Professional loan Interest rate, Eligibility and its features

The professional loan is the facility of credit line that provides to the working professional such as a doctor, chartered accountants, CS, engineers, lawyers, etc., to fulfill their requirements like updating equipment, growth of a business, etc. In India, a professional loan is offered by various banks, financial institutions, or NBFCs to the borrowers. It is an unsecured loan hence; it is a collateral-free loan. 

Features of a professional loan  

The features of a professional loan vary from bank to bank. Given below are some features: -  

• The professional begins from 1 lakh to a vast amount of up to Rs. 1 crore. 
• The flexible repayment tenure of up to 5 years. 
• The loan amount and rate of interest depend on the profession of the organization such as CWA, CS, Doctors, Lawyers, CA, etc. 
• A Professional loan is an unsecured loan therefore, it does not require any security as collateral. 
• It can be used for many purposes like office renovation, needs of working capital, buying equipment, etc. 
• Specific travel expenses that are related to the business such as seminar fees, accommodation, flight fare, etc., should also be financed by a professional loan. 
• Several lenders provide professional loans on different terms and conditions for organizations with verified professionals. 

Eligibility criteria for a professional loan 

Types of professional loans 

There are various types of loans identified on the basis of many factors. The borrower can select the type of loan that he wants to take on the basis of their eligibility and requirements. 

• Professional Loan for Doctors 

Professional loans for doctors provided up to Rs. 1 crore with repayment tenure and smooth EMIs. It is a hassle-free loan process and requires less documentation. 

• Professional Loan for Chartered Accountants 

Loans for Chartered Accountants are provided to fulfill their requirement of working capital, purchase of equipment, maintain business cash flow, pay off rent and salaries, etc. 

• Professional Loan for Engineers 

A loan for engineers is offered for many purposes such as mechanical, computer science, IT, electronic engineers, and chemical. Engineers can also get personal finance with repayment tenure. 

Rate of interest and processing fee for professional loans by Top banks 

 Documents required for professional loans 

• 2 passport-sized photographs 
• Aadhar Card and Passport 
• Copy of PAN Card 
• Bank statement for the last year of salary account. 
• Appointment letter and salary slip for the past 3 months. 
• Complete property documentation with Chain MAP + ATS. 
• Permanent address proof and also needed if rented. 

Charges applicable to professional loans 

Given below are the charges that are applicable to professional loans. 

• Late payment fee: - It is a charge or a penalty that borrowers have to pay when they fail to pay EMI on time. 
• Pre-payment charges: - A pre-payment charge or penalty is an additional fee charged by some banks if the borrower pays their loan early. 
• Statement charges: - The statement charges include the cost of printing and sending hard copies across to you. 
• Processing fee: - It is the total cost charged for one time by the banks for processing the loan. 
• Stamp duty: - Stamp duty is the government tax that is placed on the legal documents 
• Foreclosure charges: - Foreclosure charges are the extra amount that the bank charges from the borrowers for closing the loan prior to the tenure is over. 

Financeseva allows you to compare the best deals by top banks and financial bodies for professional loans. 

Also read: - Professional loans for Doctors, CA, Architects