You need to keep an eye on several factors which will determine your eligibility before you apply for an engineer loan. If you are confused where to start from, here’s a brief guideline for you.
Now, let’s find out if you are eligible for availing an engineer loan and how to improve your chances of engineer’s loan approval.
The essential eligibility requirements:
- Are you a consultant engineer or self-employed?
The first and foremost requirement is whether you own an engineering firm or you work under someone? If it’s the latter, you need to provide necessary documents like salary slips and your letter of experience while applying for the loan. And if you are an entrepreneur, the registration document of your company should do it.
- Do you have work experience?
It’s imperative that you have engineering skills and are experienced in the same field. In other words, you must have a minimum experience of 3 years as an entrepreneur. This is important so that the lender can trust you and feel secure that the loan is being provided to a capable individual, thereby, preventing fraud risks.
To prove yourself creditworthy, you would have to submit your practice certificate and the business vintage claiming that you have a business going on for at least three years.
- Necessary qualification is a must
To get an engineer loan, you must provide with a valid degree of engineering, certificate of graduation and mark sheets. This criterion is applicable for both self-employed as well as salaried engineers.
- Check your age limit
To be eligible, self-employed engineers must be within the age bracket of 26 to 65 years, and salaried engineers must be between 25 and 59 years of age. This ensures your earning and loan repayment capability in time.
- Do you pay your taxes regularly?
You have to be registered with the Indian Government as a taxpayer, and you have to produce a photocopy of your PAN card to prove your eligibility.
- Submission of KYC documents
For availing an engineer loan, it is essential that your identity is authentic. So, they will require your KYC documents, which consist of a PAN card, Aadhaar card, Voter ID, phone bills or electricity bills. These will also vouch for your address to establish that you are an Indian citizen.
Other criteria to make you eligible for credit:
Besides the ones mentioned above, there are certain other things which a lending institution considers while approving an engineer’s loan application.
- Keep an eye on your existing loans:
Look out for your existing personal loans or credit card loans. Having multiple loans in the market would most likely reduce your chances of loan approval. So, make sure to clear those with timely repayments.
- Your earnings or income plays a significant role
Whether your earnings are variable or constant is a critical issue for the lenders to evaluate your eligibility.
- Your CIBIL report must be clean
Before applying for a loan, it is a must to check your CIBIL score. If you find any errors in the report or any discrepancies in your credit history, make sure to clear those at the earliest and get a clear credit report. Also, if you have any existing debts in the market, make sure to clear those too as debts largely impact your CIBIL score. Remember, you need to have a score of 750 or above to be eligible for an engineer loan.
Once you meet all your eligibility criteria, next you need to consider the engineer loan interest rate. Learn how to find the best interest rates and save more on your investments.
Now you know where to start from and what to do. So, what are you waiting for? Apply for an Engineer Loan today.
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