How to Get the Best Engineer Loan Without Damaging Your Credit Score?

An engineer loan gives you instant access to liquidity to install new machinery, implement upgraded technology and consolidate existing debt, among others. While the loan amount, tenor, interest rate, etc., is crucial to factor in while availing this loan, equally essential is to ensure that the entire process doesn’t damage your credit score. A healthy credit score is a gateway to availing future loans. So, what’s the way to ensure getting a loan for engineers without damaging your credit score? Read on to find the answer.

  1. Avoid multiple loan applications

A common tendency among most borrowers is to make multiple loan applications. They believe that multiple applications will enhance their chances of availing the loan. Though fundamentally, there’s nothing wrong in it, it is essential to keep in mind that almost all financial institutions follow a set of pre-defined rules while reviewing a loan application. The underwriting team takes in to account your credit score, cash inflows and current liabilities while scanning your application.

Also, with KYC documents being similar across organisations, it’s easy to track where you’ve applied for a similar loan. Multiple applications show you as a credit hungry borrower, which can negatively affect your credit score. Additionally, with lenders using advanced analytics to gauge engineer loan eligibility, a rejection from one lender can be easily tracked by the other. So, it’s important to avoid multiple loan applications and wait for a while before approaching a second lender, in case of a denial by the first.

  1. Opt for a loan with competitive interest rate

With loan aggregator websites, you can compare various engineer loans from different lenders, all at one place. One of the essential considerations is the rate of interest. A high engineer loan interest rate will push up the monthly EMIs, thereby putting pressure on your existing finances. It also increases chances of a loan default, which will dent your credit score.

Therefore, it’s important to opt for a loan with a competitive interest rate to ensure the EMIs are within your budget. Note that an engineer loan, on most occasions, is an unsecured mode of finance, where you don’t need to pledge any asset as collateral. This pushes up the interest rate to a certain extent.

  1. Go for a flexi loan facility

An engineer loan with a Flexi Loan facility is a great way to reduce EMIs, thereby reducing chances of a default and subsequently preventing damage to your credit score. Loan for Engineers (Personal and Business) from Bajaj Finserv offer this unique facility wherein you can make multiple withdrawals as and when required from your approved loan limit. Also, interest is charged only on the amount utilised and not on the entire loan limit.

For instance, if you use only Rs.10 lakh from the approved limit of Rs.15 lakh, you need to pay interest only on Rs.10 lakh and not on the entire Rs.15 lakh.

This reduces your EMIs, thereby reducing the chances of a default. In the process, it prevents your credit score from taking a hit. Also, it results in savings in the long run which can be utilised to address personal and business needs. You can prepay at no extra cost when you have financial surplus.

With pre-approved offers from Bajaj Finserv on various loans, availing finance is simple and hassle-free. No long queues and lengthy documentation. Everything is done for you. Know your pre-approved offer by sharing a few basic details.