What is a Loan for CA?
Most lenders offer unsecured loans to self-employed professionals to meet their business requirements. Loan for CA is one such collateral-free loan offered to fulfill the business related financial obligations of CA professionals. Consumers can avail the loan proceeds for office expansion/construction/renovation, working capital requirements, salary payments, etc.
Lenders usually offer a loan amount of up to Rs 1 crore for tenure of up to 8 years depending on the credit profile of the applicant. Some lenders also offer dropline overdraft facility to their CA borrowers in which the limit is set on a separate current account and interest is charged only on the used amount. Lenders also offer balance transfer facility to CAs wherein they can transfer their existing loans to other lenders offering low interest rates and better offers.
Some lenders like IDFC First Bank offer instant loans based on the professional qualifications of the applicants. In case the lender does not offer Loans for CA, CA professionals may apply for unsecured loans for self-employed professionals to meet their business related financial requirements.
Interest Rates Offered to CAs by Various Lenders
| Bank/NBFCs | Interest Rate |
| Axis Bank | 10.75% p.a. onwards |
| Flexiloans | 1% per month onwards |
| HDB Financial Services Ltd. | 8% - 26% p.a. |
| HDFC Bank | 10.75% - 25% p.a. |
| IDFC First Bank | 10.50% p.a. onwards |
| Indifi | 1.50% per month onwards |
| Kotak Mahindra Bank | 16% - 26% p.a. |
| Lendingkart | 12% - 27% p.a. |
| Mcapital | 2% per month onwards |
| NeoGrowth Finance | 15% - 40% p.a. |
| Tata Capital | 12% p.a. onwards |
| UGRO Capital | 9% - 36% p.a. |
| Bajaj Finserv | 10% to 26% |
Also Check: Latest Business Loan Interest Rates
Processing Fees Charged by Various Lenders
| Lender | Processing Fees |
| IDFC First Bank | Up to 3.5% of loan amount |
| Bajaj Finserv | Up to 2.95% of loan amount |
| State Bank of India | Rs 2,000 |
| ICICI Bank | Up to 2% of loan amount |
| Axis Bank | Up to 2% of loan amount |
| YES Bank | Up to 2.75% of loan amount |
| L&T Finance | Up to 3% of the loan amount |
Top Lenders Offering Loans for CAs
HDFC Bank
- Purpose: HDFC Bank offers unsecured Loans to CAs to meet their business requirements, such as construction/renovation/expansion of office, working capital requirements, paying salaries to the employees, etc. The lender also offers balance transfer and overdraft facility to its applicants.
- Loan Amount: Up to Rs 40 lakh (Up to Rs 50 lakh for selective locations)
- Tenure: 1-4 years
ICICI Bank
- Purpose: ICICI Bank offers Loans to CAs branded as “Business Installment Loan” to meet the business related financial requirements of self-employed professionals with quick approval and fast loan processing .
- Loan amount: Up to Rs 50 lakh
- Tenure: Up to 5 years
Axis Bank
- Purpose: Axis Bank offers Business Loan for Self-employed Professionals to CAs to cater to their business requirements.
- Loan amount: Up to Rs 35 lakh
- Tenure: Up to 3 years
State Bank of India
- Purpose: SBI offers SME loans to CAs as term loan or overdraft to CA firms (proprietorship or partnership) registered with ICAI and currently under practice.
- Consumers can avail term loans for purchasing office equipments and for office renovation/construction/purchase whereas overdraft can be availed for salary payments of employees and to meet other overhead expenses related to office.
- Loan amount:
- For Term Loan-
- Minimum loan amount- Rs 2 lakh
- Maximum loan amount-
- For metro cities like Delhi, Mumbai, Bangalore, Chennai, Kolkata Hyderabad- Rs 1 crore
- For other cities- Rs 75 lakh
- For Overdraft– Rs 2 lakh to Rs 25 lakh
- Loan Tenure-
- Term Loan- Up to 5 years including moratorium period of up to 1 year
- Overdraft- On demand
- Margin–
- Term Loan- 25%
- Overdraft- NIL
Bajaj Finserv
- Purpose: Bajaj Finserv offers Loans to CAs as term loans, flexi term loans and flexi hybrid term loans. Applicants can avail the loan proceeds for office renovation, business expansion, travel expenses, paying employee salaries, international client meetups, etc.
- Loan Amount- Rs 2 lakh- Rs 75 lakh
- Tenure- Up to 8 years
IDFC First Bank
- Purpose: IDFC First offers unsecured Professional loans for Chartered Accountants to meet their working capital, business operations and business expansion financial needs. (No part prepayment is allowed)
- Loan amount: Up to Rs 1 crore
- The lender also offer instant loans of up to Rs 30 lakh depending on the professional qualifications of the applicant.
- Tenure: Up to 7 years
L&T Finance
- Purpose- Consumers can avail Chartered Accountant Loans from L&T Finance to fund their business requirements with loan sanction within minutes of loan application. The lender also offers online overdraft facility to its applicants.
- Loan amount- Up to 75 lakh
- Tenure- Up to 5 years
Eligibility Criteria for CAs
- Age- 22 years at the time of loan application and 65 years at the time of loan maturity.
- Eligible Entities-
- Proprietorship firms
- Partnership Firms
- Limited Liability Partnerships
- Private Limited Companies
- CA firm registered with ICAI
- CAs having Certificate of Membership or Certificate of Practice atleast 5 years old issued by ICAI
- Business Vintage- Minimum 3 years
- Business Turnover- Minimum Rs 10 lakh in the recent year
- Credit Score- Above 650
Also Read: Business Loan Eligibility Criteria
Documents Required
- Duly filled application form
- KYC Documents- PAN card, Aadhar card, Voter ID, Driving License, Passport
- Certificate of Membership or Certificate of Practice issued by ICAI and atleast 5 years old
- Balance sheet for last 2 years with Profit & Loss statement
- Bank statement for past 1 year
- ITR for last atleast last 2 years
Check Document Requirements for a Business Loan
FAQs on Loan for CA
What maximum loan amount can Chartered Accountants avail?
CAs can avail a maximum loan amount of Rs 1 crore depending on their credit profile. IDFC First Bank also offers instant funds of up to Rs 30 lakh depending on the professional qualifications of CAs.
Do I need a collateral to avail Loans for CA?
Loans for Chartered Accountants are unsecured loans offered without any collateral.
Is part prepayment or foreclosure allowed for CA applicants?
Most lenders allow partial/full prepayment to applicants availing loans for CAs. However, the prepayment charges vary across the lenders.
What is the minimum credit score required to avail Loans for Chartered Accountants?
Chartered Accountants having a minimum credit score of 650 are usually eligible for availing Loans for CAs.