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Comparing 3 CA Loan Variants: Which Option Suits Your Needs Best?

If you are at the path to becoming a Chartered Accountant or planning to set up something of your personal in the end, then you definately might be well aware that it’s miles pretty annoying. Moreover, unique monetary needs can also stand up along the way. 

So, whether you need funds to cover course fees, set up your own practice, or invest in a personal development skill, a Chartered accountant loan can be helpful. 

In this article, we’ll discuss India’s three most common CA loan variants: the Term Loan, Flexi Term Loan, and Flexi Hybrid Loan. 

What is a CA loan? What are its top pros, and how do you avail it?

It is a loan type specifically designed for chartered accountants looking to finance their professional or even personal requirements. These days, financial institutions/banks offer them with just a single tap on your smartphone. 

It is well-known that CAs are generally offered at a lower interest rate than other personal loans. This is due to the professional qualifications of the chartered accountants and how well-versed they are in everything. It is also due to their stable income. 

  • Consolidating Debts (if any)

CAs with multiple debts to pay off, such as credit card bills or personal loans, can easily use this type to consolidate all their debts into a single loan. This ultimately helps them manage their debts more effectively as it offers flexible terms and lower interest rates. 

  • Improving Credit Score

Professionals who opt for a Loan for chartered accountant and make timely payments can easily improve their credit scores. This helps them qualify for better loan terms and interest rates in the future. 

  • High Loan Amounts

For professional or even personal needs, Chartered Accountants often require large sums of money. This is because setting up own practice, purchasing equipment, or expanding a business requires a lot of money. Therefore, the loan amount totally depends on the borrower’s income and credit score. 

When it comes to availing such loan facilities, I highly recommend the Bajaj Finserv application. It is readily available in both the App Store and Play Store.

  1. Download the official Bajaj Finserv app
  2. Sign up by entering your mobile number
  3. You’ll see the ‘Loans’ section below the search bar on the home page.
  4. Tap on it and go to ‘Loan for Chartered Accountants
  5. Enter the required information
  6. You are good to go! 

Three Types of CA Loans and their Pros

  1. Term Loan

This is the most simple and easy sort of mortgage. With this chartered accountant loan, you could quickly acquire a fixed lump sum prematurely. You pay off the loan with fixed monthly instalments (EMIs) over a predetermined term. 

  • Super easy structure: Easy to understand and manage. This is just because of its predictable repayment schedule. 
  • Potentially Lower Rate of Interest: The fixed rate of interest can be lower than that offered on other types of Loan For Chartered Accountant
  1. Flexi Term Loan

As the term suggests, it is much more flexible than a term loan. This is because it enables you to withdraw funds from a sanctioned credit limit as and when needed. Therefore, you only pay interest on the amount you utilize. 

  • Increased Control: Borrow the amount you need. This reduces your overall long-term interest burden. 
  • Manages Fluctuating Requirements: Ideal for situations where your financial requirements are not fixed or may change with time. 
  1. Flexi Hybrid Loan

This is a combination of the two types of loans mentioned above. Here, you receive a fixed amount upfront and a sanctioned credit limit for additional withdrawals. 

  • Tailored: It is pretty suitable for situations where you have a definitive upfront requirement but may need funds (additional) later.

Conclusion

When you plan to avail such a type of loan, consider all the factors mentioned above. If it’s a one-time expense, go for a Term loan. If you need ongoing funds with repayment flexibility, consider a Flexi Term Loan. And if you are looking for additional convenience, go for the third one! However, always ensure your chartered accountant loan eligibility before opting for such a loan.