the lender determines an applicant’s eligibility. To get your chartered accountant loan approved and sanctioned, you need to qualify through the eligibility criteria for a CA loan as set by the lender.
#1. Credit score
A credit score or a CIBIL score plays an important role in loan approval. Due to the lack of security interim, the lender refers to the applicant’s credit score.
A credit score is the points given to the applicant based on his previous loan repayments. The ideal credit score for loan approval is 750 points.
If you have a lower credit score, you can apply for a chartered accountant loan through an NBFC, as they provide a loan to people with low credit scores.
#2. Income
Income plays a vital role in a CA loan; as the loan has to be paid in equated monthly instalments (EMIs), your income must match the lender’s requirements.
For your EMIs, your monthly income is analysed with necessary monthly expense deductions, and then the remaining amount is considered as EMI for the loan repayment.
This analysis is called the debt to income ratio analysis.
#3. Employment History
To avoid default in EMI payments, the lenders check the applicant’s employment history to make sure that who will repay the loan.
In simple words, the applicant’s employment history is another guarantee or proof of loan repayment.
To qualify for a chartered accountant loan, the applicant must have at least 3 years of working experience in any company.
#4. Banking History
Many lenders ask for the banking history of the applicant when approving the loan.
When submitting the application form, the applicant is asked to provide a bank account statement of at least 6 months.
The reason behind this is the lenders check your banking history for any returned cheques or failed transactions which is a key sign of defaulters.
You must keep the following things in check before applying for a CA loan. You can also take the help of the CA loan eligibility calculator.
Sam Decosta is an experienced financial advisor and writer who is well known for his ability to market trends and his financial knowledge.
He has worked extensively in the finance sector and also written numerous blogs on finance like Business Loan, CA Loan, Engineer Loan etc.
How they affect the customer in the present market scenario. He has done MBA in finance. Anuj has also amassed a great name for himself as a financial blogger.
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