4 Golden Tips to Enhance Your Engineers? Loan Eligibility

Posted by Anuj Pandey on February 8th, 2018

Rahul Prakash was an engineer with five years of business vintage and now wanted to expand his business scale. For the same, he applied for a loan for engineers on a prominent lender’s website and hoped that his online application would be approved.

Much to his disbelief, he was sad to know that the lender had rejected his engineers’ loan application.

He rechecked their website for the engineers’ loan eligibility and found him suitable as he had five years of vintage expertise. He was unable to make out the reason for the rejection of his loan.     

He consulted his friend Faiz Ahmad in this regard who told him that he might not be fulfilling some general eligibility criteria.

Four steps to increase your engineers’ loan eligibility

Yes, if you have an engineers’ loan to apply, you should be following four golden tips to improve your eligibility such as:

1. Apply for a reasonable amount

Sometimes, not applying for a logical amount or a figure more than what you can repay can also lead to a rejection of your loan. Hence, always apply for a sensible figure to get your loan approved. Also, applying for more than what is being offered can also lead to an instant rejection from a lender.

2. Have a strong Credit Score

The first that your engineers’ loan lender while sanctioning your loan application is going to assess your Credit Score or CIBIL Score as that’s what proves your creditworthiness. If you don’t have a Credit Score that reads 750 or more, your loan may not get approved. Even if it gets approved, you may have to cough a higher engineers’ loan interest rate which will make it problematic to afford in the subsequent years. If you don’t have a good CIBIL Score, enhance it by paying all existing loan EMIs and credit card payments on time, every time.

3. Maintain a robust repayment history

Another thing that your lender will look whether you have managed your past repayments well or not! Yes, if you have not been consistent with your repayment history, your Engineers Loan may not be approved. Thus, make it a point to pay your entire loan EMIs and other overheads by their due dates.

4. Clear credit card outstanding and don’t max it

Sometimes, having too much credit card debt may also not help to finance for engineers see the green signal from your prospective lender. Thus, ensure to clear your outstanding debt on your credit card and if possible, don’t max out the credit limit. Lenders may put you in risk category because it may mull how you will pay for a new loan when you already have utilized the credit limit on the credit card.

The Bottom Line

Rahul Prakash gave Faiz Ahmad a patient hearing to know the above-discussed engineers’ loan eligibility conditions. He reworked on the discussed factors and applied again and bingo, his application was approved!