You may have received text messages from your bank or calls from various lenders confirming that you have a pre-approved loan lined up against your name. It is indeed reassuring to know that you have funds available at short notice.
Pre-approved loans are hassle-free loans that lenders offer to customers, generally the ones with good credit history and repayment capacity. These loans come with minimal documentation and a smoother customer experience. They are similar to regular personal loans. The fact that makes it called pre-approved loans is that the lenders themselves come with this proposition of pre-approving your future loans.
Why go for a pre-approved personal loan?
- Quick processing: As you are already categorized by the lender as a good customer, you don’t have to pass their usual scrutiny. If all your financial information correlates and all papers are up to par, your pre-approved personal loan is disbursed within a day.
- Minimum documentation: The lenders generally offer pre-approved personal loans to their existing customers. So, your KYC, bank, and income details are already present in their database. This avails you of nil or minimal documentation to get the personal loan.
- Flexible repayment: You get flexible repayment terms and easy EMI options like a regular personal loan. Using a personal loan EMI calculator, you can choose a flexible period, which generally spans from 12 to 60 months.
- Favorable interest rate: As you are a preferred customer of the lender, it will offer you favorable personal loan interest rates.
Availing a pre-approved personal loan in India
You can check if you have an offer for a pre-approved loan from your existing bank or any financial institution. This can be done through NetBanking or contacting a branch/representative of the lender. If you are eligible for the personal loan, you need to submit a duly filled loan form, which you get from the lender’s website, branch office, or mobile app. While applying, you need to choose the loan amount and repayment tenure. Your account is credited with the personal loan amount once the lender’s verification is completed and you accept the offer.
While seeking a pre-approved personal loan, you may be required to provide your recent salary slips or salary certificate, address and identity proof, and bank statement.
Who are eligible?
Generally, customers who have a healthy financial relationship with the lender are offered pre-approved personal loans. These customers have a good credit score and a consistent repayment record. They also generally have a significant transaction record with the lender and a reliable income source.
Pre-approved personal loans are an effective promotional exercise by lenders to increase their loan product coverage. If you are a borrower in need, a pre-approved personal loan can be as prompt and liquid as the money in your wallet. So, make sure you understand the eligibility requirements so that you can access your pre-approved loan easily.