Chartered Accountants have always been one of the most sought after professionals in the country, primarily due to the rigorous training that they undergo. The scarcity in the number of CAs in comparison to their demand is another reason for this. As per The Times of India, there were about 2.82 lakh practising Chartered Accountants in India, as of April 2018.
Nonetheless, despite being specialists in finance and its related aspects, CAs often find it challenging to undertake professional and personal ventures involving high-value expenses due to a lack of funds. It primarily holds true for those who are in the initial stages of their career.
In recent years, however, financial institutions across India are making specialised loans available to professionals like CAs that can help meet various requirements. With these CA loans, one can finance setting up their own firm, expand their existing business, or even meet other personal needs.
However, with several types of loan options available, one might become confused as to which one can effectively help to meet their needs.
So, if you are looking to avail a CA loan, read on to know about which can be the most convenient financing option for you.
What to Look for in a Loan for Chartered Accountants?
While most CA loans in India can help to meet the professional financial requirements of an individual, seldom do the funds cater to their personal needs.
CAs might require a loan to purchase a house, fund a wedding or even meet emergency medical requirements. In such cases, it is best to avail a loan which does not impose end usage restrictions. The loan for chartered accountant loan repayment options also differ from one lender to another.
Furthermore, most of the CA professional loans are unsecured ones, which subsequently have a high rate of interest and other stringent eligibility criteria in tow along with limited funding. In this regard, one should seek for secured loan options, and maximise the utility of the assets in their possession to avail funds.
With such parameters in mind, one should look for a loan option that satisfies these criteria effectively.
A gold loan, for instance, is one of the cheapest asset-backed loans that can see to all of your personal and professional financial requirements comfortably.
Gold Loans – Why Do They Make an Excellent Proposition as CA Loans?
Gold loans come as secured funds wherein individuals can avail high-value loans without eroding the equity of their assets. Chartered accountants can utilise these loans to fund several financial requirements, including –
- Setting up a CA firm
- Expanding their already existing firm
- Purchasing a property/ investing in house construction
- Any other miscellaneous big-ticket expenses
Since there are no end-use restrictions to gold loans, they have multi-faceted utility.
Further, gold loan for chartered accountants eligibility criteria is simple to meet, making them easily accessible for all.
Alongside these, a gold loan, when availed from Rupeek Fintech Pvt. Ltd. offers several other benefits to CAs, making them especially profitable over other loan options.
Following is an elaboration on the benefits that you can enjoy if you avail a gold loan from this lender.
Benefits You Can Enjoy with a Gold Loan
While gold loans allow borrowers to optimise their benefits, the ones offered by Rupeek are equipped with several other attractive features, making them the best loan for Chartered Accountants.
Few of these features are as follows –
- High loan to value ratio
Loan to value or LTV refers to the percentage of your asset’s total value that you can avail as a loan. Now, your gold’s valuation is done as per the formula below –
Value of gold = Net weight X per Gram rate X Purity
The LTV is then given as a percentage of this value.
For instance, if your gold is valued at Rs. 5 Lakh, and if the lender provides LTV of 80%, the maximum loan amount you can avail will be Rs. 4 Lakh. Rupeek offers the highest LTV on its gold loan as per directives set by the RBI, allowing you to avail a high loan value against your gold.
- Low interest rates
You can also avail the lowest interest rates on gold loans in the market via this lender, allowing you to repay the loan affordably. Since it is a secured loan option, it is available at a nominal interest rate and without credit score checks or any other such formalities.
- Doorstep loan facility
With this first-in-market facility introduced by Rupeek, individuals can avail a gold loan from the comfort of their home, without having to visit the lender’s office. They can simply make an application through the lender’s app or website. A loan manager will then be appointed to visit the borrower’s house on the scheduled date to complete formalities like KYC registration and gold valuation. If everything is in order, the loan will be approved with such minimal documentation.
- Instant loan disbursal
Upon completing the loan for Chartered Accountants loan online apply process, and its subsequent approval, the loan amount will be disbursed to the borrower’s account instantly. From loan valuation to disbursal, the process only takes 30 minutes to complete. Also, until the time of disbursal, the loan manager will wait at the borrower’s house and leave with the pledged gold only after the applicant receives the loan in their bank account.
- Security of the asset
The gold pledged is collected in a GPS-trackable bag for a safe transportation and deposited for storage at the nearest partner bank’s safety vault located within 3 km of the house. It is worth mentioning here that lending from Rupeek is backed by leading banks like ICICI Bank, Karur Vysya Bank and Federal bank.
- Easy repayments
Repayment of a gold loan is simpler and hassle-free than many other loan options. You can enjoy the benefit of a flexible tenure ranging between 3 months and 6 months, which can be further extended by another 6 months.
During this tenure, you will only have to make the interest payment for this gold loan availed as a CA loan. The rest of it has to be repaid in bullet payment at the end of the loan tenure. It can help to alleviate your financial burden to quite an extent. You can also opt to defer the entire loan liability until the tenure ends and pay it at once.
With such benefits and more, a gold loan for Chartered Accountants makes for the cheapest asset-backed loan option. With easy availability and repayment procedures, you can fulfil your financial requirements as a CA, both personal and professional, with ease.