Thanks to most banks and NBFCs like Bajaj Finserv, it is possible for most engineers to find adequate financing in no time. There are specific finance for engineers in place which can be used to finance the needs of all the requirements of the engineer. However, many engineers complain that their loan application has been rejected time and again and over time, they lose the confidence to apply again. However, there are a few questions that one should be asking oneself to ensure that they have ticked all the right boxes before applying for the loan.
Why do I need the loan?
It is sad but true that most engineers do not have a clear idea about the way they are going to utilize theloan for engineermoney and hence, often fail to convince their creditors. Yes, they might need the money to take care of certain aspects of their business, but they need to provide a specific plan before their lenders. Is it to buy new machinery for the business? Is it to take care of the cash flow? Or is the loan applied for is a personal loan to take care of one’s own personal expenses? These are questions which the creditors will ask and it would be a good idea to come up with a well thought of reply.
Do I have a good cibil score?
Loan for engineers are unsecured loans and so most banks and NBFCs will not ask for collateral or the presence of the guarantor. So how do they know that you are a safe person to lend money to? This is mostly determined by the Cibil Score and if you have a score less than 600, it is best to wait for a period of time for the score to improve and then apply for the loan. A score above 700 is considered a good one and try to ensure that there are no overdue credit card loans or unpaid bills.
Do you have a good repayment plan?
In case the loan amount that you are borrowing is a particularly hefty one, the creditor will definitely want to look into your repayment plan. Try to form a blueprint of your business and explain to your creditor where you see your company in the next five or ten years and what will be the expected status of your business. If the creditor sees that you are really thinking hard towards the betterment of the company as well as about the repayment of the loan, they too will help you out with good customized options to help you make the most of the loan. Make sure you are eligible for the loan by opting for lender’s eligibility calculator and ensure that all the documents are in place and you are good to go with the application.
Have you researched your lender?It is important to research the various lenders in the market so that you can find the best loan options for your business. Most engineers simply just jump for the first lender who tries to offer them lower rates of interest than others but there might be a lot of extra charges and fees to deal with later. On the other hand, a lender might be offering a slightly higher interest but the loan comes with a host of additional benefits which will actually make the loan cheaper in the long run. Hence, a proper research is necessary before apply for the loan. In fact, it is a good idea to continue with the research so that just in case you again come up with another lender who is offering still better engineer loan interest rates, you can opt for balance transfer after the first year of paying your EMIs.