Professionals such as doctors, chartered accountants, engineers, lawyers and others running their own practice need a constant infusion of funds. They can make use of professional loans offered by lenders such as banks and NBFCs for working capital needs or expansion plans.
Professional loans are tailor-made for the requirements of certain self-employed professionals. While some of these loans may require collateral, they are usually unsecured, giving professionals an easy way to access needed financing.
Loans such as a doctor loan or CA loan usually come with an easy application process, require minimal documentation and offer ample finance at competitive interest rates. Read on to know more about professional loans and how professionals can leverage them for growth.
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Various Kinds of Professional Loans and Their Uses
The loan value and features of a professional loan may vary slightly for different professions. The amount offered is also dependent on the degree, work experience and credit history of the professional. Here are the types of professional loans available:
Doctor Loan
A thriving medical practice requires timely investments to ensure quality medical care and state-of-the-art facilities for patients. Doctor loans offer funding of up to ₹75 Lakhs, usually without the need to pledge any collateral.
As a doctor, if you plan to set up a new clinic, add a new wing to your existing one, buy surgical equipment or hire skilled staff, you can opt for a customised doctor loan. You can also rely on such a loan to:
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- Finance an additional course
- Advance your skills
- Pay for your child’s education
- Renovate your home
- Travel to an overseas destination for a family vacation
A doctor loan, like most other loans for professionals, does not place any restriction on how you use the loan amount.
Professional Loan for Chartered Accountants and Company Secretaries
As a chartered accountant or a company secretary, reinvesting in the practice as you grow is key. This helps you maintain a steady flow of working capital and to expand operations. You can apply for a collateral-free professional loan of ₹30-₹ 55 Lakhs to meet the specific needs of your practice.
This may be related to expanding your team with experienced specialists, establishing a new office in a business district, adding cyber security and cloud infrastructure and more.
Professional Loan for Lawyers
As a lawyer, you may need to travel to international conferences to network and market your services, set up an impressive office, add new specialities to your offerings and help your employees upskill.
All this is easier with a loan customised for legal professionals. Terms loans of up to ₹1 Crore are available for lawyers for professional and personal needs.
Professional Loan for Engineers and Architects
As a self-employed engineer or architect, you can benefit from professional loans to set up a new firm, buy needed equipment and software, or scale up your practice. You can get collateral-free term loans for an amount of up to ₹1 Crore for any of these purposes and more.
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Professional Loan for Consultants and Other Professionals
If you are a management or financial consultant, professional loans tailored to consultants can help meet your initial and continuing needs. You can use them to bridge gaps in your cash flow, for marketing needs, to employ support staff, and travel to different business destinations.
The loan amount, interest rate and features vary between lenders, and you can choose the ideal offer based on your needs.
Eligibility Criteria
While the criteria vary according to your profession and the lender’s requirements, to qualify for a professional loan, here are the general terms you will need to meet.
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- Hold a professional degree or diploma in your field
- Have a good CIBIL score
- Be between the age of 25-65
- Be a resident of India
- Be self-employed
Benefits of Availing a Professional Loan
Here are some of the advantages you enjoy when choosing professional loans as a tool to grow your practice.
- Convenient 100% Digital Process
From choosing the right loan to applying for it and submitting the paperwork, you can get a loan online from start to finish. The entire process can be done digitally in a few simple and quick steps. This allows you to avail of a loan without having to take too much time out from growing your practice. - Simple Eligibility Terms and Minimal Paperwork
Since a professional loan is tailored to your profession, qualifying for the loan is easier. Lenders can verify your credentials with a few KYC documents and income proof. - Speedy Access to Funds
Your loan is approved in minutes once the documents are verified. The loan amount is usually credited to your bank account in 24 hours, allowing you to meet business emergencies with ease. - Unrestricted Use
There is no limit to what you can use the funds for when you take most professional loans. You can utilise the loan amount to meet any requirements of your practice or for your personal goals. - Flexible Repayment
Depending on your lender and eligibility, you can generally repay your loan over a tenure of 12 to 60 months. - Large Loan Amounts Without Collateral
Instant Professional loans provide you with the opportunity to avail of high loan amounts without pledging collateral. This helps you avoid risking your assets. To add to your convenience, you can get two types of loans in most cases:
-Term loan: This is a regular loan where the full loan amount is credited to your bank account. You can then pay it off in regular instalments.
-Hybrid Flexi Loan: This is a flexible credit facility where you are given the sanctioned amount as a credit line, from which you can make withdrawals as and when you need funds and pay interest only on the amount you utilise. Further, you can choose to pay only the interest in the initial years to lower your EMIs. - Part-Prepayment Facility
You can opt to prepay the loan with minimal or no charges, depending on the lender. This helps you become debt-free whenever your finances allow you to make additional payments.
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As you can see, a professional loan can support your aspirations as a self-employed professional in a variety of ways. Such loans score higher than any other credit schemes currently available in the market for professionals, given their customised approach and value-added benefits.
The best way to proceed is to compare your options, check the rates and other charges, and ensure you meet the eligibility criteria before you apply. So, get started today and take your practice to the next level!
Disclaimer:
The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.
