Engineer loan is a tailor-made financial product for both salaried and self-employed professionals. These advances offer a substantial amount of funding to help the borrower overcome their financial difficulty.
An applicant has to meet specific eligibility criteria while applying for credit. These conditions are defined by the financial institutions and scrutinise the creditworthiness, financial history, credit rating, and occupation of a prospective borrower.
You have to meet all these conditions to successfully apply for a loan for engineers. Let’s take a look at some of the most common criteria required to apply for credit.
1- Profession –
A professional loan for engineers is available for both salaried and self-employed individuals. You can apply for a credit if you are working with a reputed organisation. For self-employed professionals, you have to operate your engineering firm or work as a consultant engineer.
Both salaried and self-employed engineers if have the engineer loan eligibility, will need to submit some necessary documents to prove their income. You will have to provide your employee ID and employment details if salaried, and will have to submit your bank statement if self-employed. It is one of the most crucial conditions you need to know about a loan for engineers.
2- Work experience –
Lenders prefer applicants who have some amount of work experience in the field of engineering. It shows that the borrower has a higher chance of repayment because they have a steady income. Ideally, financial institutions look for at least 3 years of work experience for both salaried and three years of business vintage for a self-employed individual.
You will have to submit a copy of your engineering degree certificate along with professional documents and proof of business while applying for an engineer loan. More extensive work experience will increase your creditworthiness and can help you secure a larger loan amount while applying.
3- Correct age –
Loan for engineers is available for professionals between 25 to 59 years (for salaried engineers) and 26 to 65 years (for self-employed engineers). You can only avail a credit if you fall between this recommended age bracket.
4- Tax compliance –
You can only secure an advance if you are a registered taxpayer with the Government of India. You will have to submit a copy of your PAN card and details of tax filed in the last financial year in case you are a self-employed individual. It is one of the most significant aspects of the checklist to apply for an engineer loan.
5- Required documents –
Submitting all the necessary documents is another essential condition required to apply for an engineer loan successfully. Any discrimination in the number of paperwork or application form may cause an instant rejection of your loan application. Contact your financial institution and learn about the documents that you will have to submit beforehand.
Several financial institutions require minimum documentation during application for credit. They requires only the following documents when you apply for a Loan for Engineers:
- A recent passport-sized photograph.
- KYC documents.
- Copy of engineering degree certificate.
- Proof of employment if you are a salaried engineer and proof of business vintage if you are self-employed.
Meeting these common conditions required to apply for a loan for engineers will make the process hassle-free, quicker, and will eliminate any chances of your application’s rejection. It is necessary you follow these recommendations whenever applying for credit.