What is the required eligibility to apply for a professional loan for engineers?India has seen a huge rise in the number of financial institutions which provide tailored professional loans to engineers. These loans can help cover a wide variety of purposes without straining a borrower’s repayment capacity.
Both salaried and self-employed engineers are eligible to apply for a professional loan. However, the eligibility criteria to avail personal finance for engineers are varied. The differences lie in age, experience and various types of documentation.
General eligibility criteria for engineer loans
For salaried engineers –
All salaried engineers between the ages of 25 and 59 years can take a loan from various financial institutions. They must also possess a minimum work experience of 3 years. Past working experience is essential as it helps demonstrate that the borrower can repay the amount successfully.
Besides this, note the list of documents that you as a salaried engineer need to provide.
-
All KYC documents that will validate your identity. These can include your PAN and Aadhar cards, Voter Identity card, electricity and water bills.
-
The original engineering degree certificate is needed to help back-up your educational qualification claims.
-
All bank account statements for the last 3 months must be submitted.
-
Salary slips for the previous 3 months.
-
Finally, when applying for an engineer loan, submitting passport-sized photographs is necessary.
-
Applicants must also be a taxpayer.
Salaried individuals can finance various requirements like weddings, child’s higher education, medical emergencies, etc.
For self-employed engineers –
The criteria for self-employed individuals to avail a loan for engineers are slightly different.
Such professionals must be within the ages of 25 and 65 years. The upper age limit is higher in this case because unlike salaried professionals, entrepreneurs or business owners do not have a fixed retirement age. Moreover, all self-employed engineers must also prove that their businesses have been in operation for at least 3 years.
The document required for engineer loan are mostly the same. They must submit all necessary KYC documentation including a PAN and Voter ID card to verify their background details. Besides, they must furnish their original engineering degree documents and bank account statements for the last 3 months.
Self-employed engineers do not need to furnish any income statements.
Independent engineers can use the loan amount to start a business or expand an already-present company. For example, a self-employed engineer who owns a manufacturing unit can invest in automation, the next big thing for an engineering business.
Differences in terms and conditions
There are some minor differences in terms and conditions between engineer loan for salaried and self-employed professionals.
-
Salaried engineers can avail a maximum amount of Rs. 25 Lakh, while self-employed professionals can get up to Rs. 30 Lakh.
-
The repayment tenor for salaried professional is between 12 and 72 months while self-employed engineers must repay the amount within 12 and 60 months.
Self-employed engineers who are entrepreneurs or have their own establishments must also furnish their organisation’s registration certificate.
As long as you meet the criteria, you can easily avail a loan from some of the leading financial institutions including NBFCs. Bajaj Finserv, for example, is an NBFC that brings you pre-approved offers on business loans, personal loans and home loans, besides a wide variety of other financial services. It not only simplifies the process of availing funds but also saves more time. Simply fill in a few basic details online to check your pre-approved offer.
A loan can help self-employed engineers expand their businesses in new areas. An engineer loan is mostly unsecured regardless of whether an applicant is salaried or self-employed. Loan approval takes only 24 hours if you meet all the eligibility criteria.
About This Author | Anuj
Joined: January 5th, 2018
|
|
