An engineer’s personal finance can take a hit due to inflated medical bills. Over the years, healthcare expenses in India have gone up by leaps and bounds. Settling medical bills with one’s savings isn’t financially prudent as such a move can affect essential life goals.
In such a scenario, engineer loans can come handy. If you are an engineer scouting for loans to settle your medical bills, here’s a help:
1. Know your options
Before applying for a engineer loan, it’s imperative that you know your options. While banks were the primary lenders back in the day, the entry of non-banking financial companies (NBFCs) in the loan space has made things exciting as well as competitive.
You can approach an NBFC for the required funds. Lending norms, in the case of NBFCs, are a little relaxed as compared to banks. You can also check out the various products from multiple lenders online, on loan aggregator portals.
2. Have a good credit score
Credit score plays an essential role loan in the loan approval process. A three-digit score (ranging from 300-900), it reflects your creditworthiness to potential lenders. Generally, a score above 750, is considered good, as it helps to expedite the loan approval process.
Engineers can increase their CIBIL score with these simple steps:
- Pay outstanding bills and EMIs on time
- Keep credit utilization ratio low
You can check your credit score from any of these credit information companies in India:
- TransUnion CIBIL
- High Mark
There are many third-party websites which allow you to check your credit score for free, by entering your name, mobile number, PAN, date of birth and email.
3. Opt for a professional engineer loan
The loan market in India is witnessing some decisive changes. The market is abuzz with a flurry of professional loans, including the ones for engineers. An ideal way to settle your medical bills is to opt for such a loan, which not only offers a high loan amount but also comes with a flexible repayment tenor.
For instance, NBFCs offers Personal finance for Engineers up to Rs. 25 lakh that requires minimal documentation. This collateral-free loan is approved within 24 hours and comes with a Flexi Loan Facility, that allows you to make withdrawals as and when required from within the approved loan limit. Also, this facility lets you pay interest only on the amount borrowed and not on the entire limit, thus keeping your EMIs well within your budget.
Quick disbursal of the sanctioned amount makes it an ideal bet to pay off your medical bills. You can apply for a Loan for Engineers online and upon successful validation, get the required amount directly into your bank account. As the loan is explicitly targeted towards engineers, the eligibility criteria are simple to meet. Also, pre-approved offer on the loan makes it easy to avail finance.
4. Have all the documents
To help loan underwriters in quick and better risk assessment, make sure to have all the required documents in place. Generally, you need to submit:
- KYC documents
- Bank statement of the previous few months
- Salary Slips
- Passport-size photograph
Lenders can also ask for additional documents such as your engineering degree certificate or income tax returns. Generally, they convey about any additional documents required beforehand.
Before availing the loan, make sure to read the terms and conditions thoroughly and understand the various associated charges and penalties. Since the loans are collateral-free, the interest rate is on the higher side. Opt for a lender who gives you the loan on flexible terms and conditions with easy repayment options.