How To Get The Best Interest Rate On A CA Loan

Loans can be used to finance your business expansion plan, but if you are a chartered accountant and looking for a loan to arrange funds for your new office, the financial institutions have got something special for you. 

Professional loans are a new provision offered by the lenders, and it has specialised loans for chartered accountants too, and they are called as CA loans.

What are CA loans?

A CA loan is a lending provision offered by the lenders and is a part of professional loans. CA Loans are a type of professional loans with terms and conditions made for chartered accountants. The best thing about a chartered accountant loan is they are collateral free loans.

There are various benefits that you can avail from a CA loan; such as, you can avail a high amount loan. Personal loans offer a maximum amount of INR 25 Lakh for the loans whereas CA loans offer INR 30 Lakh for the loan amount. 

If you apply for a CA loan from a Non-Banking Financial Company (NBFC), you can get instant loan approval from the lenders. 

When it comes to easy and convenient repayments, CA loans offer adjustable EMI as well as the tenor to make loan repayment easy for you.

All these benefits maybe pleasing and tempting but to make the most out of a loan, you must look at all the aspects of the loan with the most important thing, i.e., interest rates. 

Interest rates are an important part of any loan as they have a major impact on the final repayment amount. 

Though it is compounded and added to the final amount on a yearly basis, the interest rate is calculated throughout the tenor.

There are ways which can get you best interest rates on your chartered accountant loans they are as follows:

Apply during festivals: During the festive seasons, lenders introduce attractive offers on loans. Some lenders even offer special interest rates on professional loans that are usually lower than the normal interest rates offered. So applying for a chartered accountant loan might get you a lower interest rate for the loan. 

Talk to your lender: Most of the time the lenders do not set interest rates according to the repo rates regulated by the Reserve Bank of India (RBI). The lenders set the interest rates a bit higher than the repo rates. So if you have a good relationship with your lender, you can ask your lender to lower the interest rates slightly lower than the normal. 

Considering alternate lenders: Banks are regulated by the RBI and are not allowed to make any reforms without its consent. Due to which the banks are not allowed to make any reforms in their lending terms. However this is not the case with the NBFCs, the NBFCs are not regulated by the RBI, and they are free to frame their own terms. This allows them to provide interest rates according to their own consent. For low interest chartered accountant loans, you can consider applying to the NBFCs. 

Professional loans are an altogether different avenue for the financial institutions as well as the borrowers. To get the best interest rates on CA Loan, you can use the above-mentioned tips.