Professional Loan: What It Is, Who Can Choose It – Here’s Everything You Need To Know
Professional loans are unsecured loans that are given to professionals such as accountants, corporate secretaries, and doctors who provide professional services for a certain fee. Experts say that these loans are designed for the purpose of expansion, upgrading or other professional needs.
Manish Chaudhari, Head – Digital and Corporate Alliance, Poonawalla Fincorp, says, “Professional loans are provided to certified professionals such as doctors, accountants and corporate secretaries. However, lenders will check eligibility and other evidence as part of the background check before granting a loan to an individual. “
Professional loans are unsecured loans that do not require the borrower to pledge collateral with the lender while borrowing.
What is the difference to a personal loan?
Personal loans, unlike professional loans, are given to people who need money to meet personal needs such as vacation, wedding expenses, home renovation, and sometimes medical needs. Industry experts say that comparatively, personal loans can be chosen by anyone, e.g.
Says Chaudhari, “The main benefit of a professional loan is the fact that no collateral is required from the lender as collateral. In addition, such a product can be used completely digitally without having to physically visit the lender’s branches. “
The interest rate on professional loans is usually between 9.99 percent and 12 percent, depending on the lender. “An important point to keep in mind is the credit limit that can be drawn on professional loans,” added Chaudhari.
Is It Ideal To Get A Professional Loan?
“Like all other hardworking people, professionals strive to grow in their jobs. The capital requirement is needed for a variety of reasons, such as expanding the office, renovating, adding staff, buying new equipment to improve professional efficiency, etc., ”says Chaudhari.
He adds, “In the past, such loans have required them (professionals) to attach certain physical / tangible assets with monetary value to the lender / financial institution in order to obtain loans for their requirements.”
Attractive lower interest rates, flexible loan terms, low processing fees and a fully digitized platform make these loan types an ideal tool to ensure seamless and fast paths to professional development.