Engineer Loan: Rules To Follow When Taking An Engineer Loan

Loan for Engineer is a specific loan given to qualified engineers in a lower interest rate. This is a great opportunity for engineers to get easy loans for their personal or other requirements. This loan has few criteria and should be given great importance.

Let us introduce you to all the criteria required to be fulfilled:

The most obvious

The most obvious criterion is that you are required to be an engineer. You should be working in an engineering firm or having your own engineering firm. You can also be a consultant engineer. If you are doing a job, then you need to show your employment details including your salary slip. If you own an engineering firm or involved in business, then you need to submit your company’s registration documents.

Alma mater

You should have a graduation degree in engineering. While applying for the loan, you have to submit your marksheets and certificates. You must be working when you apply for this loan. The degree should be valid.

Work experience

For applying for engineer loan for salaried employee, you are required to have at least 3 years of experience as self employed, along with at least 5 years of vintage experience since the time of graduation. This ensures you are a skilled engineer with good experience and strengthens your chances of obtaining loan from the financing company. To prove your experience level, you are required to submit your business vintage for 3 years with a certificate of practice.

Right age

Every loan needs a good span to be fulfilled, and therefore, age is a very important aspect. For obtaining your engineer loan, you must be within 25 to 65 years of age. This range is sufficient and ideal for validating a loan.

Tax payer

Only taxpayers registered with the Government of India are eligible for this loan. Submitting the PAN card is a must for salaried employee applying for an engineer loan. The tax should be cleared for a given financial year, and defaulters will not be entertained.

Documents to be submitted

Various documents are required for this loan –

  • Payslip, certificate of practice, business licence and registration certificate of the company are required to validate your work experience and professional background.
  • Marksheets and registration certificate of University for educational criteria.
  • Personal documents including voter card, Aadhar card, PAN card, electricity bill, phone bills as address proofs.
  • Make sure all the documents are updated and their photocopies are submitted while applying for the loan. Any kind of false information will lead to cancellation of loan.

Accurate form filling

Form filling related with financial aspects should be done with utmost care, alertness and honesty. Make sure there is no mistake. Avoid correcting the form here and there. Understand the protocol from the agents and take assistance whenever you feel confused.

Engineer loan is a great opportunity for enthusiastic engineers to start a new venture. It can serve as a capital for new business. It is always best to take good consultation and plan out a budget before opting for this loan. Your credit score plays a major part in this as engineer loan is an unsecured loan. The loan estimate and credibility greatly depend on your age and credibility. Keep the above mentioned criteria in mind and work patiently. Do not apply for multiple loans at a time. Compare between various financial companies and find what suits for you.

An interest rate of engineer loan is 14–16% for salaried individuals and 16–19% for self-employed individuals. Go through EMI calculator to get a brief idea. Research well before applying. Be aware of any fraudulent activity. Make sure all your previous debts are cleared so that the credit score, this will definitely ensure better chances of loan approval.