We have heard of home loans which are debt instruments that finance the purchase of a ready-to-move-in property for all eligible applicants. Likewise, we have heard of professional loans like Chartered Accountant loans that are more of business loans for qualified CAs. What is not too heard of is a dedicated home loan for a Chartered Accountant which is basically a home loan for a CA professional.
Home loans are long term debts whose tenures can stretch as long as 20 years and they involve a large principal, considering the steep real estate prices in almost every part of India. There are two aspects of availing a home loan- the down payment that is to be paid by the home buyer and the remaining portion is covered by the home loan.
Home loans for CAs also work in the same way, except that the maximum amount that can be borrowed is higher for CA professionals as compared to the generic home loans.
Secured loans can be availed by eligible Chartered Accountants with the requisite professional experience up to Rs 2 crores. Here, any property of significant value is to be mortgaged.
If you are a CA and are on the lookout for home loans, you can consider the points mentioned below:
Borrowing the Right Amount
With a stable practice, income and a significant client base, CAs can easily apply and receive approval on the amount they seek. Having said that, it is important that only the required minimum amount be borrowed.
Opt for the most feasible but shortest tenure
This is because, a loan is a debt which is best repaid at the earliest. Moreover, the longer you take to repay, higher will be your interest costs.
Be Consistent and Regular with the Repayment
EMIs need to be paid on time as it reflects well on your credit report and score.