4 Question You Must Ask Yourself Before Applying for an Engineer Loan - Loan Trivia

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Friday, 8 February 2019

4 Question You Must Ask Yourself Before Applying for an Engineer Loan

Even though the Indian government is constantly adding up more and more initiatives supporting the growth of the start-up culture in India, applying for business funding for engineers and getting approved is still a big decision.

The approval would depend on a lot of factors since even the government start-up funding initiatives either disbursed through banks or NBFCs would only fund engineer-turned-entrepreneurs having the potential to make it big.

Thus, irrespective of how good your business plan or revenue model is, you must ask these questions to yourself before applying for business finance for engineers.

Am I eligible? 

The first but foremost question is ‘Am I eligible?’ Your loan eligibility is not only based on conditions specified by the lender, but there are also other things such as your monthly earnings and repayment capacity, cash reserved in savings schemes, potential earnings of the business in future etc. You’ll need a business expert to analyse your business idea and tell you whether taking an engineer loan for a business is worth it.

Do I have all the relevant documents?

Once you know you’re eligible, you must ensure you have all the required documents - soft copies and the hard copies. All of it would be required at the time of applying irrespective of which mode of application you chose.

How much funding do I really need?

Even though a loan allows you to borrow a hefty amount, you should only take what you really need. To find out the answer to how much you need, list down your expenses and sum up the cost. Later on, apply for a loan.

Which financial institution should I opt for?

Last but most crucial question is who to approach for an engineer loan? You can go to banks or NBFC based on which one of the two is more credible and offering the loan at a lower interest rate.

To know more about how to apply for business financing for engineers, click here: Ask These 4 Questions Before you Apply for a Business Loan for Engineers

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