PROFESSIONAL LOANS

Overview

This facility is specifically made available for Professional Consultants such as Doctors, Architects, Chartered Accountants, & Company Secretaries practicing independently. This facility allows such professionals to plan accordingly on their requirements specifically required while they provide consultancy solutions to the people around them. Funding could be utilized for the Purchase of Medical Equipment, renovation of the workspace (Hospitals / Clinics/Office Spaces), Higher Studies, Emergency Medical Requirement within the family. This facility provided does not need any kind of Collateral or neither it requires any kind of guarantee from the third party. The customer based on his professional degree could be classified as a Professional Consultant & accordingly the criteria and the subsequent norms would be applicable. This kind of funding is quite similar to Business Loans or Personal Loans where the fundraising happens for a shorter term.

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Features

Product Overview

Unsecured Collateral free Loans for a shorter-term period without any kind of third-party guarantee.

Quick Processing and Hassle-free loans with minimum documentation requirements.

Criteria

Applicant / Entity could apply for a Loan on his capacity considering the promoter as a co-applicant for the said proposal.

Quantum

Maximum Tenure of 5 Years depending on the other parameters as well as. Restricted to Bank’s Policies & other criteria norms.

CIBIL Score

Financial Institutions & Bank do check the Credit Report which is downloaded from the Credit Bureau of India Ltd website to understand the applicant’s & co-applicants past repayment history and also to understand the existing Loan obligations serviced by the Individual. Based on this History and Loan Obligations the Credit of the Financial Institutions finally appraises the said proposal for Final Sanctioning. Based on the Cibil score the final home loan interest rates could also vary.

Professional Loan Eligibility Norms

Loan Sanction Criteria could vary based on the Profile of the Customer as well as the Nature of the Professional.

For Professionals, the Calculations are Normally done based on different methods which Include Income declared as per the Latest Financial returns filled, Bank Statements, based on the Degree Certificate as well as Cibil Scoring and the Number of Years in Current Practise. It is normally restricted to Fixed Obligation to Income Ratio Norms (FOIR). But still, the conditions and other policy norms for Loan Calculations looks seem quite flexible.

Rate of Interest

Interest Rates vary based on the Loan Amount, Profile of the Customer, Cibil Score, and it also depends on various other Parameters such as Eligibility Criteria under which the Proposal has been sanctioned.

Lesser the Interest Rate lesser would be the EMI charged which could, in turn, Increase the Loan Amount proportion.

Home Loan Processing Fees & Other Charges

Apart from Professional Loan Interest, Banks and other Financial Institutions do charge Fixed Nominal Charges which normally need to be paid at the time of Loan Processing. While making your comparisons make sure you also consider these charges. Below are details of these charges which are normally paid at the time of Loan Disbursement –

Processing Fees

While Processing your Loan Application Bank normally charges you a Processing Fees this is considered to be the charges for the processing of your Loan documents and overall cost which Includes the Sales and Back-end process as well as documentation verification and other credit checks. These charges are likely to vary with different Banks. For Professionals, it varies from 0.5% to 2% based on the Loan Amount as well as Banks or Financial Institutions. It would also vary based on the Profile of the Consultant and his credentials

Loan Insurance

To Secure the Loan Proposal Bank does provide Loan Cover to Secure the Loan. The cover could be of Different types to reduce the premium amount such as Accidental death Cover or Complete Loan Cover due to natural death. The Insurance amount is added to the Loan Amount which indirectly increases the EMI amount.

Franking Charges & Notice of Intimation

While Executing the Loan Agreement between the Financial Institutions and Customer. The State Government normally charges a Nominal Stamp Duty which the Customer needs to bear along with the Legal Fees during the execution of the Loan Agreement.

Post Loan Disbursement

Customer needs to be aware of the below charges which could be charged: –
1) Cheque / ECS Dishonour Charges
2) Penal Interest Charges
3) Duplicate Loan Statement & Other Related Documents

Preclosing Charges

For Professional Loans the Pre-closing Charges may vary from 2%- 5% or maybe on the other criteria which could vary within the Bank or Financial Institutions. For Professional Consultant special approvals could be taken at the time of Loan Sanctioning which could be taken on an exceptional basis.

Professional Loan Documentation Details

Below Documents need to be submitted along with your Loan Application:

Documentations:
  1. KYC Documents
  2. Income Documents
  3. Bank Statements
  4. Existing Loan Details
  5. Degree Certificate
  6. Registration Certificate
Above List could vary based on the Banks and other Financial Institutions and solely depend on the Final credit approval provided any additional documentations required for final credit assessment.

Tenure

As mentioned earlier the maximum tenure an Individual can apply is for 5 years. It is always subject to Credit Norms the loan terms would be finalized and could be reduced on the sole discretion of the Credit.

Balance Transfer Option

In the case of Existing Professional Loans, we do have an option of transferring the Loan to Another Financier and we could also enhance the amount as a Top-up which could be utilized for fulfilling your requirements. This product could facilitate in reducing your existing ROI of the present loan as well.

Types of Professional Loan

Professional Loan Types: Some Banks and Financial Institutions do differentiate Professional Loans into two types: –

  1. Secured Professional Loan: It could be by pledging your existing Fixed or Movable assets such as your Residential / Commercial Property, Gold, Car, Fixed Deposit, or any other type of Inventories which could be a kind of primary security.
  2. Unsecured Professional Loans: – This would be purely based on without considering any kind of collateral charges or any kind of guarantee.

Apart from this Banks and other Financial Institutions have come up with Customized Professional Loan solutions which could be as below: –

  1. Professional Loan in the form of Unsecured Over Draft: – Loan Sanctioned would be restricted to a certain Loan Limit wherein the customer can utilize as an when required and repay the amount based on his availability. This would enable the customer to pay interest as per the utilization of funds.
  2. Facility against Card Receivables: – This facility is very much available for customers having retail Outlets wherein most of the Professional transactions happen via Card Payments. Customers can repay on Daily/ weekly/Fortnightly options based on the card settlement done quite flexible for such customers.

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