Mistakes To Avoid When Applying For Loan For Qualified Engineers
Businesses need additional capital from time-to-time and for a self-employed or a consultant engineer, cash flow can be inconsistent. In such times, a professional loan for engineers can help your business through unforeseen cash-strapped circumstances. Conversely, this customised loan can also be taken when you plan to expand your business and needs funds to do so.
A professional loan for engineers can be availed through various lenders, but you need to be careful to avoid making mistakes that can be detrimental to your application. Here are some common mistakes which you should avoid when applying for a qualified engineers loan:
1. Not Checking Eligibility:
This is the first and foremost mistake engineers make. If you carefully read the eligibility criteria, you can be rest assured that you won’t waste time later. Every lender has different application requirements which need to be carefully studied and complied with. Most often, you will need to meet the following requirements:
- You must be self-employed or must be a consultant engineer
- Self-employed engineers must have at least three years of work experience
- You should have graduated at least five years ago
- You must be aged between 26 and 65 years
2. Dismissing Loan Documentation:
If you don’t submit all the required documentation for the loan in one go, you may not get quick approval. With most lenders, the application form can be submitted online, but before you do so, gather all your documents. Generally, the following documents are required:
- Completed application form
- KYC documents (for all applicants, in case of more than one applicant)
- Proof of business vintage of three years
- Certificate of practice as a business proof
- Details of your engineering degree
3. Failing To Choose The Right Loan:
In their keenness to receive the loan amount quickly, applicants tend to overlook the type of loan that is best for their business. Choosing the wrong kind of loan can work out to be expensive rather than being helpful. Opt for a loan that caters to your needs and provides features like a flexible line of credit to help your business with unpredictable financial needs. Specialised loans such as loans for engineers also offer nominal interest rates as compared to that of general loans. Thus, choosing the right loan goes a long way in ensuring that you make a financially wise decision.
4. Overlooking The Terms And Conditions:
Before finalising a loan, be sure to read and understand the terms and conditions of the loan being offered by the lender. In case understanding legal jargon is not your forte, get help from a lawyer to clearly know the legal implications. Look out for conditions that levy penalties on prepayment and foreclosure. It is in your best interests to opt for a loan that doesn’t pile on these charges. Plus, studying the fine print will give you necessary information such as what happens in case you miss an EMI payment.
5. Ignoring Your Credit Rating:
Before applying for a loan you must check your credit worthiness. After all, your credit score is the first thing a lender will evaluate. Since loans for engineers are unsecured, this is the only way for a lender to judge your ability to repay the loan. It is a record of how financially responsible you have been with regards to your credit card payments and mortgage loans.
Bajaj Finserv offers a specially designed Loan for Engineers for all your needs. Their collateral-free loans are effective in helping your business grow. Moreover, with their easy online application process and minimal documentation requirements, their loans for engineers are the best in the market. You can apply online or call 1800-209-4151 and a Bajaj Finserv representative will get back to you at the earliest.