Getting any type of a loan depends on various factors, with your credit rating being one of the major ones. As it is a measure of your loan repayment ability, lenders usually require a minimum credit score to even consider your loan application. However, there are certain lenders that look more at the strength of your business, and your current repayment ability, than your credit score. Therefore, it is still possible to get a loan even with a bad credit score, though it may be difficult and will probably cost more.

When it comes to loans for chartered accountants, there are other eligibility criteria to meet, along with the credit score. For example, you should be a self-employed CA with at least 4 years from your certificate of practice (CoP) to your date of application, to avail a loan for chartered accountants from the NBFC Bajaj Finserv. If you are a CA with a poor credit score, don’t worry; here are a few steps you can take to Apply a CA loan:

1.) Rebuild Your Credit
If you have a really poor credit score, you can take some time and build it up before applying for your chartered accountant loan. You can do this by first separating your personal and business credit, and then ensuring that you pay all your bills on or before time. Additionally, talk to a financial advisor and get advice on what other options you have to improve your credit score.

2.) Discover Your Lender Options
If you require a CA loan on an urgent basis and cannot wait to rebuild your score, research well on the bad credit lender options you have. While banks will be less likely to lend to you if you have a bad credit score, NBFCs do not have such a restriction.

NBFCs like Bajaj Finserv are much more flexible when it comes to lending to borrowers with lower credit scores. As long as you can provide a solid business plan that projects a positive cash flow and shows your potential to repay the loan, you will receive the money quickly. Bajaj Finserv’s Loan for Chartered Accountants, for example, offers an amount of up to Rs. 35 lakh, with a flexi loan facility and a quick disbursement period of just 24 hours.

3.) Enlist A Co-Signer
You can enlist help from a partner or a friend with an excellent credit score to avail a CA loan, by getting them to co-sign it. Their excellent credit history would then offset your bad one and increase your chances of availing the loan. Remember though that not all lenders accept a co-signer; so, choose your lender accordingly.

Following these steps can help you avail that loan for chartered accountants with a low credit score. However with a bad credit score, the interest rate on your CA loan may be high. You can still discuss and negotiate with your lender about the rates though. Lastly, having a proper repayment plan in place, before applying, greatly increases your chances of getting approved.

Author's Bio: 

Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Gurgaon, Arwind Sharma is a name to reckon with when it comes to financial management for big brands.