India is considered one of the biggest contributors in the present world economy. It is so because India produces numerous young engineers every year. These engineers are not confined to the traditional core sector jobs or employment in the IT industry. Today, many engineers look to set up their own businesses with out-of-the-box ideas based on latest technologies.India is considered one of the biggest contributors in the present world economy. It is so because India produces numerous young engineers every year. These engineers are not confined to the traditional core sector jobs or employment in the IT industry. Today, many engineers look to set up their own businesses with out-of-the-box ideas based on latest technologies.
Engineers however may face financial difficulties when starting up their new businesses. With time, they need to grow their market credibility and then, can apply for engineers’ loans. Such advances can be utilised to boost the working capital, purchase equipment, expand business, etc. There is only one major hurdle though. Engineers are not aware of their eligibility for these loans, even though these loans are tailor-made for them. That is why their dreams of a brighter future are not fulfilled.
Actually, the eligibility criteria for engineers loans are simple. Only a few basic documents are required. The engineer loan interest rate is also low, which makes repayments easier. Thus professionals from civil, mechanical, electrical and other engineering backgrounds can stabilise their businesses with these easily repayable loans.
Why does an engineer need loans?
Outside the cosmopolitan India, an engineering degree still works as a job-fetcher. Most people thought that they would get comfortable jobs from off-campus and on-campus interviews. Those days are now gone. ‘Core’ engineering jobs are disappearing. Central and State governments are hiring in lesser numbers.
Private companies do not provide financial stability. Nor do they provide job satisfaction at all times. This is why engineers can avail loans to create their own dream careers. Keeping in mind that entrepreneurs need liquidity to boost their businesses, loans are of great value. Given below are the eligibility criteria to avail loans for engineers:
For salaried engineers
Engineers who are in gainful employment with full-time jobs have separate rules. They must:
●Be within 25 and 29 years of age.
●Have 3 years of experience at a minimum.
Salaried engineers must keep their KYC documents, previous 3 months’ bank statements, all engineering degree certificates, last 3 month’s payslips, and passport-sized photographs. All the certificates must be handy and updated.
For self-employed engineers
Self-employed engineers need professional loans at times to sustain liquidity and to maintain a steady cash flow. Like salaried individuals, self-employed engineers also require KYC certificates, engineering degree certificate, bank account statements, and passport sized photographs. Additionally, they must have a business vintage of a minimum of 3 years for availing such loans.
Other important details
Loans are rejected on multiple grounds. Self-employed engineers need to showcase their business profitability to ensure an approval of their loans. Ensure that all your business details are in proper formats. Audits, good credit history and no outstanding debts will help out in a speedy disbursal.
Make sure you do not make any mistake while filling up the application form. Also, loans can be rejected if wrong information is provided while applying. However, there are some lending institutions like Bajaj Finserv who can simplify the process of getting an Engineer’s Loan for you.Such loans are handy as they have flexible tenures of repayment and are the best bet for the brightest minds of the future.