Self-employed professionals need to know that professional loans are readily available for doctors, chartered accountants (CAs), and lawyers with increased professional responsibilities.
Similar to personal loans, these loans are offered by banks to cover expenses for basic facilities and infrastructure for office maintenance.
Self-employed individuals must submit audited financial income tax returns for the last two years and should have been running their business for at least two years.
Doctors and CAs must be licensed to practice, and loan companies verify the borrower’s minimum income, professional skill, experience, age, and credit score at the time of application.
Interest rates for professional loans are similar to personal loans and vary depending on the bank. It is advisable to compare interest rates from different banks, and a credit score above 750 can help secure a loan with attractive rates. The interest rate usually ranges from 11% to 20%, depending on the borrower’s professional qualification.
Professional loans can be easily applied online, and individuals with a good credit score and an account in the lending bank can obtain the loan without requiring a consultation.
Professional loans offer unique flexibility in choosing the loan repayment tenure, ranging from 12 to 84 months. This allows you to select EMIs that align with your financial capabilities, putting you in control of your loan repayment.
The loan amount available varies based on the individual’s business level and usually ranges from Rs. 5-10 lakhs, depending on the professional profile and qualification.