For Chartered Accountants who have not yet joined a firm, and are still successfully self- employed, it makes sense to apply for a CA loan if they want to open a firm of their own, rather than trying to bear the entire financial burden themselves. This is because self- employed CAs often have variable payments and there is no fixed salary. Hence, depending on their average yearly income, they are in a better position to calculate their monthly EMIs while making repayments. This is because, with employed CAs who are working for a firm, a number of things may go wrong- a sudden downsizing of the firm might leave them high and dry. With Bajaj Finserv Loan for Chartered Accountants, many CAs can now realize their dreams of having a firm of their own and they can get their first capital by applying for a loan.
For self employed CAs, it is also quite simple to fulfill the CA loan eligibility criteria. Amongst other things, the criteria demands that a CA should be self- employed for at least four consecutive years before he can apply for a loan. This is quite simple for a self- employed CA and brings him a step closer to getting his loan approved. On the other hand, since he alone is responsible for his employment and his career decisions, he has a lot more control over his income and chances of external factors ruining his growth are almost negligible. This makes it easier for him to chart out a repayment plan much in advance and this is definitely an added bonus.
Being a CA himself, he would also be able to calculate the CA loan interest rate in a better manner. If a CA can maintain a good credit score, then he is also is a position to negotiate with his creditors and bring down the interest rate. However, it might be a good idea to convince them about the future plans of your firm and where you see your firm in the next five or ten years. With sufficient experience in the finance industry and with the opportunity to see the changes in the taxation system and interest rate pattern over a period of time, a CA would be far sighted enough to understand what the financial scenario would most likely be in the next couple of years since he starts making repayments, and choose a repayment plan accordingly.
Moreover, with CA loans being unsecured, the question of mortgaging one’s property or providing any other form of security does not arise. Rather than putting one’s entire money at risk, opting for a loan would mean that one’s own money is safe and if the repayment stops or is obstructed for a period of time, one would have the necessary resources to pay the EMIs as well as take care of own personal financial emergencies like paying a sudden medical bill or arranging a wedding in the family.