Know All About Pre-Approved Personal Loans

Have you come across e-mails or messages stating you are eligible for a pre-approved personal loan? Have you ever wondered why your bank has approved such a loan?

For that, you will first have to understand what a pre-approved personal loan is:

A pre-approved personal loan is a collateral-free short term loan that is generally approved for people with an excellent credit score. These loans are offered by banks to their existing customers upon the fulfilment of certain criteria.

Banks have identified the funding requirements of their customers and approve such offers as they want to extend credit to eligible customers at a lower interest rate and maximum convenience.

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Key Features of Pre-Approved Personal Loan:

• The application procedure is paperless and is completely online
• The processing is fast and it requires almost zero documentation
• Special offers like reduced interest rates and flexible repayment tenures
• Low processing fees and no hidden charges

See Also: How to Get Personal Loans Instantly?

What are the Eligibility Criteria for Such Loans?

Pre-approved loans are generally offered to long-standing customers who have a good relationship with the bank. You can also avail such loans if you have a decent credit score, good bank balance, a regular and substantial history of saving money, a good income and excellent repayment history.

Pre-approved loans are approved up to a certain limit that is determined by evaluating your credit score. Since the eligibility criterion differs across banks, you must check your eligibility through your net banking accounts before availing such loan.

Documents Required To Avail This Loan:

Generally, banks approve such loans for their existing customers and this is why you do not need to go through extensive documentation. The process is simple and hassle-free. You can click on the pre-approved loan offers and avail the loan instantly as the process is completely online. Banks offer special interest rate and flexible repayment tenure for such loans. The loans are instantly disbursed into the bank account of the customer that needs to be repaid in monthly EMIs.

See Also: Apply for Instant Personal Loan Online

But, if you are not an existing customer of the bank then you need to submit your documents. You need to provide the following documents for verification purpose:

• Bank statement of the previous 6 months
• Salary slip of last 3 months
• Identity proof
• Address proof
• KYC documents

What are the Benefits of Pre-Approved Personal Loans?

The pre-approved loans have their own share of benefits. This is the reason they have become an instant hit among professionals. Here are some of the main advantages of these loans:

• Instant Access to Funds: The approval time taken for such loans is nominal and the funds are sanctioned readily once your profile meets the eligibility criteria. You can now have access to funds within a day if you are an existing customer of the bank.
• Competitive Interest Rates: Pre-approved loan offers come with lower interest rates. This is because the banks approve such offers based on the credit score and repayment history of the customer. Since you are a select bank customer and have the stability of income your bank will offer you best interest rate of these personal loans.
• The Flexibility of Purpose: A pre-approved loan is quick an attractive option as there are no limitations to its end-use. You can use the funds for any requirements. You do not need to specify your purpose of availing the loan.
• Zero Documentation: Usually the existing customers require no documentation as the bank already has access to your credit score and your repayment history. The loan is completely online and hassle-free
• Flexible Repayment Tenure: You can choose the repayment tenure of such loans. The loans are budget-friendly as the repayment tenure ranges from 12 months to 5 years. The loans must be repaid in monthly instalments over the tenure.

See Also: Top 10 Tips For Personal Loan

Applying For A Pre-Approved Loan:

When you have a pre-approved loan offer you can apply for it with a simple click. You can accept the offer from the comfort of your home. You need to contact the bank executive for general queries and to complete the formalities. Once the formalities are completed the amount sanctioned will be transferred to your account.

You can follow these below-mentioned steps to apply for loan online:

• Login to your net banking account to initiate a request
• Click on loans and  select the ‘pre-approved loan’ section
• To accept the pre-approved loan offer click on the ‘apply now’ option
• Select the type of loan and fill in the application form

If will be beneficial if you do a bit of research before applying for such loans. Pre-approved loans are a lifesaver for your urgent cash requirements as their approval takes lesser time. But it is wise that you do not opt for such loans only because you are getting a great offer. 

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