4 Tips Troubled Borrowers Can Use to Repay An Engineer Loan

 Anuj Pandey
  Mar 07, 2018

Whether you have already taken an engineer loan or are looking to avail one, there is a way to make repayment easier on yourself. A simple conversation with your lender, for example, can result in an extension of your tenor, which makes your EMIs more affordable. Some lenders may offer you an EMI holiday to better manage your finances. Moreover, you can choose to make part prepayments carefully in order to reduce your loan principal and thus pay less interest on your engineer loan.

Since experiencing ups and downs in an engineering business is common, which makes your purse strings tighter, here are a few measures you can take to repay an engineer loan with ease:

Select a longer tenor or choose a Flexi Loan facility

Assume that you are a video game developer. Given the nature of the business, you will need a lot of time to research and come up with an idea, develop the characters, design the visual look of the game and develop the story. Apart from this, you will also need to hire people to work on the design, graphics, programming, coding and developing the physics engine. All these aspects require finance. In such a case, your company may not have sufficient sales revenue to fund all these activities simultaneously. So, an Engineer Loan may be an ideal way to finance your business’ working capital. However, repaying your loan may become difficult, given that you haven’t earned anything from your new game yet. So, you can choose a longer tenor. This reduces your EMIs and thus reduces your monthly repayment obligation.

When you apply for an Engineer Loan from Bajaj Finserv, you could also opt for a Flexi Loan facility. This allows you to make as many withdrawals as you want and pay interest only on the used amount. You can also pay only the interest as EMIs, thus reducing your monthly finances even further. You can pay off your principal at the end of the tenor. So, you can select a tenor that coincides with when your game is launched and you start earning revenues from it to be able to repay the loan.

Avoid over-borrowing:

Given the expenses associated with the production and development of a new video game, it is easy to give in to the temptation to over-borrow. But, this is something that you must avoid at all costs. When you over-borrow, your outstanding balance is higher and so, your EMIs will be expensive too. To arrive at the right loan amount, create a budget of the various expenses associated with your engineering business. This will give you a clear idea of how much you can borrow in line with your repayment ability and current business income.

Go for a lender with nominal rate of interest:

This is the primary factor to consider when borrowing a loan for a big project. Game development requires lakhs of rupees to complete from start to finish. If your loan has a high interest rate, the repayment will become cumbersome. So, it is important to perform a thorough research of the market, before you decide on borrowing a loan customised for engineers. Review the various rates of interest offered by lenders and select the financial institution with the lowest rate of interest for engineer loan. This will make EMIs of your loan much more affordable and will significantly reduce your debt obligation.

Make it a point to make part prepayments on your loan:

Prepayment of your loan can significantly reduce your EMI burden. You can usually make part prepayments after your first EMI as long as the amount you prepay is more than that of 3 EMIs. These rules may differ from lender to lender, but it is in your best interests to find a lender who levies the least or no charges on part prepayments. Making prepayments reduces your principal, which in turn reduces your EMIs. When you have surplus funds, use them to make prepayments rather than spending them frivolously. This will help you pay off your engineer loan quicker too.

The Bajaj Finserv Flexi Loan for Engineers offers you the facility to make multiple part prepayments on your loan, so that you can pay the loan back in portions as you have extra cash on you. The best part here is that you don’t pay any charge on making such prepayments.

Implement these strategies to repay your loan, and make the process more convenient and hassle-free. Not only will these tips help you save money, but they will also help you clear your debts faster and allow your business to build a good credit history.

4 Tips Troubled Borrowers Can Use to Repay An Engineer Loan

Anuj Pandey

Anuj Pandey is an experienced financial advisor and writer who is well known for his ability to market trends as well as for his financial knowledge. He has worked extensively in the finance sector and also written numerous blogs on finance and startup etc. and how they affect the customer in the present market scenario. He has done MBA in finance. Anuj has also amassed a great name for himself as a financial blogger.

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