Congratulations on your decision to apply for an engineers’ loan! An engineers’ loan with leading non-banking finance companies (NBFCs) lets you avail a loan up to Rs.15 lakh.
If you have a business firm with five years of vintage and willing to expand it further, a professional loan for engineers can help.
Let’s quickly let you know some features and engineer loan eligibility and how selecting a tenor could affect the burden of repayment.
Engineers’ loan – A quick glance at the features!
Leading non-banking finance companies (NBFCs) consider engineers as a responsible section of borrowers who should be given funds to strengthen their firms. The loan for engineers has these features such as:
- Loans up to Rs.15 lakh – Lenders know that you may have the need for a large amount and that’s why they provide a large amount up to Rs.15 lakh.
- Reduced engineer loan interest rate – A higher rate of interest of your engineer loan can affect your loan repayment burden. Hence, leading creditors lend you at an affordable rate.
- No need to provide collateral, security or guarantors – If you have the required eligibility criteria for engineers’ loan, you don’t need to provide any collateral.
- Flexi loan facility – You can withdraw an amount as per your needs and pay only the interest as EMIs. Rest amount gets settled after the completion of the tenor.
- Online account access – You can manage your loan details, the amortization schedule and more from your comfort online.
- Quick approval in 24 hours – Once you submit the online application of your engineers’ loan, it is approved within 24 hours.
- Quick money disbursal in 72 hours – Once your application is approved; the loan money gets credited to your account in 72 hours.
- Flexible tenor options – You can opt for a flexible tenor to repay your loan, meaning you get the freedom to control the loan as per your affordability and convenience.
Here’s how a selection of a loan tenor can affect loan repayment burden!
- Short tenor – Selecting a short tenor will help you pay off the engineers’ loan or any other loan without having the burden of it for a longer period. It means that when you repay the loan quickly, you will be able to concentrate on other financial goals of your life. Yes, you will have to pay a higher engineer loan EMI, but that will help you reduce the principal amount quickly, and it will reduce the interest rate as that’s calculated on the outstanding figure. Thus, if you have the resources, opt for a shorter tenor in all prospects.
- Longer tenor – A longer helps you pay off the professional loan for engineers over a long time which means paying smaller EMIs and may help you manage monthly costs. However, you will have the burden of the loan for a longer time, and you won’t be able to focus on other life goals. Even though you will pay smaller EMIs, you will end up paying more interest as your principal won’t get reduced with a lower EMI payment. It is because lenders calculate the interest on the remainder of the loan principal. You should go for a longer tenor only when you don’t have means to put in more EMIs.
The Bottom Line
Now that you know the features of an Engineers Loan and how the tenor selection may impact the repayment, you are in a better position to manage it with confidence. Happy engineers’ loan management!