With several credit options available in the Indian financial market, chartered accountants today can easily avail a CA loan to fund both personal and professional financial requirements. Tailored credits like personal loans for CAs, business loans for CAs, home loans for CAs, and more, can be availed easily with minimal documents.
A chartered accountant, being a financial specialist and expert tax planner, is also responsible for the management of his/her personal finances. With an exclusive suite of Chartered Accountant loans available in the market, they can cater to their specific needs with ease while reaping the maximum benefits.
Ways to reap maximum benefit from a CA loan:
1- Use it for debt consolidation
If you have already taken other credits that attract a higher rate of interest, like a credit card or any other loan, you can use a loan for a chartered accountant to consolidate your debts.
Since you can get a chartered accountant loan with attractive CA loan interest rate, paying off your debts with lower rates will reduce your debt burden. It consolidates them into one, and you now need to pay EMIs only for one loan.
A lower EMI amount also means increased repayment capability as your debt-to-income ratio comes down. It also affects your credit history positively.
2- Foreclose or part-prepay to save on interest payments
If you have already availed a chartered accountant loan, you can opt to part-prepay at any time before the tenor ends with a lump sum amount. Since part-prepayment reduces the principal amount, your debt burden reduces too. Also, interest will not be calculated on the part-prepaid amount, thus reducing your EMIs for the remaining tenor.
You can also save considerably on interest payment by paying off the entire outstanding amount along with nominal foreclosure charges. Closing a professional loan before the tenor also increases your credit score considerably.
3- Get tax benefits on principal and interest repayment
If you have availed a home loan for chartered accountant, you can enjoy tax benefits on the principal and interest payments. Get benefits of up to Rs. 1.5 Lakh under Section 80(C) of the Income Tax Act for repayment of principal and up to Rs. 2 Lakh under Section 24(B) of the Income Tax Act for principal repayment.
The mentioned amount will be exempted from your taxable income every year until the completion of the loan tenor. You can also get these tax benefits on CA loan against the property if you have utilised it to purchase a residential property.
4- Use flexi loan facility
Utilise the Flexi Loan facility from lenders to meet any unforeseen debt. Withdraw the required funds as and when needed from a pre-sanctioned loan amount and prepay when you have available funds in a lump sum. It is a beneficial option to utilise as interest is charged only on the withdrawn amount and not on the entire principal. There are many additional other features make a Flexi Loan for chartered accountants a winner.
5- Utilise balance transfer facility
Lenders also offer balance transfer facility on Home Loan for Chartered Accountants. Through this facility, you can transfer the balance loan amount from another lender to any other at a lower rate of interest. It is also one of the ways to enjoy the best CA loan interest rate on offer.
It makes loans more affordable and also gives you an option to avail a top-up amount over and above the existing loan amount. You can use this amount to meet multiple personal or professional expenditures.
What’s common among these tips is that they focus on reducing your debts, thus helping you manage your finances smoothly. Use these smart ways to maximise the benefits that a CA loan brings.