A Complete Guide to Taking A Loan for Professionals in India

Working professionals in need of liquidity for their personal or professional reasons can opt for a loan for professionals. Lending institutions in India extend this big-ticket loan to eligible individuals at a significantly lower interest rate. Here is all they need to know about this professional loan.

What is a professional loan?

Loans for professionals are specialised advance credit facilities extended for the working personnel, such as chartered accountants, doctors, etc. It can give a quick financial respite to the professional to bear their small to big ticket expenses. Moreover, being an end-usage restriction free loan, they can leverage the borrowed liquidity to meet any of their professional or personal financial requirements.

Major financial institutions in India extend this provision either as an unsecured loan or secured. In a secured loan, they can conveniently apply for borrowing a sizeable amount. However, as the unsecured professional loans have no requirement of mortgaging properties, they can be a preferred alternative for individuals who do not involve their estates.

While applying for a loan for professionals, individuals need to be aware of its eligibility, document requirement and application procedure to get the required sum with less hassle.

Eligibility criteria for a professional loan

Eligibility for the professional loan may vary in different lending institutions. Nevertheless, individuals can find the actual eligibility from the official website of their preferred lender.

Following are the eligibility criteria that individuals need to meet to get substantial loan amounts from the most financial institutions in India:

  • Citizenship: Indian
  • Experience: Must have required qualification and certification

Documents required to apply for a professional loan

Following are the basic documents that lending institutions across India ask for while applying for this loan for professionals:

  • Records of address: Voter ID, passport, ration card, Aadhaar card, etc.
  • Identity proof: Voter card, PAN card, passport, etc.
  • Income proof: Income Tax Records (ITR), salary statement, Profit and Loss (PL) statement, balance sheet, etc.
  • Bank account statement
  • Property documents (for secured professional loan)

Type of loan for professional

In the product portfolio of lending institutions, this professional loan is categorised according to a different occupation, as mentioned below:

  • Doctor loan 

Medical practitioners can avail a sizeable credit amount with loans for doctors. They can use the borrowed capital for professional purposes, such as establishing a clinic/ polyclinic, upgrading medical equipment or for personal reasons like children’s education.

This way, doctors can enhance their business prospects in myriad ways by availing of this credit facility. In this regard, they need to know the steps that can help them conveniently shift their business from clinic to polyclinic. It will help them avoid the mistakes that can hamper their commercial opportunities.

Furthermore, medical practitioners also need to be aware of how they can be eligible for this doctor loan. Else, they may encounter rejections or refusals of their loan application form from the lender’s end.

  • Loans for chartered accountants

With minimal documentation, chartered accountants (CA) also can take this professional loan and meet their financial crisis instantly. By having no end-usage restraint, they can leverage the borrowed amount for any reason. For example, professionals can use this credit to establish their organisation, renovate their set-ups, or achieve personal goals. Individuals need to know various aspects of this CA loan before applying for it.

Advantages of loan for professional

Following are the major benefits individuals can obtain by purchasing CA or physician loans, if you are looking to expand your practice.

    • High loan amount: Individuals can get a sizable loan conveniently to meet their large financial requirements.
  • Quick loan disbursal: The lender transfers the borrowed capital immediately after the loans get sanctioned. In fact, as the documentation process and eligibility requirements are less stringent, financial institutions process the loan application form and verify documents/properties quickly.
  • Flexible tenor: Lending institutions also allow borrowers to choose their convenient tenor according to borrowing capacity.

Apart from all these benefits, some reputed financial institutions extend pre-approved offers to their customers. Accepting these tailored benefits, they can expedite their loan application process. To check their pre-approved offers, they just need to mention their credentials, including their names and contact information.

In conclusion, working personnel can easily bear their upcoming large ticket expenses with loans for professionals. They can invest the capital for professional growth or utilise it to meet personal financial requirements as it comes with no end-usage restriction.

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