An engineer loan can help one meet various expenses, both personal and business. Both salaried and self-employed individuals can avail these professional loans with minimal documentation.
Although a lot of research goes into choosing the right loan provider, not nearly enough is said about how to go about it after one has taken the credit.
The continuing consequence of taking an engineer loan is the liability to pay it back in time. It is a process that starts from the month immediately following the one that you received your loan. There are several things to consider which can arguably make this process much smoother for you.
- Never miss your due dates
Once the loan cycle begins, you’ll be issued a fixed date by which you have to pay your EMIs every month. It is critical that you never miss this date as it will have a negative bearing on your credit history. If you fail to pay your EMIs for several months in a row, the financial institution may declare you a defaulter and take legal actions against you.
- Make part pre-payments to avail additional benefits
If you run into some extra money during your professional loan tenure, you may use it to make part pre-payments. It is nothing but repaying a higher amount than your EMI, which will eventually reduce your outstanding loan amount. Typically, you have to pay at least three times the EMI amount to make it count as a part pre-payment.
There are numerous advantages of part-prepayment that can make your repayment process even more convenient. Depending on how much you part pre-pay, either your tenor or the EMI will get reduced.
For example, let’s say that you took a loan of Rs. 10 Lakh for a tenor of 24 months at 16% engineer loan interest rate. Your EMI will amount to Rs. 48,963. Suppose you want to make a part-prepayment of Rs. 2 Lakh after the payment of your first EMI. Now, your revised EMI will be Rs. 42,097 for the same tenor. Or, you may have to pay the previous EMI of Rs. 48,963 for a reduced tenor of 19 months.
In essence, part pre-payment makes the entire process of repaying a loan for engineers much more convenient.
- Take advantage of Standing Instruction
Most NBFCs, Bajaj Finserv included, offer a service known as Standing Instruction which helps with the repayment of your engineer loan. Standing instruction is a method of making an automatic payment on a fixed date of every month. The amount you need to pay will be set beforehand. It will be directly linked to your savings or current account, and the payment will be made towards your loan repayment on a pre-set date.
If you are unsure about the efficacy of this service, you may also try one of the numerous debt management apps on your smartphone.
The advantage of Standing Instruction is that you don’t have to remember the date on which your EMI is due. It is especially beneficial for those who have a fixed source of income which is credited to them at a specific time of each month. Among the numerous advantages of taking an Engineer Loan from Bajaj Finserv, standing instruction is one of the foremost.
Another significant benefit of availing the financing option from this lending institution is that they provide pre-approved offers on various financial products such as personal loans, home loans, business loans, etc. Not only do these offers simplify the process of availing your loan, but they also help you save on time. All you have to do to check your pre-approved offers is share a few necessary details online.
These are some of the most crucial factors to consider after you take a loan for engineer. Timely repayment is your responsibility, and you should not falter in that under any circumstances.