Chartered Accountant Loan Fees and Charges

Chartered Accountant Loans provide financial support to help CAs expand or strengthen their practice. However, they come with certain costs that must be clearly understood. These costs are typically known as Chartered Accountant Loan fees and charges and can significantly affect the total repayment amount over time. Being aware of all Chartered Accountant Loan charges such as processing fees, foreclosure penalties, bounce charges, and documentation costs helps you make informed decisions and avoid unexpected financial strain during repayment.

List of Fees and Charges for Chartered Accountant Loan

List of all fees and charges for Charted Accountant Loan

Type	Interest Rate and Charges
Charge type -Small Medium Enterprise (SME) Dropline Over Draft (OD)/ Hybrid Over Draft (OD)	Details
Processing Fees	Up to 3% on sanctioned amount + applicable taxes
Facilitation Fee	For loans with Sanction up to Rs. 25 lakhs - Rs.5,000/- + applicable taxes
Facilitation Fee	For loans with Sanction above Rs. 25 lakhs – Rs.10,000/- + applicable taxes
EMI Dishonour/Bounce Charge*	As shown in the table below
*A bounce charge is a charge for (i) dishonour of any repayment instrument; or (ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate
Loan sanction amount (in INR)	Charges in (in INR)
< ₹ 5 Lakh	₹ 500
₹ 5 Lakh - ₹ 50 Lakh	₹ 1000
> ₹ 50 Lakh – ₹ 2 Crore	₹ 1500
> ₹ 2 Crore	₹ 2000
Late Payment Charge (LPC)/Penal Charge	2% per month on overdue EMI + applicable taxes
	*LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec 2023
	*Taxes applicable on LPC w.e.f. 1st Apr 2024
Part Prepayment Charges:	NIL, Part - prepayment of Loan will not amount to limit reduction.
Annual Maintenance Charges (AMC):	R0.5% + GST if applicable, on the Dropline limit starting on the 13th Instalment and every anniversary thereafter
Annual Maintenance Charges (AMC) (for Hybrid Overdraft)	No upfront charges/Zero charges at the time of disbursement for the Hybrid Limit. 0.5% + GST (if applicable), on the Hybrid Limit as on the 13th Instalment & every anniversary thereafter
Foreclosure Charges:	Foreclosure not allowed till 6 months from Disbursement: After 6 months of disbursement: 5% + GST if applicable on Dropline /Hybrid limit amount on the date of such foreclosure
Foreclosure Charges:	Prior to 6 months of disbursement: 6% + GST if applicable on Dropline/Hybrid limit amount on the date of such foreclosure
Repayment instrument Swap Charges (per swap)	Rs.500/- + applicable taxes (applicable only for branch walk-ins)
Statement or document retrieval charges	Nil for digital copy.
	Charge for paper copy is Rs.1000/- +GST per
	statement/letter/certificate.
Legal fees and charges	Up to Rs.50,000/- + applicable taxes
Recovery charges	Up to Rs.15000/- + applicable taxes
Field collection service charge	Rs.500/- per collection + applicable taxes

Factors that Affect Chartered Accountant Loan Interest Rates

Several factors can impact the Chartered Accountant Loan fees applicable to your loan:

Loan Amount
Larger loan amounts may attract higher processing and documentation fees.
Repayment Tenure
Longer repayment periods may result in higher annual maintenance or interest-related charges.
Credit Score
A strong credit score may help you qualify for lower charges and interest rates.
Repayment Behaviour
Late EMI payments or bounced cheques can increase the overall charges significantly through penalty fees.

Understanding these factors can help you estimate costs more accurately and compare different loan offers.

How to Minimise Chartered Accountant Loan Fees and Charges

Here are practical ways to reduce or avoid common Chartered Accountant Loan charges

Choose the Right Loan Tenure
Select a tenure that balances your EMI affordability and overall interest cost.
Maintain a Strong Credit Score
A high score increases your chance of getting favourable terms, including reduced charges.
Avoid Delays and Bounces
Pay EMIs on time to avoid late fees and bounce charges. Set up e-mandates to ensure timely deductions.
Review the Fine Print
Always read the Key Fact Statement to understand all possible charges and avoid surprises later.
Opt for Digital Services Retrieve documents digitally where possible to avoid additional paper copy fees.

By being proactive, you can keep the total loan cost under control and make the most of your Chartered Accountant Loan.