At one point or the other, we all wish to pursue our skills and do away with working under an authoritative figure. Professionals such as doctors, journalists, accountants, engineers, architects, management consultants, etc. practice their trade eventually. Just like personal loans are available for all kinds of needs and requirements, professional loans assist you setting up your own business by funding you for equipment, construction, business premises, renovating premises, working capital, etc.
Government banks generally offer these loans. Certain private banks also provide loans for professionals.
Eligibility criteria for professional loans:
1) Applicants should be between the age range of 18 to 65 years
2) People who are practising trades in different professions can avail the loan
3) Group of people who are practising one profession, provided everyone is licensed
4) Copy of professional certificate
5) Professionals can include people who have completed diploma/degree
6) Individuals, joint borrowers, partnership companies and firms can apply for the loan
Documents required to obtain loans for professionals:
1) Membership certificate copies issued by professional authorities
2) Firm registration certificate
3) Papers or documents that act as proof for repayment capacity
4) Latest utility bill statement showing your name and address
Some of the features of acquiring professional loans are:
1) Half loan amount should be provided as security with one guarantor, preferably your spouse
2) Immovable properties or equipment can be given as a collateral/security
3) Some other acceptable collaterals include land and buildings, bank deposits, etc. as per bank policies
4) Personal guarantee of partners/friends/family/title holders of collaterals/securities etc. is required
5) The repayment tenure of the loan is generally 5 years
6) There is no penalty for delaying repayment of professional loans
7) Business expenses such as travel, airfare, seminar, etc. are managed by the loan
8) The loan does not finance self-assembled electronic goods
9) The loan is approved and disbursed quickly
10) Loans for professionals come with attractive interest rate and include simple application procedure
Interest rates offered on professional loans:
1) Interest rates fall anywhere between 10 to 18 per cent. It is subject to vary from bank to bank
2) Marginal interest rate is usually around 15 to 25 per cent of the loan amount
3) The maximum loan amount that you can deposit is INR 10 to 30 lakh
4) The processing fee is charged within 0.20 to 1 per cent of the amount
Some banks might ask how you will be using professional loans. Some banks might even process the loan in instalments. Each instalment will be processed if the bank finds the business is running satisfactorily.
Government banks generally offer these loans. Certain private banks also provide loans for professionals.
Eligibility criteria for professional loans:
1) Applicants should be between the age range of 18 to 65 years
2) People who are practising trades in different professions can avail the loan
3) Group of people who are practising one profession, provided everyone is licensed
4) Copy of professional certificate
5) Professionals can include people who have completed diploma/degree
6) Individuals, joint borrowers, partnership companies and firms can apply for the loan
Documents required to obtain loans for professionals:
1) Membership certificate copies issued by professional authorities
2) Firm registration certificate
3) Papers or documents that act as proof for repayment capacity
4) Latest utility bill statement showing your name and address
Some of the features of acquiring professional loans are:
1) Half loan amount should be provided as security with one guarantor, preferably your spouse
2) Immovable properties or equipment can be given as a collateral/security
3) Some other acceptable collaterals include land and buildings, bank deposits, etc. as per bank policies
4) Personal guarantee of partners/friends/family/title holders of collaterals/securities etc. is required
5) The repayment tenure of the loan is generally 5 years
6) There is no penalty for delaying repayment of professional loans
7) Business expenses such as travel, airfare, seminar, etc. are managed by the loan
8) The loan does not finance self-assembled electronic goods
9) The loan is approved and disbursed quickly
10) Loans for professionals come with attractive interest rate and include simple application procedure
Interest rates offered on professional loans:
1) Interest rates fall anywhere between 10 to 18 per cent. It is subject to vary from bank to bank
2) Marginal interest rate is usually around 15 to 25 per cent of the loan amount
3) The maximum loan amount that you can deposit is INR 10 to 30 lakh
4) The processing fee is charged within 0.20 to 1 per cent of the amount
Some banks might ask how you will be using professional loans. Some banks might even process the loan in instalments. Each instalment will be processed if the bank finds the business is running satisfactorily.
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