Offering an instant flush of liquidity, an engineer loan is targeted to meet professional and personal needs of engineers. While salaried engineers can use it to meet wedding expenses, home renovation cost and debt consolidation among others, self-employed engineers can utilize this mode of finance to buy new equipment, meet working capital needs and make payments to vendors. Here are five ways in which you can enhance your engineer loan eligibility.
Maintain a healthy personal and business credit score
Before approving your loan application and disbursing funds, lenders look at your credit score. It reflects your creditworthiness and money-management skills. Paying bills and EMIs on time, making timely payment to vendors, keeping credit utilization ratio low on credit cards, etc., are some ways in which you keep maintain a healthy credit score.
A high score, above 750, paints you as a responsible borrower and increases your eligibility to receive an immediate finance for engineers easily.
Keep your current liabilities low
Keeping your existing liabilities low can enhance your engineer loan eligibility. Lenders are wary about lending to individuals and businesses with debt as it can affect repayment. Keeping your current liabilities may even qualify you for a higher loan amount.
Have a steady income/source of funds
To boost your engineer loan eligibility, it’s imperative to have a steady income. If you are a salaried engineer, you must have a certain level of income along with a few years of work experience. On the other hand, if you a self-employed engineer running your own practice, you must have positive cash flow along with a business vintage of a few years.
A steady and regular income goes a long way in convincing potential lenders about repayment. It also helps you in getting competitive engineer loan interest rates.
Don’t make multiple loan applications
Making multiple loan applications can hurt your chances for eligibility of engineer loan. Today, lenders use advanced algorithms for risk-assessment. Hence, it’s very easy for them to track multiple loan applications.
Making simultaneous application(s) may paint you as a credit-hungry borrower, bringing down your loan eligibility. At the same time, a rejection can dent your credit score. So, to enhance eligibility approach one lender at a time, and in case of a rejection wait a while before you apply again.
Have the necessary documents
Apart from your engineering degree, you need to have the necessary documents to boost eligibility. For instance, along with KYC documents and proof of income among others, it’s also handy to keep statements pertaining to your income tax returns.
Tax return statements are a credible source of information to lenders regarding income, revenues, and liabilities. You can know about all the essential documents from the lender’s website. Double-check and in case of any concerns, it’s better to call and ask the lender.
With these simple tips, you can boost your engineer loan eligibility and avail funds at better interest rates.