Professional loans or loans for professionals are tailor-made to help professionals such as engineers meet their financial requirements, irrespective of whether the requirement is business or personal in nature.
These loans provide substantial financial support to meet immediate monetary requirements. Multiple lenders offer such advances across varied interest rates and loan terms. Among all professionals, engineers most popularly avail such loans. Engineers are among the most potent driving forces behind fledgling businesses in India. They refer to such advances to fund their business requirements other than etcetera personal needs too.
Professional loans: Loans for engineers
Just like any other professional loan, loans for engineers are tailor-made to suit them as borrowers. Such loans come with customised eligibility criteria as per their educational and professional qualifications. They do not have any end-user restriction. As a borrower, you can utilise the funds from such loans as and how you require.
Here are 6 reasons why as an engineer, you should apply for such loans to meet your short-term or long-term, professional or personal goals.
1. Start your own business
A loan for engineers can provide the necessary monetary support if you intend to start your business. NBFCs like Bajaj Finserv provide a credit of up to Rs. 30 Lakh to self-employed engineers. This loan is exclusively designed to keep your company rolling.
These collateral-free loans can be approved and disbursed in short notice. In case of emergency fund requirements for your business, you can apply for a loan for professionals to solve any unforeseen situation.
2. Higher studies
After graduation, many engineers aim for higher studies. This requires a substantial amount of funds, especially if the higher studies are abroad. With the help of an engineer loan, you can avail an unsecured loan of up to Rs. 25 Lakh.
3. Renovate your house
You can use loans for professionals to renovate your home also. The significant capital allows you to redecorate and repair the structure.
If you want to construct your house or extend a room or two, then also this loan helps you with the required support.
With the sufficient funds, you can even allocate a larger section of the loan amount to make civic changes or even extend the structure.
4. Minimum documentation
The following documents are necessary to qualify for an engineer’s loan:
- Degree certificate.
- Salary slip of last 3 months.
- Bank account statement of the previous 3 months.
- KYC documents like Voter ID, Aadhaar, Passport, PAN, etc.
- Proof of business for self-employed engineers.
- A recent passport-sized photo.
Apart from these documents, you may need to provide other documents, if required.
5. Easy to meet eligibility criteria
- Age – 25-59 years of age.
- Experience – minimum of 3 years of experience.
- Profile – This credit is available across 2 types, business loan for self-employed engineers and personal loan for salaried engineers.
Make sure you learn all about engineers’ loans before you apply for a loan for professionals. Here are 3 pointers which will play a vital to approve your loan application.
- Debt-to-income ratio – A debt-to-income ratio is an important criterion via which lenders check the credibility of borrowers. Your fixed obligations like credit card bill, monthly expenses, EMIs of previous loans are compared against your monthly income. If the debt-to-income ratio is more than 50%, the chances of your loan approval drastically decrease. Maintain a minimum FOIR of 50%.
- Credit Score – A credit score is another parameter that lenders check. A minimum credit score of 750 is essential to apply for professional loan. Along with these 2 parameters, there are other tips to improve your chances of getting an engineer’s loan.
- Professional portfolio – An applicant must have a specific experience tenor to apply for a loan for engineers. Generally, both salaried and self-employed individuals need to have at least 3 years of work experience to be eligible for such a credit. However, the minimum necessary work experience may vary between different lenders.
NBFCs like Bajaj Finserv bring you pre-approved offers to save you time when you avail financing. Pre-approved offers come with home loans, personal loans and host of other financial products and services. You can share a few necessary details online to check your pre-approved offer.
Although loans for professionals are financial products, they are meant to provide monetary assistance to them for future endeavours. Engineers, doctors or CAs, each professional should aim to benefit from these loans customised for them and invest in tomorrow.