Vivek Shahni, 31, a mechanical engineer, started a small paint manufacturing unit some years ago. The business orders raw materials based on requirement. Shahni also plans to start a unit in North India to make the logistics easier. The estimated cost of expansion is Rs 25 lakh. Vivek wants to finance the expansion through an Engineer Loan from Bajaj Finserv.
What Is an Engineer Loan?
As the name suggests, it is a business loan for engineers. You could use it as a small and medium-sized enterprise (SME) loan for machinery financing. Bajaj Finserv’s engineer loan is an unsecured loan of up to Rs 30 lakh. It is available to self-employed and consultant engineers.
Benefits of Bajaj Finserv’s Engineer Loan:
- Easy to apply:
It is very easy to apply for this loan. Just fill up the form online. A representative from Bajaj Finserv will contact you and process your application. You can get instant loan approval within 24 hours.
- Avail finance when needed:
You do not need to apply separately every time you need money. Bajaj Finserv sanctions a lump-sum loan amount when processing your loan. So, you can use funds from the loan account as needed.
- Save interest:
You will pay interest only on the amount you draw. Say you took a loan of Rs 20 lakh. But you used only Rs 15 lakh. In any other loan, you will have to pay interest on the entire loan amount of Rs 20 lakh. Here, you pay interest only on the used amount of Rs 15 lakh. This brings down your interest expense significantly.
- Expand your business
Use an engineer loan to grow your business. You may want to either expand to a new city or add more people. Bajaj Finserv charges a fixed rate of interest on this type of loan. This may allow you to finance your expansion project with ease.
- Ready-to-use working capital:
You can use this loan for your working capital needs. Withdraw cash at the time of shortage and keep moving forward.
- Equipment financing:
Your business needs to upgrade the technology or the machinery from time to time. At times, replacing old equipment can also help you reduce the cost of production. An engineer loan can help you to keep the business machinery up-to-date.
Features of Bajaj Finserv’s Engineer Loan
- Loan amount:
You can avail an engineer loan ranging from Rs 3 lakh to Rs 30 lakh. This makes it convenient to cover most of your expenses.
You do not need to provide any collateral or security. There is also no need for a guarantor. It is an unsecured loan so you can avail it without much hassle.
You can choose from a repayment tenure of 12 months to 60 months as per your convenience. Ensure that you choose something you can repay without defaulting.
To get the loan, you must submit some basic documents for KYC purposes. This includes your engineering degree and business-related documents as well.
- Loan account access:
Get all information related to your loan at a single place. Start by logging into your loan account. From here, you can track your transactions, repayments, outstanding loan, and more.
Because of Bajaj Finserv’s online application process, Vivek could avail the engineer loan much faster than he expected. He had applied for a loan of Rs 30 lakh. Of which, he used Rs 25 lakh for his expansion in north India. And he used another Rs 2 lakh for equipment and as working capital. Due to this, he only had to pay an interest on the Rs 27 lakh and not the entire Rs 30 lakh.
The Engineer Loan can be a useful tool while you consider expanding your business. You can avail various benefits and increase your profits.
To know more about the engineer loan by Bajaj Finserv, click here