A pre-approved personal loan is like an instant loan. Only a select few customers are eligible to avail of it. You can get a personal loan with minimum documentation. There is no need to furnish collateral for such a loan. If you have a good credit history, it is easy to get a personal loan.
Many banks and non-banking financial institutions sanction pre-approved loan offers. This is done to build awareness among consumers and increase the sale of their loan products. In the case of personal or instant loans, they can be sanctioned quickly, within a day or two. The rate of interest on such loans can differ between banks.
How To Become Eligible For A Pre-Approved Loan?
Banks send out pre-approved loan offers as a promotional exercise. It helps to increase the sale of their loan products. Here are some reasons why a bank may give you a pre-approved loan:
- You have a good credit score. It makes you a good customer for the bank.
- Banks may review your credit history with them. You may have a good balance and transaction rate. Again, this makes you a preferred customer for a pre-approved loan.
- You may have taken a loan from the bank. Also, you may have made quick and regular repayments.
- Bank may check your rates of income and expenses. Corresponding it with your credit history, they may find you worthy.
There are many banks that offer pre-approved loans online. But every bank may give a different loan amount and rate of interest. You will also need to check their processing fee. The repayment tenure of such loans varies from 12 months to 60 months.
Features Of Pre-Approved Loan
Here are some of the most important features of a pre-approved personal loan.
- Quick disbursal: You can get the pre-approved loan in less time. If you are an existing customer of the bank, it is easier. Then, funds go directly to your account.
- Minimum documentation: Pre-approved loans are very hassle-free. They do not require extensive documentation.
- No security: You can get instant loans without any collateral or security.
- Different amounts: Banks offer pre-approved loans based on credit history and repayment records. Every individual may be granted different loan amounts.
- Repayment: Pre-approved loans can be repaid through EMI. If you have an account in the same bank, you can also avail of the auto-debit facility.
- Charges: You may have to pay certain fees to get a pre-approved personal loan. These include processing fees, EMI bounce charges, penal interest, foreclosure charges, and more.
Benefits Of Pre-Approved Loans
There are many benefits of a pre-approved personal loan. They make them an attractive option for many borrowers.
- You can meet your urgent financial needs with such a loan. Pre-approved loans online are sanctioned on the same day. So, you can use that amount for any purpose.
- A good credit history makes you eligible to get competitive interest rates.
- Choose your desired loan repayment period. This will help you avoid defaulting on loan repayments.
- You need not provide any documents if you are an existing customer of the bank.
- You can easily apply for the loan through a website or mobile app. It is a paperless process that can be completed online.
- The processing time of the loan is very swift.
- You can easily negotiate the terms of the loan with the bank.
- You may also be eligible to obtain special discounts. This could be in the form of lower interest rates, processing fee waivers, and more.
Check Whether You Are Eligible To Get Pre-Approved Loan Offers
The eligibility criteria for pre-approved loans online are very simple. You are eligible for such a loan if you have a good credit score. Most banks lend pre-approved loans only to existing customers. It is a plus point if you have a clean record of repaying your debts. Banks may consider your existing balance and income status to decide whether you are eligible for the loan. It is advisable to check with your bank whether you are eligible for such a loan.
How To Apply For A Pre-Approved Loan?
Here are a few steps to follow. They will help you apply for pre-approved loans online.
- Log in to your net banking account. Check if you are eligible for a pre-approved loan.
- Submit a loan application form. It is available online and offline.
- Choose the loan amount and repayment tenure.
- Bank will verify your request and sanction the acceptance letter. After this, you will get the loan amount in your bank.
In some cases, NBFCs may ask for certain proofs. They may be salary slips, KYC details, and more.
Is It A Good Idea To Get A Pre-Approved Loan?
With a good credit history, you can get pre-approved loan offers from your bank. A good credit score can help you get a loan easily. Such loans may be available only for specified periods. So, check with your bank about the terms and conditions. To ensure that your application is not rejected, make sure you provide complete documents. Also, it is best to enquire about interest rates before taking the loan. You should also check the applicable fees to avoid any hassle later. Also, remember that only because the bank offers you a loan, you don’t have to take it.
Taking a loan is an important financial decision. A pre-approved loan carries many benefits. Getting one such loan can be very advantageous for you. For the best advice on financial services, visit Piramal Finance. It is a premier entity offering multiple lending services. You can visit their website to get more information about all matters related to loans. You can even consult with them for the best personal loan options.