For any business to scale new heights, it must possess high-quality equipment and engineering is no different. In a highly competitive environment, access to the latest equipment is essential to enhance productivity and operations.
Buying new equipment warrants a considerable amount of fund and this is where tailor-made business finance for engineers, in form of loans, comes handy. This article tells you everything you need to know about engineer loan and its various aspects.
What is an engineer loan?
An engineer loan, as the name suggests, is a tailor-made loan dedicated to catering to the unique needs of engineers. The loan market in India has witnessed the launch of professional loans over the last few years and engineer loan is one among them. Several financial institutions, especially non-banking finance companies (NBFCs) have this product offering.
For instance, Bajaj Finserv offers Business financing for Engineers up to Rs. 30 lakh which you can use to buy new equipment for your business. The collateral-free loan ensures you don’t have to pledge any asset as security to avail it.
How this loan helps you buy the latest equipment?
- Large loan amount
Engineering equipment is costly. Depending on your line of business and the equipment type, the cost can range from a few lakhs to a crore. An engineering loan, with a substantial amount of funds, gives you the financial muscle to buy the equipment of your choice.
- Flexibility to use the amount as and when required
New-age Engineering Loan like the one offered by Bajaj Finserv comes with a Flexi Loan Facility, which gives you the flexibility to withdraw funds as when required from the approved loan limit. This means you don’t have to make multiple loan applications to withdraw funds.
Also, you need to pay interest only on the amount borrowed and not on the entire limit. This keeps EMIs low, thereby helping in easy repayment. You also have the option to pay only the interest component of the EMI and the principal at the end of the tenor.
This further reduces the EMI amount. This facility also helps you to meet any unexpected expenses that might crop up while buying the equipment. Also, with a pre-approved offer on the loan, availing finance is seamless and easy.
- Minimal documentation
When it comes to buying the latest equipment, the time consumed in documentation can be frustrating. However, when you apply for a business loan for engineers, there are very few documents which you need to produce to gain access to capital. You need to produce KYC documents along with proof of business vintage.
The checklist to apply for this loan is available on the website of the potential lender. In case of any additional documentation, the same is conveyed to you on time.
- Quick disbursal of funds
It’s not only the loan amount but also the time is taken for loan disbursal that dictates success. A delay in the arrival of funds can jeopardize the entire exercise. There have been cases where due to the late arrival of funds, machinery have become costlier.
However, tailor-made engineering loan with quick disbursal of funds ensures you can buy the required equipment on time. For instance, with Bajaj Finserv Business financing for Engineers, funds are credited into your account within 24 hours. Instant availability of funds ensures that you can buy the best machinery with an engineer loan.
With multiple lenders making this offering, it’s essential to go through the loan’s terms and conditions to know the various associated charges. Compare different products on parameters such as loan amount, the rate of interest and applicable tenor to make an informed choice.