CRISIL estimates that the total market share of NBFCs will become 19 to 20% by 2020. Back in 2017, its share was 16% which increased from 13% in 2013. According to PwC, NBFCs have had a compound annual growth rate (CAGR) of 19% over the previous few years.
Government’s stress on the growth of SME and MSMEs is one of the reasons why NBFCs recorded such high growth. The 2019 Budget announced that small companies can now receive loans up to Rs.
1 Crore in less than 59 minutes.
Furthermore, NBFCs became more popular in the finance market owing to the diverse customised products they offer. For example, an engineer loan from NBFCs is one such product they provide to engineering professionals.
Helping you overcome the top challenges faced by an engineering firm is the primary objective of these loans. Business loans from NBFCs come with features and benefits that other financial institutions don’t usually offer.
Following are some reasons why you need these companies to finance your engineering business.
1. They can approve your loan within one working day
The quick approval of engineer loans is one of the reasons why engineers go with NBFCs for a loan. These companies can approve your loan within 24 hours.
2. They provide with high amounts of collateral-free loans
An engineer loan from NBFCs is collateral-free. They don’t require you to pledge an asset to avail the funds. Hence, there’s no risk of asset confiscation in case of default.
You can take up to Rs. 30 Lakh with an unsecured engineer loan. Invest this amount in any way necessary for your business.
3. They offer convenient short-term repayment tenors
The repayment tenors of engineer loans range from 12 to 60 months. Selecting the correct loan tenor is crucial as your EMIs and the total interest that you pay depend on it.
4. They need you to fulfil minimum eligibility criteria
You need to fulfil the following eligibility for engineer loan from NBFCs:
• Age between 26 and 65 years.
• A business with a vintage of at least 3 years.
NBFCs might also need you to hold a CIBIL score of at least 750. A credit score is mandatory to qualify for a loan for engineers.
Also, you may have to lower your monthly obligations before you apply. Some NBFCs may check your debt-to-income ratio or Fixed Obligations to Income Ratio (FOIR) before they approve your loan. The ideal ratio is below 50%. Pay your credit card debts and foreclose any existing loans to lower your FOIR. Doing so makes you more eligible for the loan.
5. They approve your loan against a few documents
You only need to produce the following documents for a business loan for engineers:
• Engineering degree certificate.
• KYC documents – Passport, Driving License, Aaadhar, Voter ID, PAN, etc.
• Bank account statements for the last 3 months.
• Any certificate to prove the existence of your business – Trade license, GST registration, Articles of Association, Memorandum of Association, partnership deed, etc.
6. They bring attractive pre-approved offers
NBFCs such as Bajaj Finserv bring pre-approved offers that save you time when availing loans by making the process less complicated. Pre-approved offers are available with business loans, personal loans, home loans, and an array of other financial products and services. You can check your pre-approved offer by submitting details like your name and phone number online.
Use a business loan EMI calculator to calculate your EMIs before you apply. This calculator also helps you to decide the tenor of your engineer loan from NBFCs.
You can also use a business loan eligibility calculator to check the loan amount you are eligible for. The calculator shows you the loan amount an NBFC can provide you depending on your income, net profit, existing debt, and other factors. So, approach a trusted NBFC to enjoy the best deals.
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