Personal loan is growing day-by-day in India. These are being offered to different individuals with different income. There are also personal loan for salaried engineers available which are tailor-made to suit their needs. Various financial institutions like banks and NBFCs offer these loans. They can avail a loan up to Rs 25 lakhs and Engineers from Computer Science, IT, Civil, Mechanical, Electronics, Electrical or any other specialisation can avail this loan. This could be used for meeting various expenses like home renovation, family events, vacations, education of the children, medical emergencies, etc. However, there are several myths related to these loans and let’s see here about them.

  • Myth 1 is that these loans take a long time to process

However, the reality is that they get processed within 24 hours. The application can be submitted online, only minimal documentation, quick verification processes ensure that all these are done in a shortest period of time.
  • Myth 2 is that only Government backed financial institution offers these loans

Actually, both private and public sector financial institutions offer personal loan for salaried engineers based on their eligibility. Of late, many NBFCs also offer these loans.
  • Myth 3 is that personal loan affects the credit rating
You only need to handle your credit responsibly. The credit rating will improve only when the borrower makes timely repayment, do not default on the debt and keep their FOIR within the limits (30% to 50%).

  • Myth 4 is that one can apply for another loan if the request is rejected

An applicant should wait for 6 months before they apply for a new credit if they think they have engineer loan eligibility. Then the financial institutions issue an enquiry to the credit bureaus. But if you make too many requests then it will show you too hungry for the credit and your application might get rejected.
  • Myth 5 is that these loans come with the highest interest rates
Personal loans will have a competitive interest rate and will be higher than the secured loans but lesser than any other type of unsecured loans.

The major advantage of these personal loans for engineers is that debt consolidation and it will reduce the total payable amount. However, engineer loan eligibility must be met to avail these loans. So, they should understand these myths before going in for these loans.