Professional Loan for Engineer/Architect

For starting and expanding their business or practise, professionals including architects, engineers, doctors and others are offered professional loans. These loans are granted on the basis of their qualifications, experience, track record, income, and reputation. 

You can buy a licence of expensive software like AUTOCAD, install printers and other computer attachments in your workshop, or even pay your IT technicians with the borrowed money. Here, you will learn everything about a professional loan for architects and engineers. 

What are the Interest Rates & Charges for Engineers & Architects Loans?

Professional loans for engineers can be availed at interest rates as low as 10.85%. In addition, these schemes do not require any collateral. With its help, an architect or engineer may upscale their business or purchase any equipment that is necessary for their profession. 

While applying you need to bear a processing fee that generally stays within 2% of the entire borrowed sum. If you are requesting a loan from a non-local lender then you must pay Rs. 65 (exclusive GST) as outstation collection fees. Moreover, there is no provision for annual maintenance charges if you have applied for a term loan. Whereas, if you fail to meet the timely repayments you may need to bear part prepayment charges. It is 2% of the EMI amount plus applicable taxes for term loans.  

How to Apply for an Engineers & Architects Loan?

The application process for applying for a professional loan for architects and engineers is mentioned below:

• Step 1: Visit the application section on the lender’s website.

• Step 2: You get redirected to a fresh page. It gives you a loan application form.

• Step 3: Provide your employment details, income proof, age, and contact information.

• Step 4: Enter the loan amount you wish to borrow. Please note that the entered sum should fall under the approvable limit.

• Step 5: Select a favourable tenure.

Now, you have to wait for the loan approval confirmation text. Once you get the message you can check for the credited balance which will be transferred to your account within a few minutes. 

What are the Eligibility Criteria for an Engineers & Architects Loan?

The eligibility criteria for professional loans are kept pretty simple. Lenders set these credentials keeping in mind the hectic schedule of engineers and architects who primarily seek loans to assume better career opportunities. 

Here you may check out the key eligibility criteria:

• Age-wise you should not be above 65 years or below 25 years while applying for a professional loan.

• You need to be an Indian resident.

• You must be able to showcase a professional diploma or degree in your current job field.

• The loan applicant must be a non-salaried individual.

Besides the above conditions, different lenders set their prescribed gross receipt criteria. For instance, Axis Bank has declared to offer professional loans to self-employed engineers with a minimum of Rs. 5 Lakhs gross receipt proof.

What are the Documents Required for an Engineers & Architects Loan?

The comprehensive list of documents for a professional loan for architects and engineers are given here:

• Address proof (Aadhaar card, Passport, Voter ID card)

• Identity proof (Aadhaar card and Passport)

• Bank statement of the preceding 6 months

• PAN card

• Proof of continuation (Trade licence, Establishment certificate, ITR, Tax certificate, etc.)

• CA-audited balance sheet, profit and loss account, and latest ITR

• Miscellaneous documents like Sole Proprietary Declaration or Partnership Deed’s copy (certified), Director-verified true copy of Memorandum, etc. 

What are the Features & Benefits of a Professional Loan for Engineers & Architects?

Professional loans are combined with several helpful features that aid engineers and architects to settle repayments easily. Here you may take a look at all the associated benefits:

• Easy Application Procedure

As mentioned above, you can execute the loan application process swiftly completing the 5 steps. Also, the requisite documentation is limited which makes the process hassle-free.

• Unrestricted Disbursal

Provided you have matched all the criteria and presented the documents, your loan request gets approved without any hindrance. After the confirmation text arrives, the principal gets credited to your bank account within 24 hours.

• Flexible Tenure

You can repay the loan at your convenience. The tenure can even be stretched up to 96 months. Also, you may prepay the outstanding amount sooner bearing 4% prepayment charges. 

• No Collateral

Professional loans do not mandate pledging any collateral. All you must ensure is having a good credit history, a spotless professional track record and meeting the other eligibility criteria.

What are the Different Types of Professional Loans?

In India there are basically five different types of professional loans:

• Engineer and Architect Loan

Architects and engineers who do not work within an organisation find it very difficult to meet their financial objectives at times. That is why banks and NBFCs offer tailored credit facilities to these individuals. Taking monetary aid they can set up their own startup and bring in collaborative innovations as well. 

• Doctor Loan

Doctors rely on professional loans as these schemes are well customised to suit their busy schedules. The application process remains pretty simple and there are almost no restrictions on the end usage of the borrowed amount.

• Consultant Loan

Management and financial consultants are eligible for professional loans too if they meet the set criteria of their preferred lender. Generally, if you are willing to start your own consultancy, you may require a loan when you are starting off. 

• CA/ CS Loan

Chartered Accountants and Company Secretaries get tremendously customised loan deals that help them kick-off their independent careers at a decent pace. The best part is that often, like other professional loan types, these deals are also collateral-free and come at competitive interest rates. 

• Lawyer Loan

Lawyers can apply for professional loans to arrange for funds that will be used to buy office furniture, pay off academic fees, etc. These loans are generally collateral-free and come with attractive add-on features. 

What are the Top Banks Providing Professional Loans for Engineers & Architects?

In the table below you can compare the various loan deals offered by top Indian banks and NBFCs:

Disclaimer: The metrics shared in the above table is as per latest reports collected from the official websites of the respective lenders. However, they can change anytime, thus it is advised to check the particulars before applying for a professional loan.

A professional loan for architects or engineers is ideal for meeting expensive IT hardware and software bills, organising mergers, or even funding individual needs. People with a minimum work experience of 5 years easily get pre-approved loan offers with flexible repayment tenures. However, before selecting an offer online, ensure to check the various options and go with a lender that has gained prominence in the market.