Engineer loans can provide you numerous benefits while helping you finance all your professional requirements. But, for your loan application to be approved, it is important to ensure that you match the eligibility criteria. This will help your loan get approved quicker and will also help you secure a lower rate of interest.
1. You should be a self-employed or consultant engineer
- You can apply for this loan if you have your own engineering firm, or if you work in the capacity of a consultant with another firm.
- In case of the latter, you must submit documents such as a letter of employment and salary slips.
If you’re an engineer and entrepreneur, you can submit your company’s registration document.
2. You should have the necessary work experience
-It is important for you to be skilled as an engineer and have some amount of experience in the field of engineering.
-This means that you must have at least 3 years’ experience as a self-employed engineer, along with 5 years’ of vintage experience since the time of graduation.
-This enables the lender to gain security that the loan being given is to a capable engineer and eliminates the risk of fraud.
-To prove your eligibility here, you will have to submit business vintage for a period of 3 years, along with a certificate of practice.
3. You must have the necessary qualifications
- To qualify for this loan, you must be an engineer with a valid engineering degree.
- You must also be self-employed at the time of applying for an engineer loan.
- To validate your credentials, submit the certificates that you have received at the time of completion of your engineering degree.
- This will include your certificate of graduation and supporting mark sheets.
4. You should have a duly filled form
- Filling the form with authentic and accurate details is the primary requirement for being eligible for an engineer loan.
- It is important to be cautious when filling up this form. Avoid making any errors as this ensures that your application is not rejected.
5. You should have the relevant KYC documents
- KYC documents are essential as they authenticate your identity.
- They consist of all your documents like Aadhar card, PAN card, voter’s ID, electricity bills and/or phone bills.
- These documents help vouch for your identity, address and establish you as an Indian citizen as well.
6. You must be a taxpayer
- To apply for this loan, you must be a taxpayer registered with the government of India.
- You have to submit a copy of your PAN card to meet this eligibility requirement.
7. You must be of the right age
-To be a candidate for this loan, you must fall between the age bracket of 25 to 65 years.
-This age bracket is to assure lenders of your earning and repayment capacity.
As long you meet these criteria when filing your application, a loan for engineers can be easy to secure, and can help you tackle all your financial hassles. Once you have all the documents ready, apply for a Loan for Engineers with Bajaj Finserv and gain from benefits like quick application, instant approvals, flexi loan, wide tenor, nominal interest and more.
The Goods and Services Tax aims to reduce the number of indirect taxes and unify the Indian market. Though it was implemented midway in the last financial year, it has its fair share of proponents and critics. Here’s a look at the advantages and disadvantages associated with GST.
1. Advantages of GST in India
- GST has brought together a number of indirect taxes under one umbrella, simplifying taxation for service and commodity businesses.
- Experts believe that costs of products and services will be reduced in the long run with the introduction of GST. This is because the cascading effect of a series of VATs and taxes has now been erased.
- Service provider companies with a turnover lower than Rs.20 lakh are exempt from paying GST. In case of North Eastern states, the threshold is at Rs.10 lakh. This will help the small businesses avoid lengthy taxation procedures.
- Companies with a turnover up to Rs.75 lakh under the GST taxation process can benefit from composition schemes and pay only 1% tax on their turnover. This will help them follow a simplified taxation process.
- GST is aimed at reducing corruption and sales without receipts.
- GST reduces the need for small companies to comply with excise, service tax and VAT.
- GST brings accountability and regulation to unorganised sectors such as the textile industry.
- With GST replacing multiple state and central taxes, the tax collected is likely to be distributed across the country, providing funds for development to the developing or underdeveloped pockets in India.
- GST has reduced taxes on certain goods by 2% and others by 7.5%, such as smartphones and cars.
- GST brings uniformity in the taxation process and allows centralised registration. This gives a chance to small businesses to file their tax returns every quarter via an easy online mechanism. This reduces the multiplicity of taxes as they do not have the resources to hire tax experts.
- GST reduces logistics cost by eliminating border taxes and resolving check-post discrepancies. A 20% price drop in logistics cost for non-bulk goods is clearly an expected outcome.
- GST points toward a positive impact on India’s GDP. It is expected to increase by at least 80% within the next couple of years.
- The possibility of tax evasion is minimised completely with GST coming into action.
Additional Read:How to Register for GST
2. Disadvantages of GST in India
-Increased costs of software purchase that can assist in GST filing process leads to higher operational costs for many businesses.
-GST has given rise to complexity for many business owners across the nation. SMEs with a total income of Rs.75 lakh could avail the composition scheme, pay a mere 1% tax on turnover and abide by less compliances; however, the trade-off is that they cannot claim credit for input tax.
-GST has received criticism for being called a ‘Disability Tax’ as it now taxes articles such as braille paper, wheelchairs, hearing aid etc.
-The complexities in taxation for products have seen manufacturers suspend their reward programs, which are sure to affect consumers.
-The GST transaction fees within the financial sector have become more expensive increasing from 15% to 18%.
-With GST, insurance premiums have become more expensive.
-The impact of GST on the real estate market caused an 8% increase on real estate price leading to 12% fall in demand closely after it was brought into action in June, 2017. This however, may be a short-term trend.
-Petrol is not under GST, which goes against the ideals of unification of commodities.
Additional Read:How To Calculate GST
The impact of GST is profound and affects different areas of the economy differently. Depending upon the sector you work in, GST has its own advantages and disadvantages. In the long run, we are looking at lower inventory costs that will benefit the economy on the whole.
If you’re looking for small business finance, you can get instant money in bank with 1-step verification with a pre-approved offer on Bajaj Finserv Business Loan up to Rs.20 lakh. All you need to do is enter a few details and check your offer.
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