Professional loans i.e., business loans for professionals like chartered accountants, doctors, lawyers, etc, are personalised credit offerings which can help them build their working capital requirement, fund real estate to run the business or even aid them in purchasing new equipment. Business loans are tailored to suit the financial needs of professionals and offer flexibility in repayment terms.
For example, business loans like a loan for a CA can help them in setting up their practice and engage more clientele as their business continues to expand. No matter what the business requires, a professional loan can also help meet the financial needs of clinics, dispensaries, office setups, etc., in a short span of time.
Moreover, these loans are unsecured loans, which means that professionals do not need to put forth any collateral to avail of this loan up to a particular loan amount.
What Can You Do With a Professional Loan?
Buying a new space: Business loans can help purchase real estate to set up or expand business. Doctors can set up their clinics or dispensaries to help patients get treatment conveniently while CAs and lawyers can set up their offices to facilitate their clientele at ease.
Working capital: Be it a small, medium, or large-scale setup, businesses need working capital to meet day-to-day requirements. Having working capital for their business is crucial for any professional who wants to ensure smooth operations and
Equipment purchase: There is a lot of equipment that different kinds of business setups require to operate, like hardware or software needs for CAs, high-end lab or diagnostic devices and machines for a dispensary. These purchases can be easily funded with the help of a business loan.
Why Opt for a Professional Loan
A professional loan can help businesses upgrade, expand, or even infuse working capital to help them function smoothly. There are many benefits that business loans offer, like quicker loan application approval, preferential rates, flexible business loan EMI tenure, etc. Let’s take a look at some of the additional benefits that professionals can avail of with a business loan –
Simpler Eligibility Criteria
The eligibility criteria for a loan for a CA, doctor, lawyer and other such professional loans is relatively simpler as compared to a personal or home loan product. It is easier for doctors, CAs, etc., to avail of business loans as they need to submit very few documents in order to apply with most banks and lending institutions.
No Collateral Needed
A Business loan is an unsecured loan product i.e., no collateral is needed to avail of this loan. Professionals can easily apply for this type of loan and avail it collateral-free up to a certain amount. However, it is crucial to note that some banks or financial institutions do require a collateral if the requested business loan amount is above a certain amount.
Higher Loan Amount
A professional loan can help you get a loan for amounts ranging from a few lakhs up to a crore, and more. This depends on the creditworthiness of the professional, their professional profile and the eligibility criteria of the business loan.
Preferential Interest Rates
Business loans are more pocket friendly as compared to other types of unsecured loans as they offer competitive interest rates. Moreover, if your credit score is 750 and above, you can negotiate interest rates with the lender and get a tailored loan as per your needs.
There is very little documentation required for professional loans and the application process for well-known banks, NBFC lenders and other financial institutions has also become mostly digital. Because of this, it has become relatively easy to apply online and avail quicker loan approval as well. Hence, doctors, CAs, and other professionals prefer business loans for their financial needs to other loan products.
Flexible Repayment Tenure
Repayment tenures for business loans are relatively flexible, which makes it easier for professionals to expand business while repaying their loan. The repayment tenure of most banks and NBFCs is anywhere between 12 to 84 months. The repayment terms of business loan EMI however, vary across different lenders, and it is important to approach multiple lenders and compare their business loan offering before taking the final call.
Be it setting up a dispensary for doctors or the need for CAs to set up an office for their practice, creating this space can be quite an added expense. Financial aid like a loan for a CA or business loans for CAs, doctors, etc., can help them arrange funds in no time and start their practice at the earliest.
Business loans help professionals cater to multiple aspects of their business, while repaying the business loan EMI amounts conveniently, at a tenure of their choice. Take that step towards starting your practice or expanding your business today, by opting for a professional loan.