Professional Loan ,Feature, Benefit ,Eligibility and Documentation
Professionals like doctors, chartered accountants, lawyers, and other professionals can apply for professional loans, a particular type of personal loan. These specialists' unique needs are catered for in the loans, which can be used for a variety of things. For instance, expanding operations, building new facilities, recruiting new staff, buying equipment, etc.
The loan's usage conditions don't simply apply to paying for expenses associated with reaching professional objectives; they also apply to paying for personal expenses like weddings, trips, home renovations, etc.
In comparison to standard personal loans, the professional loan has simple qualifying requirements and a speedy application approval procedure. These loans are additionally provided to qualified candidates at preferred rates and terms*.
Feature and Benefits of Professional Loan
Professional loans are a popular choice for professionals because of the many advantages they offer. The following are some advantages:
1. Larger Loan Amount: To meet your specific company needs, you may be eligible for and qualify for a professional loan of up to Rs 30 lakhs, depending on your profile and other factors.
2. Attractive Interest Rates: One of the most cost-effective financing choices is the personal loan, with rates for professionals starting as low as 11.99% annually.
3. Speedy Approvals: One of the major advantages of professional loans is the speedy in-principle approval you receive for the loan, which gives you the assurance to budget your expenses as necessary.
4. Online Application Process: You may submit an application for a professional loan from the comfort of your home because the procedure is quite similar to that for an online personal loan.
5. No Collateral Needed: Because this type of loan is unsecured, no assets are required to be pledged as collateral in order to obtain it. You only need to meet the requirements for personal loans and have your profile and supporting papers pass the necessary verification processes in accordance with SMFG India Credit's policy.
6. Flexible payback Period: Professional loans come with a flexible payback period that makes it easier for you to budget. A 12- to 60-month repayment period is available.
Eligibility Criteria of Professional Loan
Simple eligibility requirements exist for professional loans:
Those who fall between the 18 to 65 age range.
Those who have already obtained the necessary licences under state or federal law to practise their professions.
A copy of their professional certificate proving they are active in the relevant profession.
Lawyers, engineers, software engineers, journalists, chartered accountants, management consultants, etc., are examples of professionals holding a diploma or degree proving their qualification in certain fields.
This form of loan is available to individuals, partnerships, businesses, and sole proprietorships.
Documents Required for Professional Loan
The following papers must be submitted in order to apply for a professional loan.
Two passport-size photos
The passport and the aadhar card
Copy of a PAN card
For the salary account's most recent year, a bank statement.
Appointment letter and the last three months' worth of pay stubs.
Chain MAP + ATS provide comprehensive property documentation.
Permanent address documentation is also required for renting.
Charges applicable to professional loans
The fees that apply to professional loans are detailed below.
Late payment fee: Borrowers who fail to make timely EMI payments are subject to a late payment fee, which is a fee or penalty.
Prepayment fees: If a borrower pays off their loan early, some banks may impose a fee in addition to the original loan balance.
Statement charges: The cost of printing and sending you printed copies is included in the statement prices.
Processing fee: The total cost that banks charge for processing a loan at one time is known as the processing fee.
Stamp duty: The tax levied by the government on legal documents is known as stamp duty.
Foreclosure fees: Foreclosure fees are the additional sums that the bank charges the borrowers for foreclosing on a loan before its term has run out.
Conclusion
Professional loans are available without any type of collateral to self-employed professionals including doctors, lawyers, chartered accountants, and others for equipment purchases or business expansion. Customers can obtain professional loans from a number of Indian banks. Before obtaining the chosen professional loan, you can examine the loan amount, rate of interest, and repayment period given by several institutions.
