Education Loan for CA Students: Options, Eligibility & Process

Do you have an interest in mathematics and a keen love for spreadsheets? Do you think about financial strategies and how companies can manage their accounts more efficiently? If so, Chartered Accountancy (CA) might be the right career choice for you.

Every business needs a skilled and sharp chartered accountant who can steer the company through the most complex and intricate accounting and financial situations. CA is a highly paid profession. However, becoming a chartered accountant is a long and expensive process. 

In this article, we explore the steps to becoming a CA and how you can make the process less stressful financially with the help of an education loan for chartered accountant courses.

What is a Chartered Accountant (CA) Course?

A chartered accountant is an accounting professional who is trained to take on specific responsibilities and advanced tasks related to accounting within a business organisation. In India, chartered accountancy training and certification is regulated by the Institute of Chartered Accountants of India (ICAI). To become a chartered accountant, you must complete a 4-year course in the ICAI.

The four-year CA course consists of three levels:

1. Foundation course

The foundation course is the first step towards becoming a CA. This course teaches aspirants basic accounting principles, logical reasoning, mathematical reasoning, banking principles and business laws. The study period mandated by the ICAI for this course is 4 months followed by an examination and a 2 month waiting period for the results.

2. Intermediate course

The intermediate course can be taken up upon completion of the foundation course. CA Intermediate consists of two groups of subjects.

i. Group I covers advanced accounting, corporate laws and taxation.

ii. Group II covers cost and management accounting, auditing and ethics, and financial and strategic management.

The intermediate course has an 8-month study period followed by examinations and a 2-month waiting period for results.

3. Final course

The final course is the last step in your CA journey. This course also consists of two groups and has a 6 month study period. Each group has three papers.

Group I

i. Financial reporting

ii. Advanced financial management

iii. Advanced auditing, assurance and professional ethics

Group II

iv. Direct tax and international taxation

v. Indirect tax laws

vi. Integrated business solutions

Apart from these, CA students are required to complete a 2 year articleship training, an IT training program and a soft skills training program along with their CA courses.

In total, you can expect to complete your CA training in about 4 years.

CA Course Fee Structure and Typical Expenses

Becoming a chartered accountant is a long and arduous process. It requires a lot of hard work, commitment and, of course, finances. 

Here is a course-wise breakdown of CA training fees:

1. Foundation Course: Rs 9200 + Rs 600 (optional for journal subscriptions)

2. Intermediate Course: Rs 18,000 if you choose to appear for exams for both groups at the same time or Rs 13,000 per group if you attend exams for each group separately. Along with this, there is a student activity fee of Rs. 2000.

3. Final Course: The registration fee is Rs 22,000. The exam is Rs 3,300 for both groups and Rs 1800 for a single group.

4. Articleship registration fee: Rs. 2000

5. IT Training Program: Rs 7,500

6. Soft Skills Training Program: Rs 7000

If you choose to join a coaching institute for additional training, you must factor in the fees for that as well.

Why Take an Education Loan for CA Students in India?

For your CA education, you can expect to pay a minimum of Rs 71000. If you choose to go through a coaching program or need additional attempts to clear your exams, this amount will be even higher. Paying the CA training fees out of pocket may put a strain on your finances. In this case, an educational loan is a helpful tool that can provide you with the necessary funds to complete your education.

Given that CAs are highly paid professionals, the loan you take towards your education can be considered an investment in your future. With the right loan, you can complete your studies with zero worries about the cost of education.

Types of Education Loans Available for CA Students

Here are commonly available types of education loans for CA students:

1. Unsecured Education Loan
An unsecured education loan does not require you to pledge any asset such as property or fixed deposits. This option is suitable for CA students with moderate funding needs for course fees, coaching, books and living expenses. Approval mainly depends on the co-applicant’s income, credit profile and overall eligibility. These loans are quicker to process but may carry slightly higher interest rates.

2. Secured Education Loan
A secured education loan requires collateral such as residential or commercial property. It is ideal for CA students who need a higher loan amount to cover extended coaching or related expenses. Secured loans usually offer lower interest rates and longer repayment tenures, as the risk for the lender is reduced.

A typical education loan for a chartered accountant covers course fees, living costs, books, travel and exam fees for the CA course. These options help CA students manage fees and expenses during their training and exams, so you can focus on qualifying without financial stress. 

Eligibility Criteria for CA Education Loans in India

Tata Capital has the below eligibility criteria in place:

• Nationality: Applicant must be an Indian citizen
• Age: Between 18 and 35 years at the time of application
• Educational Qualification: Must have completed 10+2 or a diploma
• Course Type: Admission to graduation/postgraduate degree or a PG diploma in professional education (including CA)
• Institution: Course should be pursued at a listed, recognised, and accredited institute in India or abroad
• Basis for Loan Sanction:
  • Pre-admission loan sanction (in eligible cases)
  • Valid entrance exam scores such as CA Foundation / GRE / GMAT (if applicable)
  • 12th/HSC academic results
  • Confirmed admission letter (for final sanction)
• Co-borrower: A close relative such as father, mother, sibling, spouse, grandparents, parents-in-law, or maternal/paternal uncle
• Security (for secured loans): Residential/commercial property, fixed deposit, or cross-collateral using an existing home loan.

Documents Required to Apply for a CA Education Loan

Tata Capital has the below documentation requirements for CA student loan:

For Salaried Co-applicant

• Recent passport-size photograph
• Photo identity proof (Aadhaar / Passport / Voter ID / Driving Licence)
• PAN card or Form 60 (if applicable)
• Address proof (same as ID proof)
• Signature verification
• Form 16 for the last 2 years
• Salary slips for the last 3 months
• Bank statements for the last 6 months

For Self-Employed Co-applicant

• Recent passport-size photograph
• Photo identity proof (Aadhaar / Passport / Voter ID / Driving Licence)
• PAN card or Form 60 (if applicable)
• Address proof
• Signature verification
• Income Tax Returns, Profit & Loss statement, and Balance Sheet
• Bank statements for the last 6 months

Application Process: Step-by-Step Guide to Avail a CA Education Loan

1. Check eligibility
   Ensure you meet the basic criteria such as age, nationality, academic qualification (10+2/diploma), and admission to a recognised CA course or coaching institute.
2. Estimate loan requirement
   Calculate the total cost covering coaching fees, exam fees, study material, and living expenses to decide the loan amount needed.
3. Choose loan type
   Decide between an unsecured (collateral-free) or secured CA education loan based on the amount required and availability of security.
4. Arrange a co-applicant
   Finalise an eligible co-applicant (parent, sibling, spouse, etc.) with stable income and credit profile.
5. Submit application
   Apply online or at a branch with academic details, course information, and co-applicant details.
6. Provide documents
   Upload/submit identity proof, address proof, academic records, admission proof, and income documents of the co-applicant.
7. Loan assessment and sanction
   The lender reviews eligibility, credit profile, and documents before issuing a sanction letter.
8. Disbursement
   Once accepted, the loan amount is disbursed as per fee schedules or requirements.

Can I get a CA education loan without collateral?

Yes, many banks and NBFCs offer collateral-free (unsecured) CA education loans, especially for moderate loan amounts. Approval depends on factors such as your academic profile, the CA course stage, and the co-applicant’s income and credit score. For higher loan amounts, collateral may be required.

Conclusion

A good chartered accountant can make or break the financial backbone of an organisation. CAs are highly trained and skilled accountants with immense knowledge in accounting, taxation, financial laws, and other related subjects. CA is a safe career choice as you will have no dearth of opportunities upon graduation. However, becoming a CA can be expensive and securing an education loan for CA students can be an excellent choice.Apply for an instant student loan with Tata Capital and get a headstart on your journey to becoming a sought-after Chartered Accountant. With Tata Capital’s education loans for CA, you get affordable interest rates and flexible repayment options that allow you to comfortably focus on your education. Our loan options come with pre-admission sanctions and quick approvals that make it ideal for all students.