The availability of professionals like doctors, engineers, lawyers and chartered accountants is relatively low when compared to their demand in the society.
For instance, out of 11.57 lakh registered allopathic doctors in India, only 9.26 lakh are practising. Similarly, out of the total 2.82 chartered accountants as many as 1.25 lakh are involved in full-time practice in India.
There are several reasons why professionals find it difficult to continue their practice. However, monetary assistance required to expand and maintain their practice happens to be one of the top ones.
Nonetheless, as more financial institutions are providing customised loans for professionals, their demand among such individuals is also surging.
It can be hoped that by availing timely financial assistance, the disparity in the number of professionals and their demand would eventually subside.
Reasons for the rising demand for professional loans
By availing loans for professionals, doctors, engineers, CAs, etc. can meet these requirements –
- Expand their practice by opening a new branch.
- Start their professional firm.
- Appoint qualified staff to improve their business’ proficiency.
- Install the latest equipment and potent technology.
- Meet capital requirements and maintain everyday operations.
However, to avail timely financial assistance in the form of loan for professionals, one would be required to follow a few steps. For instance, they would be required to meet eligibility criteria, providing requested documents and applying for suitable loans.
Steps to avail a professional loan
Professionals can avail a loan in these steps –
- Check the features
Professionals like doctors, engineers and CAs should find out about the features and offerings of a customised loan option to ensure all their financial needs are taken care of.
For instance, they should avail loans for professionals that come with these features –
- High value.
- Competitive rate of interest.
- Simple application and documentation process.
- Prompt verification and approval process.
- Flexible repayment tenor.
- The requirement for collateral or absence of it.
- Restriction on the usage of the loan value.
- Check the eligibility criteria
Finding out about the eligibility criteria for CA loan and documents needed to apply for a CA loan is vital before applying for them.
It helps to lower the risk of rejection and protects the appearance of hard inquiries on applicants’ credit report.
These following serve as an example of CA loan eligibility criteria in general –
- Must belong to the age group as specified by the financial institution.
- Should possess a clean credit history and high CIBIL score.
- Should hold a Certificate of Practice that is active for 4 years.
- Should have a steady flow of monthly income.
- Must possess a house or firm in any of the locations as specified by the financial institution.
- Find out about the documents
Next step of applying for loans for a professional is to find out about the requisite documents as requested by a financial institution.
For instance, these following are among the documents needed to apply for a Bajaj Finserv Loan for Doctors –
- KYC documents.
- Medical registration certificate.
- Proof of income including bank statements and income tax returns.
The NBFCs also extends pre-approved offers to their customers, which further helps to make the process of availing loans convenient and straightforward.
The said offers apply to several financial products, including personal loans and business loans.
You can check your pre-approved offers by simply providing your name and phone number.
- Learn about the application process
Lastly, applicants should find out about the application process and associated formalities to simplify the process significantly.
Typically, one can apply for loans for professionals by simply visiting the official website of an NBFC and following the related instructions.
Hence, it can be said that the primary reason why the demand for financing schemes for professionals is on the rise is owing to the fact that borrowers can meet any of their requirements.
The terms and conditions they have to fulfil are also based on their professional qualification, which makes availing these loans even more uncomplicated.