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How Loan Tenure Impacts Repayment of Your Chartered Accountant Loan?

The loan tenure, that is the total time period for which the loan is availed, can avail the repayment of the loan amount in a significant manner. CA loans, as well as other loans, work more or less on the same principal. The longer the loan tenure, the smaller is the amount of the EMIs. This is because the person has a longer time span to repay the loan. His loan amount can be broken up into smaller parts and he would be less burdened with the EMIs with the low amount. In the same manner, the shorter the tenure, the larger would be the EMI amount.
However, paying the loan for a longer period of time would also mean that the CA would eventually pay up a significant amount more in the long run, when the CA loan interest rates are added up. Hence, someone who has long term plans and does not want to spend so much just towards paying interests might want to consider opting for a shorter tenure and repay the loan as fast as possible. This would mean that the EMIs would be of larger denomination but for a CA who is absolutely sure of his monthly income and has an income- based return plan in place, this would not be a problem. On the other hand, there is also the option of pre- payment and most creditors like banks and NBFCs have prepayment option in place.

A pre payment on a loan can be done when one is paying at least three EMIs in advance. This would help in bringing down the principal amount and the interest on the balance amount would decrease with it. There is also the option of floating and fixed interest to be taken into account. Bajaj Finserv Loan for Chartered Accountants takes all these factors into accounts and the creditors talks to the CA personally to give them a lowdown about the various repayment options they have before them when they apply for the loan and depending on the age of the CA and his monthly income, the perfect tenure is decided upon. It goes without saying that although a CA can apply for the loan between the ages of 25 and 65, the latter would have to pay a much higher rate of interest and would also automatically have a shorter tenure to repay the loan.

A CA would of course, have to pass the CA loan eligibility criteria to avail the loan in the first place. However, it is still a good idea to enquire about the loan options from various banks and compare their terms, tenure and interest rates before one starts to make the applications. This would save a lot of time meeting the creditors who have less than agreeable terms and one would be able to concentrate on banks that are most likely to have the best terms and conditions, befitting a CA about to open a new firm of his own.
How Loan Tenure Impacts Repayment of Your Chartered Accountant Loan? How Loan Tenure Impacts Repayment of Your Chartered Accountant Loan? Reviewed by Lokesh kumar on 12:12 PM Rating: 5