Leading banks are catering to the need of self employed professionals like Doctors, Chartered accountants, Interior Decorators, Architects, Company Secretary etc. by offering them professional loans at lucrative rates. Manufacturing/ trading/processing units are not eligible for such a loan. These loans are unsecured in nature.
The amount of loan varies in banks, depending on the financial standing of the customer, his repayment capacity, tenure of the loan etc. Banks generally provide loan from Rs.25000 to Rs.25 lakh. The repayment can be done through Equated Monthly Installments or EMI. Tangible collateral security has to be provided in certain cases.
Interest is charged according to the prime lending rate. It can be taken by clients on a fixed or fluctuating basis. Interest can be discounted depending on the customer's profile and his financial capacity. The interest is generally calculated on the diminishing balance.
Professionals can apply for the loan by visiting the bank's premises or applying online. Various banks charge a nominal processing fee which is around 1% of the loan amount.
Bank of Baroda - Baroda Professional Loan
HDFC Bank - Self employed (Professionals) Scheme
Corporation Bank - Corp Professional
*Terms and conditions may vary from bank to bank.