Leading banks are catering to the
need of self employed professionals like Doctors, Chartered accountants,
Interior Decorators, Architects, Company Secretary etc. by offering them
professional loans at lucrative rates. Manufacturing/ trading/processing
units are not eligible for such a loan. These loans are unsecured in
nature.
Maximum Amount of Professional Loan Offered:
The amount of
loan varies in banks, depending on the financial standing of the
customer, his repayment capacity, tenure of the loan etc. Banks
generally provide loan from Rs.25000 to Rs.25 lakh. The repayment can be
done through Equated Monthly Installments or EMI. Tangible collateral
security has to be provided in certain cases.
Interest Charged by Banks on Professional Loan:
Interest is
charged according to the prime lending rate. It can be taken by clients
on a fixed or fluctuating basis. Interest can be discounted depending on
the customer's profile and his financial capacity. The interest is
generally calculated on the diminishing balance.
Process of Professional Loan Approval:
Professionals can apply
for the loan by visiting the bank's premises or applying online. Various
banks charge a nominal processing fee which is around 1% of the loan
amount.
Documents Required for approval of Professional Loan:
- Proof of Identity (Passport Copy/ Voters ID card/ Driving
License).
- Address Proof (Ration card Tel/electricity Bill/ Passport )
- Bank Statements(latest 6 months bank statement /passbook)
- Latest ITR along with computation of income, B/S & P&L
a/c for the last 2 yrs. certified by a CA
- Qualification proof of the highest professional degree
- Proof of continuation (Trade license /Establishment /Sales Tax
certificate)
- Other Mandatory Documents(Sole Proprietorship. Declaration. Or
Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA &
Board resolution.)
List of Leading Banks offering Professional Loans:
List of Leading Banks Offering Auto Loans:
