Every business needs a constant cash flow to increase revenue and ensure rapid growth. With various options available today, it is easier for business owners to meet their financial requirements. However, there is a specialised business loan offered to engineers like you called an Engineer Loan.
Tenor of an engineer loan
- With credit up to Rs. 15 lakh and approval within 24 hours, your engineer loan can be repaid through a flexible tenor. While the maximum tenor is 60 months (or five years), you can settle on a plan that is convenient for you.
- With the freedom to choose the tenor, you can ensure that you pay your EMIs on time and don’t end up paying EMI bounce charges or penalties. This also guarantees that your credit score remains high, which helps you take more loans or credit in the future.
- Choosing a longer tenor makes the EMIs lesser, and choosing a shorter tenor means that you can pay off the loan faster.
- Depending on your business needs and income, you can choose a suitable repayment period.
Here are few of the benefits of engineer loans that you should know about
- It provides flexibility: Engineer loans come with a Line of Credit (LOC) facility. This facility charges interest only on the money that you use. Consider this example: you are an electronics engineer who runs a unit that manufactures Integrated Circuit chips. Your business is doing well and you plan to expand it by manufacturing Printed Circuit Boards. You take an engineer loan of Rs. 15 lakh for this expansion with a tenor of three years. But, you use only Rs. 8 lakh and the balance Rs. 7 lakh remains unused. Instead of taking a term loan, you can opt for a Line of Credit. Then the monthly EMI you will pay is calculated only on the amount used, that is Rs. 8 lakh, and not on Rs.15 lakh.
Also, your EMI will consist only of the interest and not the principal amount. The principal is payable at the end of your tenor.
2) It eliminates the need for collateral or a guarantor: Loans for engineers are 100% collateral-free. You don’t have to pledge any of your assets or nominate a guarantor.
3) It comes with online convenience: Right from applying for your loan to tracking your loan details, you can do everything online. Additionally, the minimal documentation required makes this process a breeze.
4) It offers competitive interest rates: For any loan, the interest decides how much of your profit is going to go towards EMI payments. So, the lower the interest, the larger the chunk of profits that you can hold on to. The interest rates of Engineer loans is nominal, which in turn lower your expenses. The money you save will help you run your business smoothly.
Eligibility criteria for engineer loans:
- You must be a self-employed or consultant engineer between the ages of 26 and 65.
- You need five years of vintage experience since graduation. You also need three years of experience being self-employed.
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Documents required for an engineer loan:
- Completely filled-out application form
- KYC documents
- Passport-size photographs
- Business vintage for three years
- Certificate of practice as business proof
- Details of your engineering degree
If your goal is to become more successful, then don’t let finance be an obstacle. Apply for Bajaj Finserv’s Engineer Loans.