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Professional Loans

Professional Loan Highlights

Last Updated 27th Nov 2021

  • Professional loans are loans for self-employed professionals.
  • Such loans can be availed by doctors, chartered accountants, lawyers, and engineers among others.
  • The interest rate for professional loan- doctor, CA and engineer is different.
  • To avail of a professional loan, one must be above 21 years of age, and if he/she has been already practising, they should have an experience of at least three years.
  • Tax exemption can be availed under a professional loan.
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Loan for Professionals

Professional people's financial needs are a bit different from other people and so to serve their financial needs, banks, and Non-Banking Financing Companies (NBFCs) offer professional loans. The professional loan is a credit line facility offered to working professionals like doctors, chartered accountants, lawyers, engineers, lawyers, etc. This loan aims to help such people grow and expand their business. Most often, the professional loan is interchanged with a business loan but these two are different things. A business loan is offered mainly to business people and entrepreneurs, whereas a professional loan is a tailor made loan as per the professionals' need and eligibility.

Eligibility Criteria for Professional Loan

To avail of a professional loan, one has to meet a specific eligibility criteria, which varies from bank to bank. The general eligibility criteria, however is listed as follows:-

  • A borrower should be of minimum 21 years and maximum of 65.
  • A borrower should be an Indian resident.
  • A borrower must demonstrate possession of a professional degree or diploma in their respective field.
  • Must have minimum experience of 4-5 years.
  • If the borrower is an existing professional, then he/she should have a minimum income of ₹ 1 Lakh per annum.

Documents Required for Professional Loan

To avail of the loan you will also be required to submit the following documents:-

  • Education degrees like professional degrees or diploma degree
  • Identity proof such as Driving license, passport, voter id, aadhar card
  • Address proof such as Driving license, telephone bill or electricity (of past three months)
  • Bank statement of the last six months
  • If existing business then profit and loss statement audited by CA
  • Proof of operations of the business- Trade license, tax returns

Interest rates, Fee & Charges

Interest rate and other charges for every professional loan are different, and it also varies from bank to bank. Some of the top banks offer the lowest interest rate on professional loans:-

Bank NameInterest RateProcessing Fees
ICICI Bank 10.50% - 10.50% Rs. 1999
Yes Bank 10.50% - 10.50% Rs. 1499
HDFC Bank 10.85% - 10.85% Rs. 499
Bank of Baroda 11.05% - 14.10% Upto 2%, Min Rs. 1,000 and Max Rs. 10,000
Corporation Bank 11.20% - 15.00% Upto 0.75%, Min Rs. 5,000

Types of professional loans

Professional loans are customised for everyone's need, so there is a different loan for every professional:-

  • Loans for doctors: Doctor loans are offered to doctors for up to ₹ 2 Cr. Processing time in such loans is quick; the loan amount can get disbursed in the borrower's account within 24 hours, if all the documents are correct. Banks also offer easy EMI and flexible repayment options.
  • Loans for Engineers: Engineers who want to expand their business, hire more workforce, buy or rent premises or any other reason. An engineer can get a loan for up to ₹ 3.50 Cr. The loan can be dispersed into the borrower's account within 24 hours.
  • Loans for CA: Chartered Accountants who want to meet their working capital should avail loans for CA. The loan amount for CA varies from bank to bank, and it is dependent on various factors like the size of the business, purpose of the loan, and borrowers profile.

Professional loan vs Personal Loan

Let's understand the difference between professional and personal loan:-

Professional loanPersonal loan
Professional loans are also easy to apply but requires document verificationPersonal loans are easy to apply because it has the easiest eligibility criteria
A borrower has to submit various documents like identity proof, income proof, address proof and othersMinimum documentation is required. A borrower only needs to submit identity proof and address proof
Professional loan had to be used for the purpose for which it is takenPersonal loans can be used for any purpose, there is no end usage restriction
Professional loans have lower rate of interest Banks and NBFC offer higher rate of interest
Tax exemption can be availedTax exemption is not available

Features and Benefits

Features and benefits of the professional loan may be different for every bank, the latest features of this loan are:-

  • The minimum loan amount which a borrower can avail is ₹ 1 Lakh, and it goes up to ₹ 2 Cr
  • The requirement of collateral is not mandatory
  • The tenure can extend up to 5 years
  • The simple procedure is involved, and the loan can get approved in two working days
  • Flexible repayment is available
  • There is no end usage restriction on professional loan

FAQs

How much loan can I get for MBBS?

For MBBS you must take an education loan. If you wish to pursue MBBS from India, you can get a loan of ₹ 15 Lakh and ₹ 25 Lakh if you want to go abroad for your MBBS.

What is a professional and career development loan?

Professional loans are the loans available by professionals like CA, doctor or engineers to expand their business, rent or buy premises or hire a workforce. Whereas, a career development loan is a loan which helps a borrower in career development.

How can I get a doctor loan?

Doctors loans are professional loans that are specially customised for doctors. A doctor can avail of the loan by visiting a bank or NBFC, or you can visit MyLoanCare to apply for a doctor's loan.

What is a loan to a professional?

Loan to professional is a term that is used in exchange for professional loans. A professional loan is a loan facility granted to working professionals, like doctors, engineers, CAs or architects, to expand their business.


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