The total loan value in India increased by a year-on-year rate of 6.20% for two weeks ending 5th June 2020.
Thanks to increasing penetration of the lending market, individuals across the country have better access to loans and advances, including professionals like CAs, doctors and engineers.
As these professionals are the pillars of India’s economic growth, the availability of loans to suit the needs of such individuals can only boost the country’s prosperity.
However, the cost of these loans still remains a deterring factor to availing these advances, whereby interest accrual represents a considerable chunk.
For example, a chartered accountant may first check the CA loan interest rate to assess the total cost to be incurred until the loan tenor completion.
Hence, it becomes essential to check and compare the interest terms at which a financial institution is ready to lend a professional loan. Following is a guide on how to compare the interest terms offered.
How to check and compare interest rates on professional loans?
You can compare the interest rate and terms of your professional loan based on these following factors.
- Type of loan
Financial institutions provide professional loans of different types, to allow professionals to meet their varying funding requirements with ease. Thus the CA loan interest rate can differ for a chartered accountant depending on the type of loan he/she selects.
Same is the case for doctor loan interest rate or engineer loan interest rate. The primary types of loans available for these professionals include.
- Personal loans for professionals
- Business loans for professionals
- Loans against the property for professionals
- Home loans for professionals
These loans can be segregated into secured and unsecured loans, with the first two belonging to the unsecured category and the last two to the secured category.
Thus, while considering a doctor loan or a CA loan interest rate, a professional must check which one of these two aforementioned categories it belongs to. Interest rates for secured advances like home loans and loans against property are usually on the lower end because the collateral available reduces the lender’s risk.
On the other hand, unsecured professional loans come with a higher interest rate margin due to the absence of collateral. However, other attractive features accompanying personal and business loans make up for this downside.
- Type of interest rate
Lenders levy interest rates of two types –
- A fixed-rate of interest
- Floating rate of interest
You can thus compare the pros and cons of these two rate types by considering the market trends and regulatory changes made by the Reserve Bank of India. Fixed rates remain constant throughout the loan tenor while floating rates change with market trends.
- Lender comparison
Comparison of lenders plays a key role in arriving at the best CA loan or doctor loan interest rate. You can conduct an extensive market analysis of the financial institutions offering professionals loans like loans for doctors and chartered accountants, to arrive at the most affordable interest terms.
Alternatively, you can also utilise an online EMI calculator that helps you compare the interest accrual for the loan amount and tenor selected, thus helping in loan selection.
NBFCs like Bajaj Finserv offer these tools on their official website to help with interest comparison. You can also utilise this tool to assess a suitable loan amount and tenor that would keep your EMIs affordable.
The lender also brings pre-approved offers to make the process of financing hassle-free and convenient. You can avail these offers on personal loans and business loans, along with a range of financial products. Provide only your name and contact details to check your pre-approved offer.
As for a professional loan, once you have considered all factors, you can make an informed decision regarding the best CA loan interest rate or the rate for a doctor loan. Make sure to compare other charges as well, and fulfil the eligibility requirement for a hassle-free approval.