Loan for Professionals
Professionals such as Engineers, Doctors, Chartered Accountants looking to establish grow, or expand their business or practice can avail loan subject to eligibility criteria. Filecrat helps you get funds for your requirement easily.
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Loan for Professionals
Loan for Professionals is a scheme for lending loans to professionals such as Engineers, Doctors, Chartered Accountants and others who possess specialized skills and expertise in their field for establishing, growing, and expanding their business or practice. The loan can be either Term Loan/ Demand Loan/ Cash Credit and/ or Overdraft as per the scheme and requirements of professionals being sanctioned on the basis of their professionals’ qualifications, capabilities, expertise, track record, revenues, and reputation.
Purpose of The Loan
- Purchasing/ construction of office premises
- Expansion/ Renovation of the office premises
- Working Capital
- Purchasing of general equipment such as computer, printer, photocopy machine, etc. as well as business or professional equipment such as bulldozers, graders, and medical /diagnostic equipment.
Note: The tenure of the loan ranges between Rs. 50,000 to Rs. 2.00 Cr. depending upon the security offered, repayment capacity, etc. but generally, it ranges from 1 year to 7 years depending upon the repayment capacity & interest rate.
Benefits of Loan for Professional
Quick Sanction: The turnaround time for processing this type of loan is short, i.e. the loan will get approved quickly.
Easy Disbursal: The required documentation is less as compared to the traditional loans which minimises the time gap between sanction & disbursal of the loan amount.
No Collateral Requirements: Generally, the lender does not insist for collateral security upto the particular loan amount. In the case of loan for professionals, the assets created out of the profession is considered as the security.
- Professionals who are engaged in their practice
- Applicant must be within the age group of 25-65 years
- Post-qualification work experience must be at least four years for doctors and CAs, otherwise, it requires an experience of at least five years
- The business or practice must be a profit-making engagement with a minimum turnover of Rs 1 Lakh
- The CIBIL Score of the applicant should be satisfactory
- The income should be steady to ensure that the loan will get repaid on time
STEP 1: After selecting a bank, we fill your loan application form & attach the required documents.
STEP 2: Bank will evaluate the submitted documents. Legality of the documents will be checked by the bank. Some banks may even visit your place of business for evaluation.
STEP 3: After all the evaluations bank will send a sanction/ approval letter.
STEP 4: Signing of the loan agreement and disbursal of the amount.
- Consultation with our Loan Advisor
- Complete Assistance in Paperwork
- Quick disbursal of loan
- Proof of Professional Degree
- Copy of PAN
- Last 12 months Bank Statements of the Account Associated with the business
- Income Tax Return for last 3 years
- GST Returns for last 1 year
- Audited Financial Statements for last 2 years
- Trade License & other proof of running of business.
An interest rate for this type of loan is different for every financial institution/ bank and depends upon various other factors such as credit worthiness, scope of business or practice. The interest rate is lower if the loan is backed by collateral security.
The loan for professionals is generally sanctioned on the basis of business or practice revenue, experience, expertise, reputation in the market, etc.
Any professional possessing a professional degree from a recognized university is entitled to avail this loan.
Yes, a borrower can repay it and generally no pre-payment penalty is imposed if the loan gets repaid after a year.
The processing charge ranges from 0.50% to 2.00% of the total sanctioned loan amount.