Getting a chartered accountant loan for your business or personal needs can be downright stressful and also frustrating. Even after filling up the application form with correct personal and financial details, you can end up facing a rejection. So, to improve the odds of procuring CA loan without failing, you need to make sure of a few other things.
Here are 5 tips to improve your chances of getting a suitable CA loan –
- Fix your credit score
Both personal and business credit scores are essential to avail a loan. The credit score is an essential determining factor to get your loan approved. Now, if your business is new, you won’t be able to build much of a business credit score. Eventually, lender’s eyes will fall on your personal credit rating.
Whether you pay off your debts on time or not largely determine if you’ll attract or keep away lenders. Therefore, set up automated payment methods to never miss any payment due. Maintaining a good business credit score takes time and patience, but it is possible if you’re dedicated and strategic with your financial management.
- Choose the appropriate loan type
You can always avail a CA loan to fund your business or increase its working capital. But it is essential to sort out your purposes first. If you’re considering buying office equipment or renovating the existing one, then this is the loan for you.
On the other hand, if you require financing for personal uses like funding your child’s educational expenditure or renovating your home, you can opt for a Personal Loan for Chartered Accountant from NBFCs like Bajaj Finserv. They provide collateral-free loans with flexible repayment tenor, minimal documentation and nominal interest charges. Moreover, you can get your loan approved within 24 hours. Only make sure to check the CA loan eligibility criteria before applying to increase your chances of approval.
- Be prepared with all paperwork
Bring all the financial paperwork to the table before your lender asks for it. Make sure you have last 3 months’ bank statements and previous 2 years’ income tax returns ready.
Most lenders ask for –
- Certificate of Practice (COP)
- Proof of at least one property ownership
- KYC documents
While these are the most important documents required for chartered accountant loans, you may also need to provide additional papers during the process. So, keep all essential documents ready. It is also one of the quick ways to get a chartered accountant loan approved.
- Prepare a solid business plan
If you’re eyeing a business loan for chartered accountants, make sure to have a strategic business plan. It needs to be robust, comprehensive and minutely detailed. Create a strategy through market analysis and display your practice’s financial growth potential. This will prove your lender that you have proper plans to utilise the loan amount, and hence, feel confident about you.
If you want to get your loan approved smoothly, maintain a healthy credit profile, clear off all your existing debts, pay credit card bills in time. Also, there are certain questions to ask yourself before applying for a loan. Though it can never be guaranteed that you’ll get your CA loan approved, being prepared with all the eligibility requirements will increase your chances of availing the finance.