Every year, India produces almost 25% of the total number of engineers in the world. It means there are nearly 1.5 million engineers in different streams who complete their degree each year. Out of this staggering number, only a few chose to continue with their higher studies while the take the professional route.
An engineer loan is tailor-made to meet the specific needs of the salaried and self-employed engineers.
A salaried individual might need some extra funds to tackle an emergency or to cover the daily expenses. On the other hand, a self-employed individual might use a professional loan to order a bulk quantity of raw material or to meet any cash crunch. Hassle-free engineer loans provide that much-needed funding to overcome any financial hurdle. These loans have easy-to-meet eligibility criteria and quick fund disbursal that can help in an emergency situation.
Let’s take a look at some tips that salaried and self-employed professionals should remember before availing an engineers loan.
- Eligibility criteria – A salaried individual needs to be between 25 to 59 years of age and should have 3 years’ work experience to avail this loan. A self-employed individual should be of 26 to 65 years of age and should work as an independent, or consultant engineer to avail the credit. Also, he or she should have at least three years of business experience to be eligible for the loan.
A decent credit rating is also among the necessary eligibility criteria for availing an engineers loan. A salaried personal should have a good CIBIL score (at least 750 or better), and a self-employed individual must maintain a good CRISIL score to qualify for engineers loans.
- Document criteria – Both salaried and independent engineers need to provide only the essential documents while applying for an engineers loan to any financial institution. Some documents may vary because of the nature of their profession. These documents include –
- KYC documents – Both salaried and self-employed individual will need to submit KYC documents along with a recent passport sized photographs.
- Certificates of their engineering degree – This is also applicable to everyone.
- Bank statement for the last three months – Applies for both salaried and self-employed individuals.
- Salary slip for the previous three months – A person working with an MNC, public, or private sector will have to submit last three months’ salary slip as a proof of income.
- Evidence of business vintage – A self-employed individual has to file papers showing their business vintage is at least three years to avail an engineer’s loan.
- Offers and benefits – Lenders often provide multiple offers and benefits on financial products. They might offer reduced engineer loan interest rate and minimum processing charges and fees. It is better to visit the financial institution’s website to understand the fees and charges levied on an engineers loan.
- Application process – Many financial institutions offer the facility to apply online for credit. This helps quicken both document submission and verification procedures. Once the application form is appropriately filled and submitted, lenders will check different parameters (including credit rating and credit history) and approve the application. Financial organizations generally complete the approval process within 24 hours.
After that, the borrower will have to submit the required documents. Once a lender verifies all the papers, they will disburse the loan amount.
Financial institutions like Bajaj Finserv offer Engineers Loan within 24 hours. They offer credit amounts of up to Rs. 25 Lakh for salaried individuals and up to Rs. 30 Lakh for those self-employed. Bajaj Finserv also provides borrowers with pre-approved offers on personal loans, home loans, business loans and a range of other financial products and services. This simplifies the process and saves time.
An engineer’s loan is a tailored financing solution for engineers looking to enhance their financial futures.