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What makes Engineer Loans score over other financing options for your business

  • Highlights

  • Easier and quicker to raise funds than bootstrapping

  • Gives more funds than borrowing from friends and family

  • Gives you complete control as opposed to venture capital

  • Affordable and easy to repay as compared to MCAs



No matter what stream of engineering your business falls under, it needs sufficient financing, be it for meeting daily operation costs, expansion or diversification or purchase of equipment. For example, if you are an environmental engineer with a company that designs low-cost water harvesting and waste water-recycling solutions for other firms, you will need funds for a variety of purposes. From carrying out research and testing prototypes to funding working capital while you’re in the research phase and trying out different materials, you will need an infusion of funds every step of the way. In such a scenario, Bajaj Finserv’s Engineer Loan is just what you need. To understand why this loan is better than the other financing options available to you, here’s a look at how its features, and how they compare to other business financing options.

1. Engineer loan vs. bootstrapping: Ease of access

Assume that you are considering bootstrapping as a way of financing your business. While this option is safe as your plough your own savings and revenue back into your business, it is far from ideal. This is especially true if you’re looking to meet high targets and achieve measurable growth in a short span of time. Since you only have access to limited funds, it will take you a long while to generate enough money to implement a growth plan, for example, or fund expensive research..

In such a scenario, Bajaj Finserv’s Engineer Loan is better, as you can apply for it instantly and get approval in just 48 hours. This way, you don’t have to wait to accumulate funds to pursue an opportunity

2. Engineer loan vs. friends and family: Value of loan

Taking a short-term loan of Rs.50,000 from your family to pay a vendor is one thing, but to get funds to maintain smooth cash flow, fuel growth and finance every aspect of your business is another. While you can approach friends and family members to loan you money, Bajaj Finserv’s Engineer Loan will certainly offer you access to a higher amount of credit. Also, mixing personal relationships with business is risky, as it can lead to conflict later on. In this regard, an engineer loan is structured, bound by terms and conditions and has no room for ambiguity. It keeps personal relationships at bay and a single loan offers you funds in proportion with your requirements.

3. Engineer loan vs. venture capital: Degree of control

Venture capital may seem like a good source of finance but remember that it comes with two conditions. First, will have to give up a part of your decision-making power to the venture capitalist. Secondly, a portion of your equity may go to the venture capitalist after a fixed period of time has passed. And so, Bajaj Finserv’s Engineer Loan is better suited to your firm. You can simply make use of the loan amount without worrying about giving up control over decision-making, or sharing profits with a third person. Secondly, this loan is collateral-free, which means you don’t have to risk personal or business assets to get the money.

How to apply for an Engineer Loan

Eligibility For an Engineer Loan

Factoring in your engineering degree, a Loan for Engineers is easy to qualify for.

Eligibility for an engineer loan

4. Engineer loan vs. merchant cash advance: Ease of repayment

Merchant cash advances (MCA) may seem like a quick way to access funds against future debit and credit card payments. But in reality, this option is far from ideal for your engineering business. This is because merchant cash advances carry a very high of interest and have a stringent repayment schedule. On the other hand, Bajaj Finserv’s loan has a nominal rate of interest and a long tenor of up to 60 months, both of which help lower your EMIs and make repayment convenient. Besides, you can access this loan for engineers just as easily.

Besides these benefits, Bajaj Finserv’s Engineer Loan also offers the following advantages:
• Flexi Loan facility to withdraw funds as you need
• Access to funds without pledging collateral
• Online application and loan management
• Easy eligibility criteria and minimal documentation
• Access to pre-approved offers

So, it is easy to see that while there are several ways to finance your engineering business, if you want a high loan amount, low interest rate, flexible repayment tenor and complete control over your business, Bajaj Finserv’s Engineer Loan is the option that checks all the boxes.

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