Know about the Finance and Investments Terms

Chartered accountants are the backbone of a sound financial entity. With time, various experienced lenders have started offering custom suite finance for these professionals. Its suite consists of personal loan, home loan, business loan and loan against property to manage an array of financial needs. 

Understanding on what grounds the loan can be provided can save you from a lot of disappointment and even get your application approved, in time - 

• Debt-to-income-ratio: while reviewing your loan application lenders take into account your debt-to-income ratio. Where, the ratio must be 43% as the maximum debt-to-income ratio you can have. Additionally, the 36% rule mentions that your DTI should never pass 36%. 

• Credit score: all you need to do is to pull out your credit report to know your rating. You can do so online without the help of your financial advisor. Usually, a good score of 750+ or more is needed to avail a preferable loan amount. With a good score you can even avail a loan on negotiated terms with your lender. However, it may be noted that a bad or poor score can always be improved with time. By discipling the payment habit and clearing off old dues, and by not applying for additional credit cards the score can be improved easily. 

• Knowing your affordability: while, applying for the loan it is good to get in touch with lender’s Relationship Manager to discuss loan terms. This will also give you an idea as to how much CA loan you can borrow and manage to pay off as per the decided time. Besides, the interest rate and tenure of the loan must also be taken into consideration to ensure that you can manage it without affecting your routine expenses. 

Also Read: WHAT IS THE EASIEST WAY TO GET A CA LOAN?