Engineer loans are a great way to finance your expenses if you are planning to expand your venture or boost your career. Financial institutions offer professional loans for engineers from the fields of mechanical, IT, computer science, civil, electronics, or any other specialisation. With the help of the additional capital, an engineering firm can optimise the working capital, buy new machinery, hire skilled workforce, or even expand the existing set-up.
Loan for Engineers is a form of unsecured loan with affordable interest rates and flexible repayment tenors. Due to their unsecured nature, getting approval from various lenders may prove to be difficult. Fortunately there are some easy steps that you can take to increase your engineer loan eligibility. Here are the top tips to boost your chances of availing an engineer loan.
1. Repay all your existing loans – Repaying all your existing debts will increase your engineer loan eligibility. Not only will it positively affect your CIBIL score but also decrease your FOIR ratio.
FOIR, or Fixed Obligation to Income Ratio is the percentage of your income that is required to pay off all your fixed monthly obligations. Ideally, it should not cross 50% of your total income. Repaying your existing debts will bring the FOIR down and make you more eligible for an engineer loan.
2. Make sure you have a good CIBIL score - CIBIL or credit score is one of the most important factors that increases or decreases your loan eligibility. It reflects your financial history, and the ability to repay the loan. Lenders prefer borrowers who have a high CIBIL score as they have a good repayment history and no previous records of defaulting. Eligibility criteria for engineer loan will increase your chances to get this facility if you have a CIBIL score of 750 or higher. You will also be able to negotiate for a lower engineer loan interest rate with a better score. Some tips to improve CIBIL score for engineers include paying off your existing debts, paying all your bills on time, staying within your credit limit, and so on.
3. Apply with a co-signer – If you own a manufacturing business or an engineering firm, you can apply along with a co-signer. This will dramatically increase your professional loan eligibility as the liability will be divided. You can also opt for this method if you have poor credit score but in desperate need of financing.
4. Increase your work experience – Lenders generally ask for at least 3 years of experience, whether you are a salaried or a self-employed engineer. Your experience speaks a lot about your repayment capabilities as you have a steady source of income. Also, if you are working for a reputed MNC, public or private sector, your eligibility increases as you have a stable job with a reputed company.
5. Prepare all your documents – Another important aspect that you should remember is to provide all the documents that the lender asked for. Make sure there is no discrepancy or missing document with your professional loan application. A major number of applications get rejected because of misplaced or incorrect documents.
Financial institutions require only a few essential documents like KYC, proof of address, engineering degree certificate, employment proof or business vintage proof, etc. Their minimum documentation requirements keep the process hassle-free and easy.
Tailor-made for salaried and self-employed engineers, these loans offer the convenience of meeting financial challenges without depleting your monthly savings. With as much as Rs. 30 Lakh available in the form of unsecured funds, you can easily tackle emergency financial crises. Maintaining all the aspects mentioned above will increase your eligibility for a Loan for Engineers.
Loan for Engineers is a form of unsecured loan with affordable interest rates and flexible repayment tenors. Due to their unsecured nature, getting approval from various lenders may prove to be difficult. Fortunately there are some easy steps that you can take to increase your engineer loan eligibility. Here are the top tips to boost your chances of availing an engineer loan.
1. Repay all your existing loans – Repaying all your existing debts will increase your engineer loan eligibility. Not only will it positively affect your CIBIL score but also decrease your FOIR ratio.
FOIR, or Fixed Obligation to Income Ratio is the percentage of your income that is required to pay off all your fixed monthly obligations. Ideally, it should not cross 50% of your total income. Repaying your existing debts will bring the FOIR down and make you more eligible for an engineer loan.
2. Make sure you have a good CIBIL score - CIBIL or credit score is one of the most important factors that increases or decreases your loan eligibility. It reflects your financial history, and the ability to repay the loan. Lenders prefer borrowers who have a high CIBIL score as they have a good repayment history and no previous records of defaulting. Eligibility criteria for engineer loan will increase your chances to get this facility if you have a CIBIL score of 750 or higher. You will also be able to negotiate for a lower engineer loan interest rate with a better score. Some tips to improve CIBIL score for engineers include paying off your existing debts, paying all your bills on time, staying within your credit limit, and so on.
3. Apply with a co-signer – If you own a manufacturing business or an engineering firm, you can apply along with a co-signer. This will dramatically increase your professional loan eligibility as the liability will be divided. You can also opt for this method if you have poor credit score but in desperate need of financing.
4. Increase your work experience – Lenders generally ask for at least 3 years of experience, whether you are a salaried or a self-employed engineer. Your experience speaks a lot about your repayment capabilities as you have a steady source of income. Also, if you are working for a reputed MNC, public or private sector, your eligibility increases as you have a stable job with a reputed company.
5. Prepare all your documents – Another important aspect that you should remember is to provide all the documents that the lender asked for. Make sure there is no discrepancy or missing document with your professional loan application. A major number of applications get rejected because of misplaced or incorrect documents.
Financial institutions require only a few essential documents like KYC, proof of address, engineering degree certificate, employment proof or business vintage proof, etc. Their minimum documentation requirements keep the process hassle-free and easy.
Tailor-made for salaried and self-employed engineers, these loans offer the convenience of meeting financial challenges without depleting your monthly savings. With as much as Rs. 30 Lakh available in the form of unsecured funds, you can easily tackle emergency financial crises. Maintaining all the aspects mentioned above will increase your eligibility for a Loan for Engineers.
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