How Do Professional Loans Score over Regular Personal Loans?

A professional loan is a type of personal loan that only professionals such as chartered accountants, doctors, etc., can get. It is extremely useful for to you if you are a professional as you can have the liberty to customise your loan plans as per your requirements. 

You can opt for personal loans for medical emergencies if you need credit quickly. However, professional loans allow even faster disbursal of the loan amount. Therefore, it is essential to be aware of the benefits of a professional loan.

Benefits of Professional Loans 

Below are some of the benefits of a professional loan:

You can get instant loan approval and disbursal as soon as you complete the application process. This aids you in catering to your immediate requirement for funds to expand your business.

You will not have to collateralise your property, jewellery or any other object. This saves your time for arranging the necessary documents. Additionally, you can stay worry-free about the loss of collateral in case you are unable to repay your loan in time.

You can avail tailor-made plans that would perfectly suit your need. This ensures that you can meet your specific financial requirements. Thus you can make the most out of the credit amount.

You can enjoy the flexibility of selecting loan tenure of up to 60 months as per your requirement. Thus, you can calculate your EMIs and set the repayment tenure accordingly.

However, before proceeding with a professional loan, you must check your eligibility criteria to ensure hassle-free loan approval.

Eligibility Criteria for Professional Loans

Below are some of the criteria that you must qualify to stand eligible for a professional loan:

  • Indian citizenship is mandatory
  • Your age must be between 25 to 65 years
  • You must be a salaried professional in your field

Once you fulfil all the eligibility criteria, you can proceed to apply for a loan by following a few simple steps.

Steps to Apply for Professional Loans

You must follow the steps below to apply for a professional loan:

Step 1: Navigate to the official website of a financial institution.

Step 2: Move to the ‘Personal Loan’ section.

Step 3: Click on ‘Apply’ button.

Step 4: Fill up the application form with your personal and professional details.

Step 5: Select the loan amount and repayment tenure as per your requirement.

Step 6: Upload all the essential documents that are required.

You can keep all the documents ready prior to the loan application so that you can complete the process faster.

Documents Required to Apply for Professional Loans

You must keep the following documents ready to avoid a last-minute rush:

  • Identity proof documents such as Aadhaar card, voter ID card, or PAN card.
  • Address proof documents such as Passport, utility bills, or rental agreements.
  • Your qualification certificates

There are several financial institutions offering professional loans. Hence, you can consider some tips to select the right institution for such loans.

Tips for Choosing the Right Financial Institute for Professional Loans

Below are a few tips that you can consider to select the right financial institution for a loan:

  • Choose a financial institution that disburses the loan amount instantly to meet urgencies.
  • Go for a financial institution that offers 100% transparency and no hidden charges while applying for a professional loan.
  • Select a financial institution that offers paperless professional loans with minimal documentation to lower the chances of errors.
  • Also, you must always choose a financial institution with a good reputation in the market to lower the chances of fraud.
  • Additionally, go for a financial institution that offers customised plans to suit your needs.

There are several uses of a professional loan from which you can increase your earnings and thus benefit immensely in the long term.

Uses of Professional Loan

Some of the uses of a professional loan are:

  • To Purchase Advanced Equipment

You can purchase several advanced equipment to expand your business. This would generate more revenue and aid in business growth.

You can hire more staff to manage your business or clinic. This way, the work pressure would get evenly distributed and become error-free.

  • To Expand Office or Clinic Area

You can open a new branch to expand the area of your office or clinic. This will attract more patients or customers and increase your earnings.

  • To Upgrade Infrastructure

You can upgrade the overall infrastructure of your business. This is possible as a loan increases the inflow of working capital.

  • To Undertake Another Professional Course

You can also undertake a course related to your profession that can upgrade your skills. This would, in turn, help you to generate more money from your profession.

Keeping in mind the benefits of a professional loan over a regular personal loan, you must opt for one once you fulfill the eligibility criteria. Opting for a professional loan over personal loan for medical emergencies and other financial urgencies can prove to be a wise decision as you can get much faster loan approval and disbursal.