How to improve your eligibility to avail an engineer’s loan?
Out of the 1.5 million engineering graduates that finish their studies every year, a majority decides to start their own business or to join a company to earn their livelihood. Self-employed and salaried engineers often require funding to grow their business or fulfil any emergency need, as well as to consolidate any existing debt, or to meet some personal expense. An engineer loan can be one of the best financial products for this situation.
Availing an unsecured loan to buy new equipment or to tackle a cash crunch is some of the primary use of this kind of advance. Many financial institutions in India offers personal loan for engineers. For example, Bajaj Finserv, one of the largest financial institution in India, offers up to Rs. 25 Lakh for salaried, and Rs. 30 Lakh for self-employed individuals at an affordable Engineer Loan interest rate.
While availing finances from lenders might seem easy, there are many small details borrowers miss, especially if they are applying for credit for the first time. If this is your first loan application, here are a few tips that you should remember to enhance your engineer loan eligibility.
- Plan in advance –
Whether you are a salaried or a self-employed engineer, it is better to plan accordingly. Multiple situations can arise that may require financing. If you are self-employed you might need the finances to boost your engineering business, on the other hand, a salaried individual might need to pay for studies necessary for career growth, or to consolidate existing debt. All this can be managed with the funds from an engineer’s loan.
- Know why you need the credit for –
Financial experts always suggest utilising funds only for the purpose to improve your credibility or revenue generation. Prioritising your needs will help you utilise the funds systematically and to pinpoint exactly how much credit you will require and subsequently apply. Remember to add the processing fees and charges when you apply for a loan.
- Meet all the eligibility criteria –
A lender will approve your loan instantly if you meet all the eligibility criteria. A good credit rating, sound credit history, no outstanding loan, and good FOIR ratio are some of the main things financial institutions look for.
Credit rating is one of the most essential engineer loan eligibility criteria. A CIBIL score of 750 or higher is considered as a good credit score. It means that you are not a defaulter, have repaid all your previous debts in time and never missed a repayment.
In case you are a first-time borrower you might find it difficult because of a low credit rating. However, engineers can follow simple steps to improve their credit score and easily meet the engineer loan eligibility.
- Prepare the necessary documents –
Generally, a personal loan for engineers requires minimum documentation. But one of the main reasons to loan application rejections is the absence of important documents. These include the KYC documents, proof of residence, engineering degree proof, proof of business vintage, proof of income etc.
Overruled applications will lower the CIBIL score, so it is better to organise all the necessary documents beforehand to avoid rejection.
Following the steps mentioned above will help your engineer loan eligibility. You will enjoy a host of benefits, as well as the opportunity to take your career or business to the next level with the help of an engineer loan.