Taking An Engineer Loan? Here’s What You Should Know
If you are reading this, it is safe to say that a sizeable chunk of your time is spent researching the best course of action to ensure your venture is successful. Consider the example of Raghav Mistry. An electrical engineer, Raghav required funds for his electronic solutions company. He wanted to build a team to research and manufacture environment-friendly lighting in a new construction project. But he knew that he would require a large amount of money to make this happen. This was difficult due to his company’s current working capital requirements. So, when he learned of the many Benefits Of An Engineer Loan, he decided to apply for one immediately.
If you too are considering an engineer loan as a finance option, you need have a clear understanding of your situation and requirements.
But first, take a look at some benefits of an engineer loan that you can take advantage of:
Flexible Line of Credit:
An engineer loan is flexible in the truest sense of the term. You can withdraw money as and when the need arises and you have to pay interest only on the money that you’ve actually used. On a monthly basis, you pay EMIs that comprise only the interest component. The principal amount is due only at the end of the tenor. Moreover, you can also make part pre-payments or convert your loan to a term loan if you so desire.
The documents required for engineer loans are few and can be easily collected and organised. Unlike other loans, an engineer loan frees you from laborious paperwork.
You do not need collateral or a guarantor to avail an engineering loan. While most lenders need this as an assurance against repayment of the loan, all you need is a good credit rating. Also, if you are already a customer, you become eligible for a pre-approved loan, which is even quicker. So if a speedy solution is what you’re looking for, this option is just what you need.
The interest rates on this loan are low. As a result, you benefit from lower EMIs and can direct more funds towards the operation of your business. So, if you need funds for machinery and equipment, you can put the surplus money towards that instead of using it to pay a hefty EMI.
Generous Credit Limit:
If you are looking for a large sum of money, an engineering loan gives you a lump sum of Rs.15 lakh from just one lender. As a result, you can forget about negotiating with different lenders and spend your energy on your work instead.
You can apply for your engineering loan online to streamline the process. Moreover, you can also access all your loan details easily through an online account.
To ensure that you’re covering all your bases, here is a list of questions you can ask yourself before you fill in the application form.
- What is the loan amount that you need?
- How will you use the money?
- How soon do you need the funds?
- What kind of repayment plan are you looking for?
- What interest rates are you capable of paying?
- Do you have all your documentation with you?
Next, make sure you fulfil the eligibility criteria for an engineer loan. Take a look below to see what they are:
- You need to be a self-employed or consultant engineer.
- You need a minimum five years of work experience after your graduation, out of which you should be self-employed for at least three years.
- You are in the age group of 26–65 years.
If you fall under this bracket, then all that’s left to do is gather the following documents for an engineer loan:
- Correctly-filled application form
- KYC documents that include your identity, address and income proof
- Education certificate
- Business vintage for 3 years
- Proof of business in the form of a certificate of practice
Now that you understand how an engineer loan is an easy, practical and contemporary lending system that saves you time and money, consider taking an Engineer Loan from Bajaj Finserv. They disburse funds within 72 hours, are collateral-free and extremely flexible.