Personal Loan

Can A Pre-approved Personal Loan Get Rejected?


Nowadays, most banks approve or reject loans within hours. This has made it easy to get a personal loan. You no longer have to wait for days to learn whether or not the loan has been approved. Most banks provide pre-approved personal loans to their existing customers, making it simpler for them to get a loan when needed. Hence, a pre-approved personal loan helps you borrow money quickly and simply without needing extra processing time or steps.

A pre-approved loan does not guarantee that you will receive one. Even your pre-approved loan can be rejected, and there may be several reasons for this.

What is a Pre-Approved Personal Loan?

As per the consumer’s history of on-time EMI payments, pre-approval examines their chances of being approved for a loan. Pre-approved personal loans are given so that people can take money without thinking about the approval process. If you have excellent credit and a history of timely loan payback, your chances of getting a pre-approved personal loan are higher.

Banks provide pre-approved loans to people who have paid their debt on time. They also look for people who deposit money regularly in their salaried accounts.

What are the features of a Pre-Approved Personal Loan?

When a loan is pre-approved, there is very little waiting involved. This is in addition to knowing about the loan’s status. Banks generally present different offers to their consumers depending on their prior dealings. But a few standard features of a personal loan that has been pre-approved are as follows:

  • Very easy and simple processing
  • Lower interest rates
  • Get the best offers from the bank

What could be the reasons behind the Rejection of a Pre-Approved Personal Loan?

Every bank has its own way, terms, and conditions for accepting or rejecting loans. Even if most banks and financial institutions do the same things—take similar paperwork and look for the exact things—it is not guaranteed that if one bank approves a loan, the other will also do the same.

The following are a few things that can cause your pre-approved personal loan to be denied.

Your Job Status

It has been seen that most banks only offer personal loans to people who have good earning capacity. They can be registered doctors, chartered accountants, employees for private offices, and those working for the government sector like central, state, and municipal governments. There is a very high chance that your loan application will be rejected if you don’t work in any of these jobs.

Another case is that the bank was made aware of a sudden job change after completing your paperwork. The bank may reject your pre-approved loan on those grounds.

Age Requirements

There are age requirements to meet to be eligible for any loan, whether pre-approved or not. The minimum and maximum ages are 21 and 60, respectively. If you were pre-approved but are now over this age, the bank may decide to reject your loan application if you do not qualify for the age limit.

The age restriction is set to ensure you can pay your instalments on time and don’t skip any repayments.


Pre-approved personal loans are given based on your past payment records, including your salary amount. When the loan was pre-approved for you, you may have been a very old client of your bank and made regular credit card payments.

Every bank has conditions about the least salary amount that must credit each month to get eligible for a loan. If by any chance, you have changed your job and the salary is less, the bank will have the option of rejecting the pre-approved loan.

Frequent change in Jobs

You can have a bank account where a certain amount is transferred to your account each month. The bank will look at your monthly transactions and offer you a pre-approved personal loan.

Giving bank salary slips for different jobs at the time of documentation can make them reject your loan even if it has already been pre-approved. If you change jobs too often, it will show career instability, raising doubts that you might not be able to make your payments in the future. 

Poor Credit Score

Most banks today use credit scores as a crucial measuring stick. When approving a loan, credit is always reviewed. Even if the credit score is low, many banks and financial institutions still give loans. Everything in your credit history will be shown. How many loans have you taken? Have any of your payments ever been late?

Your bank could reject your pre-approved personal loan at the time of document submission if your credit score isn’t up to par.

The Loan Amount is higher than your Salary

There is a good chance that you have accounts with many banks and that you have many payment plans for your different loans. The bank might have given you a pre-approved personal loan based on your history with them while not being aware of the transactions at other banks.

If the bank gets to know about other loans that you have taken, they will check for your repayment ability. If your remaining salary after paying the existing loan is less, they may reject your loan application.


A personal loan that has been pre-approved has many benefits. They are easy to get, have low-interest rates, and take the shortest amount of time to process. They are the finest source of funding in an emergency or need immediate funds. 

Looking at the above pointers, it is easy to say that a pre-approved personal loan does not guarantee that it will be approved. The reasons mentioned above may have an impact on the loan’s status.

Maintaining your funds in order is advised if you don’t want this circumstance to occur. You can always visit Piramal Finance to learn more about personal loans and how they work. They also offer other products and services that you can look at.