Professional Loan Eligibility Criteria Of Top NBFCs

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Introduction: 

If you are a self-employed professional, you would like to invest the time and hard work to sharpen your skills and gear your career to the next level. However, in most cases, in addition to hard work and time, you also need money to grow your career as a working professional. 

A Professional Loan can be beneficial in such a situation. Banks / NBFCs evaluate your Professional Loan eligibility based on your credit score, age, income, employment, and employer profile. 

Financial institutions offer Professional Loans for medical professionals, chartered accountants, and architects to expand their businesses and meet their functional financial needs. 

Meaning of NBFC: 

NBFC is a Non-Banking Financial Company registered under the Companies Act, 1956. NBFCs help meet MSME fund requirements by providing them with loans. They should not be disturbed by the banks. NBFCs cannot transfer money and do not accept draft requirements and checks, unlike banks. 

Categories of Professional Loans: 

Professional Loans can be broadly divided into the following two categories: 

  1. Loans for medical professionals: Doctors can quickly get Professional Loans of up to Rs 45 lakhs with flexible repayment options and low EMI. A Doctor’s Loan is approved immediately with minimal difficulty. Doctor’s Loan processing also does not require a lot of paperwork. 
  2. Loans for chartered accountants: CAs can obtain Professional Loans to meet their operational needs and various other purposes, including business expansion, rent and salary, purchasing equipment, cash flow management, and more. 

Professional Loans eligibility criterion: 

  1. People between 18 to 65 years
  2. People who already practice their profession as per licenses issued by the government or central law 
  3. A copy of a professional certificate stating that they practice the said professions 
  4. Professionals with diplomas/certificates confirming their qualifications on behalf of lawyers, engineers, application engineers, journalists, chartered accountants, consultants, etc
  5. Individuals, corporations, firms, and landowners can also apply for this type of loan. 

The eligibility criterion for NBFC Professional Loans: 

The eligibility requirements for an NBFC Business Loan are as follows: 

  1. The business should operate for 2-3 years, at least. 
  2. The business should have had a minimum profit of INR 10 lakhs last year. 
  3. The previous year’s ITR should be more than INR 2.5 lakhs.
  4. The business owner’s residence should not be a small business premise. 
  5. The small business owner should either own the business premises or house. 

Documents required for applying for a Professional Loan: 

  1. There is minimal need for Professional Loan documents. You will need to submit certain proofs related to your profession. 
  2. A membership certificate issued by the relevant competent authorities is required. 
  3. For the last three years, income statements audited financial statements or income tax returns for the past three years. 

Documents required for NBFC Professional Loan: 

This is one of the enormous benefits of NBFC Business Loans. NBFCs usually require minimal documents for a Business Loan to be approved. Therefore, a small business owner does not have to spend his time collecting dozens of papers. 

The owner of a small business must submit the following documents:

  1. Address proof and proof of residence 
  2. PAN card
  3. ITR of 2-3 years ago
  4. Bank statement 12 months ago

Purpose of a Professional Loan: 

Buying an office or a new place to run your business: 

One of the most important reasons for obtaining Professional Loans is to purchase real estate or land to expand business activities. It is possible to start your career with a few employees and equipment on a small scale. However, as your business and clients grow, you may want a more formal setup for your professional activities. 

Equipment purchase:

In any business, especially in engineering or something that involves mechanics, you must have the latest technology. It can also be new software if the company is in IT. This not only ensures efficiency but also provides scale performance. The latest high-tech equipment speeds up performance, improves efficiency, and reduces switching time. These resources can be expensive and require strong fund support. 

Operating costs: 

Liquidity is the backbone of a business, especially if the business is small or medium-sized. To ensure efficiency and availability of funds to meet daily needs, one must have sufficient funds to operate. 

Performing vocational courses: 

It is undoubtedly an age of cut-throat competition, and you need to update yourself regularly to stay ahead of the game. A few professional courses teach new and better ways to run your business. However, since these are advanced technology courses, they are usually more expensive. Having Professional Loan eligibility can be helpful for you to finance any training needed for you or your employees. 

Conclusion: 

When you start your own business, you carry a lot of dreams and a grand vision. The idea is to see your business grow, have better customers, and make yourself a brand as a professional. But sometimes, these terms seem to get lost in the financial crisis. Expansion of business requires sufficient funding and sound financial planning. Several institutions provide Professional Loans for medical professionals, CA, photographers, writers, and management consultants to expand their services, make them profitable, and help them succeed in their respective careers.  Learn more about News

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