Loans for Chartered Accountants

Business Loan for CA

Most lenders offer unsecured loans to self-employed professionals to meet their business requirements. Business 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.