Everything You Need to Know About Pre-Approved Personal Loans

Today, Banks/ NBFCs present ready offers to their existing customer base, without the need for complicated documents or formalities. Plus, the process is generally unwieldy and automated.

Customers are usually interested to go to their host banks for loan application. This greatly saves them from long drawn documentation, uninvited calls, long bank queues, complex procedures, etc. These customers prefer to have quick approval & fast disbursal.

 What are the difficulties of a personal loan application?

We keep getting plenty of calls & SMSs from financial institutions offering a loan proposal and how close you already are to the process. These are essentially pre-approved loans which look enterprising? Now, let’s emphasis more on pre-approved loans and how valuable are they?

What is a pre-approved loan?

Pre-approved loans are unsecure, security free loans which require a good credit score for approval. These can be easily availed from banks, NBFCs or other lenders.

Pre-approved loans are not that different from a personal loan, excluding the part that banks directly approach you with an offer. To simplify this, your credit score has been assessed in advance.

How do you qualify for a pre-approved loan?

Permanent customers with a good credit score, good bank balance, existing savings, lucrative income and admissible repayment record are typically eligible for a pre-approved loan. Most of the times, the eligibility can easily be viewed through the net banking account.

Required Documents:

Since pre-approved offers are raised to the existing customer base, that’s why no documents or long drawn processes are required. This process is quite free flowing.

However, if you’re not an existing customer, then handle your lender with care. Here, you are supposed to supply 6 months’ statement, 3 months’ salary slips, valid ID proofs, valid address proof, etc.

Merits of Pre-Approved Loans

1. Fast Processing: When the lender has already checked upon and assessed your credit standing, processing is much faster. At times, it takes lesser than a minute for loan disbursal.
2. Affordable rates of interest:Because your offer is customized by the bank, the most affordable rates are available for pitch.
3. All purpose use:The loan sanctioned has great flexibility of use and also can be used at will. The amount can have dispersed out for any personal need.
4. Easy repayment: The pre-approved loans gives you the comfort to select an easy repayment option. Major banks offer a tenure between 12 to 60 months. This is way convenient to make timely repayments.

How to apply

Once you receive your loan offer, you just have to connect with your bank executives and finish all pending formalities. This will enable a smooth money transfer to the bank account.

When applied on a bank website:

1. Login into your net banking account
2. Tap on the ‘Pre-approved Loans’ section
3. Click on ‘Apply Now ’button
4. Select the type of loan
5. Quickly Fill up the form

To sum it up: A pre-approved offer is an appeal for the existing customers to take a loan within a specified time period. Get more information about the miscellaneous charges. Just ensure to make wise comparisons of interest rates & features.