Chartered Accountants who have been toiling at a corporate firm for years and have switched to a venture or practise of their own often face a need for additional funds in this stage. This could be to effectuate better growth, to expand the existing practise, to set up a new branch, to refurbish the existing space or to expand the workforce. All such prospects entail significant expenditure for which sometimes the savings may not suffice and a loan will have to be availed. Qualified CAs have the option of choosing a Chartered Accountant Loan in this regard.
These loans, as is quite clear from the name are for CA professionals and could either be secured or unsecured. The secured loans are backed by some mortgage asset and have a lower rate of interest because of the same reason. Unsecured loans are not collateralized by any asset and hence, lending institutions often charge a higher rate of interest for such loans.
Banks and Non-Banking Financial Companies (NBFCs) provide secured and unsecured CA loans to eligible applicants. Some of them provide loans up to INR 2 crores with nominal interest rates, simple eligibility criteria and documentation formalities.
Given below are the key steps to utilizing an available asset for a Chartered Accountant loan:
The resource given below talks about the best ways to utilize the asset in greater detail:
Tips for Using Collateral to Secure a Chartered Accountant Loan
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.