With more engineers turning into entrepreneurs, the job market and India’s economic growth drivers are changing. Surveys show that approximately 83% of the Indian youth population prefer to be business and growth generators than employees.
Post liberalisation, the growth dynamics in India changed. Liquidity became more easily available and stock markets boomed. Capital outlay expanded. Loans became cheaper. The brightest minds of tomorrow are taking business loans for engineers today to build their firms.
When used properly, a loan can help ease many business problems. From paying off outstanding debts to buying and investing in modern technology, these loans can provide multiple financial solutions. Most importantly, it helps new companies fight capital shortcomings initially.
How does a business loan for engineers help?
There are several ways to use a business loan for engineers. Some are as follows:
Increase manufacturing capability: Any manufacturing firm requires adequate working capital to expand existing production capabilities. Upgrading machineries also help in increasing production. When manufacturing is high, revenue generation and profits rise. A business loan for engineers can help funding the required upgradations of your machinery.
Optimise working capital with credit: Working capital needs constant injection of funds. If your business faces a shortage in working capital, you can take a loan for engineers. It will provide short-term liquidity and ensure that the cash crunch does not hit you too hard.
Pay off existing dues: A business loan can be utilised for paying off all existing dues, settling employee salaries, and clearing off other financial liabilities.
Upgrade inventory and management: Inventory management is something that modern management schools emphasise on when it comes to running a business. A well-maintained inventory is also a wise decision to streamline operations.
Implement better business ideas: Engineers-turned-entrepreneurs need to think for the future. They cannot let short-term crisis situations stop them. A business loan for engineers helps them make plans execute them for a more profitable future.
Rise of business loans in India
Along with other types of advances, the demand for business loans also increased. Lenders like Bajaj Finserv have made availing such loans easier and less time-consuming with their pre-approved offers.
Eligibility criteria
For salaried engineers, they must be within 25 and 59 years of age. If you are self-employed engineers, you must be within 26 and 65 years of age.
Salaried engineers must have 3 years of work experience while self-employed professionals must have 3 years of experience in running a business. Both the types can avail professional loan.
Documentation required
Documentation needs are very minimal. Both salaried and self-employed engineers must present their:
- KYC details
- Engineering degree certificates
- Last 3 months’ bank statements
- Multiple passport sized photographs
Engineers who receive salaries from a full-time job must show their salary slips from the last 3 months. Self-employed professionals must show that their businesses have at least 3 years of vintage.
Remember that you can get a low engineer loan interest rate when you have no outstanding debts and a high CIBIL score. In case you do have any past loans, pay them back before applying for a new one. Never leave any documentation details incomplete or provide insufficient data. Invest in your business with an eye towards the future.
