When it comes to meeting costs, an engineer would need as much financing as any other professional, even if he is a salaried individual and has a fixed income. It is a given that engineers do manage to make a good living but there are times when even they need financing to meet all their needs and they need the money for heavy expenditures like a wedding in the family or even to renovate their house.
It is not always possible to dish out a large sum of money from one’s pocket entirely but by applying for an engineer loan for salaried professionals, much of this problem could be mitigated. It would be far easier to repay the loan as well because the salary of the engineer would provide a steady income and this can be used to form a good repayment plan.
There are many banks and NBFCs that has specific loan for engineers. NBFCs like Bajaj Finserv have a good loan scheme in place for salaried engineers where the loan amount could go up to Rs 25 lakhs. These are also unsecured loans and hence no collateral or guarantor to be needed. If all the papers are in place- and minimal documentation is required- then the loan can be approved in as less as 24 hours. The repayment tenor is from 12 to 72 months and one can also avail the online tracking system to keep a tab on the loan account.
One can repay the loan and again apply for another loan in future if the need arises, and on the basis of the first dealing, there are also chances to get selected for pre- approved offers that make the loan process much more lucrative the next time.
NBFCs like Bajaj Finserv also have a Line of Credit facility for the engineers and this makes it very easy for them to pay back their engineer loans for salaried employee, which is akin to the flexi- loan scheme mentioned above. The salaried engineer in question has the option of withdrawing only the amount he needs at a particular period and then make repayment of the funds as and when it is convenient for him. He can withdraw only that much money from the loan account that he needs at the moment and then pay interest on that amount only. This indeed helps in saving a lot of money in the long run and the money could also be put to good use when required in the business.
Bajaj Finserv also has loan transfer facilities, so once the engineer has made regular EMI payments for 12 consecutive months to his former creditor, the outstanding loan balance can be transferred as Bajaj Finserv has one of the best interest rates in the industry, which is significantly lower than most other creditors. Engineer loan interest rates ranges between 14% to 16% for salaried individuals. One could also opt for a flexi- loan scheme where one could choose one’s own repayment plans and also make part prepayments as and when they see fit.
Certain documents have to be produced at the last stage for verification and they should include the educational certificates of the engineer, employment details and pay slips of the last two years, IT return documents of the last three years, all the KYC documents and any other document that the bank or NBFC might want. In case the documents are not in order, the application might be cancelled and so special attention should be paid to them.
Once the engineer has met all the eligibility criteria for the loan, which can be determined through an eligibility calculator, and provided one has a good credit score, one can go ahead with the loan application and set up a business of his own or meet all personal needs.