A business loan often becomes essential for both salaried and self-employed engineers for various needs. It helps raise money in a short time, aids entrepreneurs to develop their business, are available easily and easy to pay back. The Indian Government has also noticed the shifting trend of engineers turning to entrepreneurship instead of seeking jobs.
To help small businesses, the Government has introduced Mudra loans that various financial institutions disburse. However, a Loan for Engineers remains the most popular type of financing as it requires minimal documentation and is unsecured by nature.
Here are some of the advantages of applying for a business loan for engineers.
Some benefits of a business loan
Convenient and flexible to use:
Whenever you avail an engineer loan, you are assured of flexibility. Besides the public sector and privately owned financial institutions, the Government too has schemes like the CGTMSE. The scheme has been designed keeping in mind the SMEs in India and their business needs. Business loans availed via CGTMSE do not require any collateral. Also, several financial institutions, including reputed NBFCs, offer collateral-free loans with attractive features.
Bajaj Finserv, one of the prominent NBFCs, also brings pre-approved offers, specifically for their existing clientele. Borrowers can avail these pre-approved offers for business loans, home loan, personal loans and a range of financial products. Not only does it make the procedure less complicated but less time-consuming. Simply submit the necessary details online and check your pre-approved offer with ease.
Helps maintain business cash flow:
If you are a self-employed engineer owning a small business currently, you may consider seeking a business loan for engineers. Most small businesses face a severe financial crisis initially. It negatively affects cash flow as well as business credit. Here, taking a small loan is one of the best tips to manage your firm’s cash-flow.
Grow your business:
It is the ultimate goal of every business owner. An unsecured business loan can help to buy new machinery, employ fresh talent, use the latest technologies and also invest in modern tools to strategize like Business Intelligence Packages. When all these resources work in tandem, they make your enterprise run smoothly, increase revenue and maximise profit generation.
Easy to repay:
Many business owners believe that availing a business loan is expensive and unnecessary. That is a myth, however. In reality, NBFCs like Bajaj Finserv provide extremely competitive engineer loan interest rates. Besides, you can also avail flexible repayment tenors as per your ability and convenience. Also, since these are unsecured, there is no need for any collateral. When your business starts yielding enough revenues and profits, repayments will become even easier.
Under the existing Income Tax laws, there are certain sections which make repayment of outstanding loans using a small part of the profits exempt from tax. With the growing numbers of SMEs in India and more employment opportunities being generated by them, the Government may even increase exemption limits in the future.
Many small businesses make the mistake of asking venture capitalists or private funders to invest in their companies. However, what is not so well-known is that such investors demand a share of the profits as and when they are generated. Even angel investors may ask for a share of profits at some point in time.
Compared to that, taking a loan from financial institutions means that your organisation retains all the profits it generates. As the owner, you determine where the funds will be used.
Always ensure you meet the loan eligibility criteria before you approach a financial institution. It increases the possibility of getting your business loan for engineers.