Smart things to know about loans for professionals

1. Banks and NBFCs both offer special loans for self-employed or salaried professionals like doctors, chartered accountants, architects and company secretaries, who are considered professionals.

2. Professional loans fall in the category of unsecured loans as there is no collateral involved.

3. As the default ratio is very low in this segment, professional loans have lower rates, higher loan amounts and easier processing facilities.

4. The loan tenor ranges from 1 to 5 years and the loan amount can go up to Rs. 30 lakh or even higher, depending on the current income and repaying capacity.

5. The degree certificate and in most cases a minimum post qualification experience is required to avail of this loan.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)