Whether it is for personal or commercial use, engineers can now avail customized loans from several financial institutions and meet their short-term as well as long-term monetary necessities.
Termed as a loan for engineers, salaried individuals can use these loans for personal purposes. On the other hand, self-employed engineers can take these loans to purchase equipment, optimize their working capital, etc. for their firms.
Financial institutions approve and disburse these loans under 24 hours. Hence, these are exceptional in case of emergency financial needs – be it personal or business-related.
You will have to fulfill a few engineers loan eligibility to have your application approved. Furthermore, increasing the eligibility criteria will also help you to avail the loan in less than 24 hours.
Here are 5 tips on how you can increase your engineer’s loan eligibility:
- Have the necessary documents
NBFCs will require you to provide various documents that include:
- Engineering degree certificate.
- KYC documents – PAN, Passport, Aadhaar, Voter ID, Driving License, etc.
- Bank statements of the previous 3 months.
- Income tax returns.
Also, salaried engineers have to provide salary slips of the last 3 months; self-employed engineers have to provide proof of business which certifies that the company is at least 3 years old.
Self-employed customers may also have to provide audited financial statements of the previous year when applying for a Loan for Engineers.
- Fulfill the eligibility criteria
The engineer’s loan eligibility criteria that you have to satisfy include:
- Age between 25 and 59 years.
- Working experience of minimum 3 years.
- Age between 26 and 65 years.
- Self-employed experience of minimum 3 years.
- Lower your monthly debt
Lower monthly debts or financial liabilities are one of the most vital pointers on how to qualify for a loan for engineers. Also, you must clear your credit card debt (if you have any).
Lowering your fixed monthly debt will increase your eligibility to avail the loan. Generally, lenders prefer customers whose monthly obligations are 50% or lower than their income.
- Increase your credit score
Your credit score is one of the primary criteria that lenders will consider before approving your loan. The CIBIL score plays a vital role in application approval as these loans are unsecured or collateral-free. Hence, a high credit score will mean you are more creditworthy to receive the financing and also repay in due time.
The CIBIL score you must target is 750; it is the ideal score that NBFCs look for. A high credit score may lower your engineer loan interest rate.
Tips to increase your CIBIL score:
- Avail a credit card if your score is low. Using a credit card is one of the simplest and quickest ways to improve your score. Also, do not close any existing or old credit card.
- Refrain from using more than 30% of your credit limit.
- Pay your credit card bills within the deadline. You will not only improve your credit score but also avoid finance charges and late payment fees.
- Make sure to pay the total amount due. If you pay the minimum amount due, it will have a negative effect on your CIBIL score.
- Apply for the right loan amount
Apply for the right loan amount as per your engineer’s loan eligibility to guarantee the outcome. Opting for a high loan amount may result in your application getting rejected.
Using a loan eligibility calculator is the ideal way to check the amount you are eligible for. You can use online tools such as an eligibility calculator. Enter your monthly income, existing loan EMIs, and outstanding credit card debt to learn the loan amount you are eligible for.
Apply to financial institutions such as Bajaj Fiserv for affordable EMIs, flexible repayment tenors and attractive loan terms and benefits.
Follow these 5 simple tips to increase your engineer’s loan eligibility and avail the highest possible loan terms. Compare all the options and fill an online form to apply for an engineer’s loan.