The financial institutions offer certain types of loans for salaried professionals such as company secretaries, doctors, architects, chartered accountants, architects, and others termed as self-employed. Loan for professional fall in the category of unsecured loans since there is no collateral involved.

Due to the default ratio being very low in this type of loan, loans for working professionals possess higher loan amounts, lower rates, and quicker processing facilities. The loan tenure ranges from 1-5 years and the loan amount can go up to Rs 30 lakh or even more, according to the present income of the professional and repaying capacity. In terms of qualification, at least post qualification experience is needed to avail of this loan.

Features of Loan for Professionals

A professional loan helps in expanding business, upgrading equipment or software, and in special cases when the payment from the client gets delayed or the reimbursement process is very slow, thus, covering the cash flow gap of the business.

Following are few features of the loan for working professionals:

  • It is approved within 3 days of the application process.
  • Turnover of the business, net profit of the business, gross receipts, and average bank balance are used to calculate the value of the loan.
  • It is an unsecured loan since there is no loan involved in it.
  • It also covers the security of your loved ones like if the client dies of natural or accidental death, the nominee of the customer can take the payment protection insurance which insures the principal outstanding on the loan for working professionals up to a maximum amount of the loan.
  • You will not have to make use of other savings for loan repayment.
  • You can avail the tax benefits as per the laws.
  • The package is a combination of loan as well as insurance.

Various Types of Loans for Professionals

Professional loan for doctors

Being a doctor is an honorable profession and the professional loan for doctors is tailored according to your needs. Basically, it is available in four types of loans – business loans, home loans, personal loans, and loan against property. The loan is provided to individual doctors and medical practitioners with no collateral required in the application process. Its tenure ranges from 12 months-60 months.

The loan is provided for certain purposes such as procurement of office equipment, buying ambulance or car, setting up operation theatre, etc.

Professional loan for engineers

The professional loan for engineers aids salaried and self-employed engineers easily meet their necessary needs. Engineers with a monthly salary can avail professional loan for engineers up to Rs 25 lakh to meet immediate needs whereas self-employed can seek loans for up to Rs 15 lakh to meet their corporate needs. You will have to pay interest only for the amount used, thus, enabling you to reduce EMIs for up to 45%.

Professional Loan Interest Rates

The professional loan interest rates vary from 11.25% per annum to 20% per annum or even higher, depending on the professional’s credit history, number of years in operation, annual turnover, revenue, profits, and the banks or NBFCs certain guidelines to offer the loan for working professionals.

Eligibility Criteria Required for Loan for Working Professionals

Following is the professional loan eligibility criteria for applying for loan for professionals at Indiakaloan.com:

  • Businesses running in the industry since last 2 years
  • Applicant should have attained the age of 25 years and should not be older than 65 years at the time of loan mature
  • Businessmen looking for loan to expand their business should possess a minimal annual income (ITR) of Rs 1 lakh per annum
  • People involved in the profession of doctor, chartered accountant, architects, company secretaries and those involved in consulting or self-practice
  • Individuals with at least 4 years of experience after qualification for CA or Doctor and at least 5 years of experience for architects and CS.

Documents Required for Loan for Working Professionals

To avail loan for working professionals, you will have to submit minimal documentation thus, making it easier to process your loan application and disburse the funds easily. Below is the list of documents needed for the same:

  • PAN card
  • Passport
  • Voter’s Id
  • Driving license
  • Proof of highest professional degree
  • Previous six months bank statement
  • Aadhar card
  • Updated ITR and the computation of income, including balance sheet and P & L account for the previous 2 years, after being CA certified/audited
  • Proof of continuation (Establishments/Trade license, ITR, sales tax certificate)
  • Other essential documents