There are over 280,000 Chartered Accountants in India. Around 132,000 CAs are in active practice today. CAs are one of the most well-paid and sought-after professionals in the country. High annual incomes offer them with easy eligibility to substantial amounts for home loans as well as on other loans.
Financial institutions and NBFCs like Bajaj Finserv offer Home Loan for Chartered Accountants, tailored to meet their requirements. Availing a home loan is an important decision for any individual considering the long repayment tenors. As such, it is crucial to choose the most beneficial terms and conditions before opting for a loan.
One must carefully consider the various aspects of these loans thoroughly before they go forward with it. Avoid making some common mistakes while taking a CA loan that numerous individuals make simply because they do not know the right step forward.
Here are the best practices to follow before applying for a loan for CA.
Check your credit score
The credit or CIBIL score of an individual uses various metrics to calculate the likelihood of that person to pay back their credit. The score ranges between 300 and 900. Individuals with a higher credit score are more likely to get loans. Bajaj Finserv offers Home Loans for CAs to individuals who have a CIBIL score of around or above 750.
Individuals with a low score can improve their score over time before they apply for a home loan for Chartered Accountants. Clear your existing debts, keep a check on the credit utilisation of your card and avoid defaulting on repayments to increase your score.
Calculate the tenor realistically
Bajaj Finserv offers Home Loans for Chartered Accountants with tenors of up to 240 months (20 years). You must always calculate how much you can repay every month as EMI and align it with your daily finances. Take your total earning and expenditures into account and choose the tenor accordingly.
A longer tenor will ensure that you have to pay a lesser amount every month while a shorter period means that the total interest you pay is lower.
Consider pre-approved offers
There are many add-on benefits that financial institutions offer with such financial advances, to help borrowers repay easily over time.
For example, Bajaj Finserv provides brings you pre-approved offers for home loans, personal loans, business loans, and multiple other financial products. Such offers simplify the process to avail a loan and also help you save time. All you have to do is share a few necessary details and check your pre-approved offer.
Take one-time charges into account
There are some processing fees and one-time costs involved when you take a home loan for Chartered Accountants. It varies between different financial institutions. Bajaj Finserv has a minimal processing fee of below 1% and a penal interest of 1% per month. Many other lenders charge loan statement charges, part-prepayment charges and principal and interest statement charges as well.
Make sure that you are aware of all these charges while you apply for the loan.
Choose between fixed and floating interest rates
There are two types of CA loan interest rates that you can choose between- fixed and floating. A fixed interest rate stays constant throughout the tenor whereas a floating rate is subject to change every quarter as per the RBI rates. There are many factors to consider on how to get the best CA loan interest rate. However, it is usually a good idea to opt for fixed rates in case of short-term loans and floating rates for tenors exceeding 7-8 years.
These are some of the common oversights that people make while availing home loans for CAs. It is crucial that you consider all these to get the best terms on your loan amount.