Exploring the Variety of Professional Loans Offered to Individuals in Various Professions

A professional loan is a special type of personal loan that is offered to professionals. Professionals like chartered accountants, engineers, lawyers, etc, who run their own practice need funds to grow and expand their business. They can get a professional loan offered by banks and NBFCs for expansion plans or working capital needs. These loans are customised according to the needs and requirements of certain self-employed individuals. Professional loans are usually unsecured and are an easy way of financing for professionals. In this article, we will cover topics such as different types of professional loans, eligibility criteria, documents required and benefits of getting a professional loan.


Different Types of Professional Loans and Their Uses


The features and loan amount of a professional loan varies from profession to profession. The loan amount offered also depends on the work experience, credit history and degree of the professional. The different types of professional loans are:


Loan for Company Secretaries and Chartered Accountants


It is crucial to reinvest in the practice if you are a company secretary or chartered accountant. This helps with maintaining a steady working flow of capital and expanding operations. You can get an unsecured loan of up to ₹55 Lakhs to meet the needs of your business. You can use this fund to hire experienced specialists, open a new office, etc. 


Loan for Doctors


In order to ensure a thriving medical practice, it is important to invest in high-technology medical equipment and state-of-art facilities for the patients. The loan amount offered to doctors goes up to ₹75 Lakhs. As a medical practitioner, in case you are planning to open a new clinic, hire more doctors or add a new department in your clinic, you can opt for this loan. You can also use this loan to fund non-practice related expenses like renovate your home, overseas vacation and to finance your master’s degree.


Loan for Lawyers 


Lawyers usually travel a lot for international conferences to market their services and network, and this requires a lot of money. They also need to set up their own office, upskill their employees and add new services to cater to the needs of their clients. You can get a loan for lawyers for your financial requirements. You can get up to ₹1 Crore that you can repay in easy instalments.


Loans for Consultants 

In case you are in the financial or management consultancy sector, a professional loan that is tailored for consultants can help you with your financial needs. You can use this for your marketing requirements, employ new consultants and travel abroad. A consultant loan, just like other types of professional loans can be used for other non-business expenses.


Loan for Engineers and Architects 


As a budding architect or engineer, you can make use of professional loans to set up a new office, buy new equipment, hire more staff, scale up your business and purchase software. You can get a loan amount of up to ₹1 Crore without any collateral.  The loan for engineers requires minimal documentation and can be disbursed quickly.


Eligibility Criteria For Professional Loans


The criteria may vary depending on the profession you practise and the lender’s requirements. That being said, here are the basic eligibility criterias that is common for most professional loans:


  • The applicant must be between the ages of 25 and 65
  • The applicant must have a good CIBIL score
  • The applicant must be a resident of India
  • The applicant must have a professional diploma or degree in that field
  • The applicant must be self-employed


Documents Required For Professional Loans


The list of documents that you have to submit while applying for a professional loan are:


  • Identity proof: PAN card, Aadhar card, Passport
  • Address proof: Ration card, Utility bills, Aadhar card
  • Copies of your professional diplomas and degree certificates
  • Last 6 months business bank statement 
  • Profit and loss statement of the business
  • Ownership proof


Advantages Of Professional Loan


There are a variety of reasons as to why you should choose professional loans. Some of them are:


  • Easy online process: The application process is 100% digital and the documentation is minimal. The entire process is quick, easy and can be done from the comfort of your house. 


  • Fast disbursal: Once the details that you have provided are verified, the loan is approved within minutes. After this, the loan amount is credited to your bank account in 24 hours. 


  • Flexible repayment tenure: Depending on your eligibility and loan provider, you can repay the loan amount comfortably in a span of 12 to 60 months.


  • Affordable rates of interest: Many lenders offer low interest rates so you do not have to worry about the EMI outgo. Depending on the loan provider, you can also  prepay the loan amount with minimal to no charges. 


  • Unrestricted usage: It is up to you to decide how you want to use the money that you have borrowed through professional loans. It can be used to grow your practice or can be used for non-business related expenses like vacation, home renovation, etc.


  • No hidden charges: You do not have to worry about hidden expenses when it comes to professional loans as lenders are upfront about any additional charges. Therefore, it will not come as a surprise later.


The reasons mentioned above makes professional loans an ideal loan choice for professionals to grow their business and expand their practice. Make sure to compare the loan amount, interest rate and repayment terms offered by various banks and NBFCs before you choose a professional loan.

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