Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Professional Loans

    Professional loans are personal loans for professionals like accountants, dentists, journalists, engineers, solicitors, surveyor, architects, and management consultants etc., who have the proper skills and are qualified to practice their trades. Professional loans can be availed for requirements pertaining to their businesses such as purchase of equipment, construction, business premises, renovating premises, working capital, among others. These loans are meant to help a self-employed professional increase or improve his/her business and overcome liquidity crunch when buying equipment or investing in their own business. These loans are available primarily from government banks, however some private banks also offer professional loans.

    Professional loan eligibility criteria

    The eligibility criteria for professional loans is simple, with borrowers allowed to Apply for Loans in both personal as well as joint capacities.

    • People who are already practising their trades or novices in different professions, with licenses issued by state or central legislations.
    • Group or association of people indulging in one profession given that every member of such a group is licensed and is duly qualified to practice the said profession.
    • Copy of professional certificate denoting that they practice the said profession.
    • Professionals can include people having a diploma/degree who are sufficiently qualified or possess the skills to practice professions such as lawyers, journalists, chartered engineers, chartered accountants, software engineers, management consultants and similar fields.
    • Individuals, joint borrowers, partnership companies and firms and proprietorships can apply for this type of loan.
    • Applicants within the ages of 18 to 65 years can apply for professional loans.

    Documents required to apply for a professional loan

    Professional loan applications typically ask for minimal documentation, mainly pertaining to proofs that the applicant is indeed a self-employed professional in a particular field.

    • Membership certificate copies issued by relevant professional authorities to individuals or individual partners.
    • Firm registration certificate copies for registering with applicable professional authorities, apart from any other similar certifications as specified by the bank or loaning institution.
    • Papers or documents that help in judging the repayment capacity of the borrower, such as expenditure and income statements from 3 fiscal years, balance sheet statements, assessment order copies/tax return copies of individual, firm, partners or guarantors, apart from debt service obligations particulars etc.
    • Recent utility bill showing name and address, or any other similar identity document.

    Professional loan interest rates and charges

    • Interest rates vary between 10% and 18% according to lender.
    • Margin usually ranges from 15% to 25% of the loan amount.
    • The maximum loan amount varies from Rs.10 lakhs to Rs.30 lakhs as per bank's’ policies.
    • Processing fee is generally charged within 0.20% to 1.00% of the loan amount.

    Features and benefits of professional loans

    These loans are packed with features as per individual banks’ policies. Each bank offers its own set of benefits and features, however the outlook for the offerings is more or less the same for all lenders.

    • Hypothecation of the purchased assets or mortgage of premises accepted as primary security.
    • Half the loan amount as collateral security along with one guarantor, preferable spouse of applicant may be required, as per loan documents.
    • Collateral security may not be required for premise acquiring requirements. If required, immovable properties or office equipment will be accepted as collateral by the loaning authority.
    • Some of the accepted collateral securities include LIC/KVP/NSC policies, land and building, bank deposits etc. subject to acceptance by the bank.
    • Personal guarantee of partners/friends/family/title holders of collateral securities etc. may be required as per your lender.
    • In case of loan being used for auto purchase or related usage, loan terms will generally be the same as for auto loans.
    • Maximum repayment tenure is generally 60 months, though some banks also offer 84 months or more repayment period to customers. This tenure includes/excludes up to 6 months moratorium.
    • There is generally no prepayment penalty on professional loans.
    • Business-related travel expenses such as hotel boarding, airfare, seminar fees etc. can be covered with the loan.
    • Self-assembled equipment such as computers are generally not eligible for financing.
    • Payments may be made directly to the dealers/suppliers if the situation so arises. The loan may also be disbursed in instalments after the lender verifies the end use of the finances.
    • Quick loan approval and disbursal.
    • Attractive interest rates and repayment tenures.
    • Easy and simple application process.

    FAQs

    1. What are the purposes covered under financing through professional loans?

      Loans can be sanctioned for purposes such as financing new equipment purchases, construction of new premises or renovation of old premises, working capital needs, business-related travel expenses, honing skills through expansion etc. The basic premise for sanctioning professional loans is that the borrower should be able to justify the loan with respect to his/her trade and direct implications of the loan amount on his/her profession.

    2. Is there a cap on the amount of the loan I can avail?

      Most banks will have a maximum limit of professional loan amount. This amount varies from bank to bank, with the actual amount decided as per the repayment capacity, disposable income and requirement.

    3. Will the end use of the loan amount be monitored by the lender?

      Yes, some lenders may ask you to explain how the loan amount is being used. Some banks may even disburse the loan amount in instalments, with further instalments released subject to satisfactory response from the bank with regards to use of the finances.

    4. What is the repayment tenure for professional loans?

      In general, a professional loan has to be repaid within 5 years of approval and disbursement for fixed rate loans. Floating rate professional loans generally have a repayment tenure of 7 years.

    5. How will the loan amount be disbursed?

      The loan amount can be disbursed as a lump sum by your bank. However, some banks will disburse the amount in instalments after you have shown satisfactory usage of the loan amount to the lender.

    6. Is this a secured or unsecured personal loan?

      Professional loans are Secured Loans wherein you have to submit collateral securities apart from a guarantor to vouch for the loan on your behalf.

    Professional Loans Reviews

    • Axis Bank Personal Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I have applied for Axis Bank Personal Loan through online .The agent clearly explained the process of the loan.The rate of interest was as ok and the processing fee was also ok. while submitting the documents not yet faces any issues .The documentation part was more.The loan amount got on time .The loan amt was sufficient s well .The Overall Service is Good.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I came to know about Bank bazaar through advertisement only.Then i have checked for credit score .Bank bazaar is providing very good service as of now need to avoid calling the same person frequently.Then i have tried to apply for Tata Capital Personal loan .The agent clearly explained the process of the loan and not yet faced any issues as of now.The rate of interest was little bit high and the processing fee was acceptable .The Overall Service is Good .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I have applied for Tata capital Personal Loan.I have not faced any issues. The rate of interest was littile bit high and the processing fee was little bit acceptable.The agent clearly explained the process of the loan.I have not faced any issues till now .The Overall Service is Good and satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "GOOD PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience also i am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good and responsive. by explaining the details of the loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have been using the personal loan with the ICICI since from last few years the loan amount with them was good also the documentation process was simple and it was hassle free to use. The rate of interest with this nominal added on that the service is very good with this bank.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have taken the personal loan with the ICICI BANK the loan amount with this bank what they have offered was satisfactory. The rate of interest with this bank was nominal also i am using it since from last one year and it is good to use.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "ONE STOP SOLUTION"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i have been using it since from last few months and i have a very good experience i have been using it through the mobile application as the application is user friendly also it is convenient to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • IndusInd Bank Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      There is no particular reason for taking the personal loan with the INDUSIND BANK. The loan amount was good and the rate of interest was 10.5% which is nominal when compared to the others. The documentation process was easy and it is comfortable.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through online only .The Bank bazaar is the only online website giving all details about the banking products .I have applied for Tata Capital Personal Loan and not yet faced any issues .The agent clearly explained the process and not yet faced any issues as of now.The Overall Service is Good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Tata capital Personal Loan. No clue on the rate of interest and charges levied by them,The agent clearly explained the process .I have not faced any issues till now .I have cancelled the plan of taking the personal loan since not require the personal loan .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Kotak Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the personal loan with the KOTAK MAHINDRA BANK is i am an existing customer customer with this bank. The loan amount was good also the rate of interest was 11.5% with this loan and the duration is for 48months for repaying he loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience with the Bankbazaar.com. I am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is the best loan that i have taken with the EarlySalary when compared to the other so i have taken this loan. The documentation process was simple and and also i got a loan within a day after the documents. The loan amount was lesser with this loan as they have given also the rate of interest was lesser.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • HDFC Bank Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have applied for the personal loan with the HDFC BANK and have been using it since from last few years and the documentation process was simple and it is easy procedure to get the loan. I got the loan within 10-15 days with this bank. The rate of interest was lesser with 11.5% with 4 years of duration.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i am using it from last one year and i have a good experience and i am using it through the mobile application as well as the website both are easy and user friendly portal to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      The loan amount was lesser along with that it is with lesser duration which is comfortable so taken the personal loan with the EarlySalary. The documentation process was simple and the documents collected at the doorsteps. I got the loan within 8-10days with this loan also, the loan amount is good with 12-13% of rate of interest.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Axis Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the consumer durable loan with the AXIS BANK they have offered with the good loan amount also the documentation process was simple to get the loan. I have taken the MOBILE PHONE with this bank, the duration for repaying the loan is for 9 months.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "CONVENIENT PORTAL"
      0.5 4.0/5 "Great!"
      Bankbazaar.com this is the first time experience as i have been using it through the website the portal is convenient also it is user friendly to access.The customer service is good and also they are good by explaining the details of the loan.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "AVERAGE"
      0.5 4.0/5 "Great!"
      The documentation process was good with the EarlySalary where i have applied for the personal loan. The loan amount was good also the processing fee was nominal. The rate of interest was higher with this loan when compared to the other loans.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Personal Loan Early Salary. The agent clearly explained the process .The rate of interest was nominal and the processing fee was nominal. I have got loan amount on time .The loan amount was sufficient and not yet faced any difficulties.The Overall Service is Good and Satisfactory .
      Was this review helpful? 0
      , gurgaon
      Reviewed on Mar 24, 2019
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