Professional loans are meant for working professionals from specific fields such as doctors, lawyers, and chartered accountants. These are unsecured loans given to professionals who give professional services by charging a fee. Such loans are useful for these professionals to expand, upgrade or use the funding for any other professional requirements they may have.
One of the key benefits of a professional loan is that it does not require any collateral with the lender as security for a certain amount. However, if the amount exceeds a specified limit of the lender, then you may have to pledge collateral.
The interest rate for professional loans usually ranges from 14 per cent to 20 per cent, depending on respective lenders and the eligibility of the professional. As compared to personal loans, the professional loan comes with easy eligibility criteria and a quick loan application approval. Such loans are also offered to certain professionals at preferential rates. Below are some of the benefits of a professional loan.
Professional loans are often offered at attractive interest rates as compared to personal loans. Therefore, you can take a higher amount of loan with attractive interest rates. This is a pocket-friendly option for borrowers as compared to other unsecured loans. If your credit score is 750 and above, you can easily secure the loan with attractive interest rates.
Adhil Shetty, CEO, Bankbazaar.com, explains, “Professional loans are unsecured loans and give easy access to the much-needed funding. Before applying for such loans, you must compare the interest of different lenders, go through terms and conditions of the loan, factor in additional costs and calculate EMIs and interest components before signing the dotted lines of the loan agreement.”
A professional loan can begin with a few lakhs to a crore and above. It depends on your professional profile and eligibility. You can use the professional loan to meet your business requirements.
Minimum Documentation and Easy Approvals
If you are a professional who is looking forward to expanding a business but do not have much time, then you can go for a professional loan. It is easy, with minimum documentation, to apply for a professional loan. Instant disbursement helps you arrange funds when you need them the most.
Online Application Process
You do not need to visit a bank branch to apply for a professional loan. These days, almost all financial institutions give you options to apply for a professional loan online. If you have an existing relationship with the bank, you can quickly apply and get the loan disbursed without too many formalities.
“A professional loan can be applied online without physically visiting the bank branch. You can simply fill in an online form and get the loan disbursed if you meet the eligibility criteria of the lender,” adds Shetty.
Since a personal loan is an unsecured debt, it is like a personal loan. You do not need to pledge any asset to secure the loan. You can just fulfil the personal loan eligibility criteria and submit your documents for verification to get the loan approved.
Professional loans are preferred owing to flexible loan tenures. You can budget and choose the tenure according to your comfort and repayment capacity. The repayment tenure may range between 12 and 84 months.
It would be best to remember that lenders might have different terms and conditions when applying for a professional loan. They may have a minimum salary requirement, work experience, age, credit score etc., before they disburse the loan.
As India celebrates National Doctors Day and Chartered Accountant (CA) Day on the 1st of July every year, to recognize their contribution to individual lives and communities, Poonawalla Fincorp Limited has come out with special loan offers exclusively for these professionals.
These loan offers will be available for a month starting from 1 July 2022 in which Doctors and CAs can apply for professional loans up to Rs 30 lakh.
Commenting on the same, Manish Chaudhari, President and Chief of Staff, Poonawalla Fincorp Ltd, said, “The pandemic has pushed professionals like practicing Doctors and Chartered Accountants to upgrade their infrastructure to meet the demands of their patients, especially digitization of their services to bridge the patient-doctor gap. To enable agility in their growth, online availability of professional loans gives them the fulcrum of not only easy access to credit but also minimal documentations and special rate of interest along with flexibility in repayments. We understand the value of time for such professional customers and therefore have digitized our products lifecycle which respects time and the credit demands of such professionals.”