Important Considerations to Remember When Opting for Engineer Loans

The Indian manufacturing industry has been plagued by lack of financing. Nowadays, more and more number of engineers are venturing into the manufacturing business. Realizing this, a large number of financial institutions who have begun offering tailor-made monetary schemes to help engineers expand their businesses.

One such monetary scheme is the engineer loan which is made for both salaried and self-employed engineers. However, there are certain factors that a borrower needs to remember before opting for any finance for engineers so that they are able to properly utilize and repay back the loan in due time.

Some of these considerations have been mentioned below - 

Eligibility Criteria

Ensure that you check your eligibility criteria before opting for the loan. There are a number of loan eligibility calculators which can help measure your creditworthiness. This tells you how much money you can avail as loan by taking into consideration your monthly income against your fixed liability.

Apart from this, there are certain other eligibility criteria that needs to be fulfilled such as being between 25 to 65 years of age and having a minimum of three years of work experience if salaried or 3 years of business vintage if self-employed.

CIBIL Score

This is another important criteria that every applicant needs to be aware of. The CIBIL score is a three digit score that is a reflection of your financial history. Lenders usually prefer applicants to have a score of 750 or above as this indicates a history of repaying loans on time. Furthermore, you may also get to negotiate the interest rate for your engineer loan if your CIBIL score is good.

To know more factors, read here: A complete Guide for Taking and Repaying a Loan for Engineers