Professional Loan for CAs, Physicians: Here’s Everything You Need to Know
Professional loans are intended for professionals in specific fields such as doctors, lawyers and accountants. These are unsecured loans made to professionals who provide professional services for a fee. Such loans are useful for these professionals to expand, upgrade, or use for other professional needs of finance that they may have.
One of the main advantages of a professional loan is that it does not require collateral from the lender as security for a certain amount. However, if the amount exceeds a limit set by the lender, you may be required to post collateral.
The interest rate on professional loans is usually between 14 and 20 percent, depending on the individual lenders and the eligibility of the professional. Compared to personal loans, the professional loan has simple eligibility criteria and quick approval of the loan application. Such loans are also offered to certain professionals at preferential rates. Below are some of the benefits of a professional loan.
Business loans are often offered at attractive interest rates compared to personal loans. Therefore, you can take out a larger loan amount with attractive interest rates. This is a pocket-friendly option for borrowers compared to other unsecured loans. If you have a credit rating of 750 or more, you can easily secure the loan with attractive interest rates.
Adhil Shetty, CEO of Bankbazaar.com explains: “Professional loans are unsecured loans and provide easy access to much-needed finance. Before applying for such loans, you must compare interest rates from different lenders, review loan terms, factor in additional costs, and calculate EMIs and interest components before signing the dotted lines of the loan agreement.”
A professional loan can start from a few lakhs up to a million euros and more. This depends on your professional profile and suitability. You can use the professional loan to meet your business needs.
Minimal documentation and simple approvals
If you are a professional looking forward to growing your business but don’t have much time, then you can opt for a professional loan. It’s easy to apply for a professional loan with minimal documentation. Instant payout helps you arrange funds when you need them most.
Online application process
You do not need to go to a bank branch to apply for a professional loan. Today, almost all financial institutions offer you the opportunity to apply for a professional loan online. If you have an existing relationship with the bank, you can quickly apply for and disburse the loan without too many formalities.
“A job loan can be applied for online without physically going to the bank branch. You can simply fill out an online form and the loan will be disbursed if you meet the lender’s eligibility criteria,” adds Shetty.
Because a personal loan is an unsecured debt, it is like a personal loan. You do not have to pledge any assets to secure the loan. All you have to do is meet the personal credit criteria and submit your documents for review to have the loan approved.
Professional loans are preferred due to flexible loan terms. You can budget and choose the term according to your comfort and ability to repay. The repayment term can be between 12 and 84 months.
It is best to remember that lenders may have different terms and conditions when applying for a professional loan. They may have a minimum salary requirement, work experience, age, credit history, etc. before paying off the loan.