How to Use Engineer Loans to Your Benefit
Sohail Sen is an engineer from Kolkata. He needed more funds to keep the ball rolling at his engineering factory. He set out to find a suitable loan solution to tackle issues his unit faced. Many lenders offered various types of small business loans to him. He could choose from a machinery loan or a small and medium-sized enterprise (SME) loan. But then, someone told him about an engineer loan.
What Is an Engineer Loan?
Lenders have several types of business loans for engineers. An engineer loan helps self-employed or consultant engineers to carry out business functions. To get such a loan, you need to be a qualified engineer. You must also have work experience of five years. Your business also needs to have made capital investments for at least three years. An engineer loan offers a flexible line of credit. Sohail could get up to Rs 30 lakh through this channel. He could access this line of credit as and when he needed funds. He could get the funds from the sanctioned loan amount.
Uses of an Engineer Loan:
The engineering industry covers a wide range of goods and services. Most of the products and services you use daily have links with the engineering sector. Even the raw materials used may be the result of engineering. So, an engineer loan can provide funds for a vast range of purposes.
Here is a look at some common uses of engineer loans:
- Equipment financing:
Businesses need to adapt to any technological developments. The failure to do so can lead to obsolete products or high costs. But to access the right equipment and machinery, businesses need funds. An engineer loan can help a business to upgrade technology and stay up-to-date.
- Business expansion:
‘Without continual growth and progress, such words as improvement, achievement, and success have no meaning.’ These are the wise words of Sir Benjamin Franklin. To ensure the continued success of your business, you must diversify and expand. The expansion may involve hiring new staff and setting up new offices. You can make all this possible with an engineer loan.
- Raw material:
Quality raw materials determine the price you can command for the end-product. Use funds towards procuring the right quality of material.
- Daily operations:
The funds from an engineer loan can help meet your daily cash needs. Use it as working capital to carry out day-to-day activities. This can ensure that your daily dealings are done in a smooth manner.
- Marketing and distribution;
Consider the growing cost of media and advertising. Marketing a product requires a big budget nowadays. You may want to allocate a bigger marketing and distribution budget.
Getting an Engineer Loan:
You can avail an engineer loan online. You would need to provide your basic documents. This may include your engineering degree and business-related papers. Fill in the necessary information online and submit the documents. You would also have to pay a processing fee.
Points to Note:
The tenure of an engineer loan ranges between 12 and 60 months. You need not provide collateral or security. Bajaj Finserv fixes the rate of interest at the time of availing the loan. You may have to pay a convenience fee for availing the loan online. Foreclosing the loan before the tenure and part prepayment would attract extra charges.
Like Sohail, put your engineering degree to use when your business needs funds. An engineer loan gives you extra benefits and convenience at a minimal cost. Avail an engineer loan today and take your business to new heights.
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