Looking to avail pre-approved personal loans? All you must know about it.
If you have ever shopped around for a personal loan, the chances are high that you would have come across a pre-approved personal loan offer. We are certain that most of you are thoroughly aware of pre-approved personal loans. However, if you are not or have a vague knowledge regarding it, then you must read on to know more about it.
So, what is meant by a pre-approved personal loan, and should you go for this offer? Here in this article, we will be answering it and more.
Pre-approved personal loan
A pre-approved personal loan is an unsecured short term credit option that you with a decent credit profile can avail yourself of through NBFCs and banks. However, unlike the normal personal loan, such offers are extended to you by banks and NBFCs. Usually, it is offered to you if you have good credibility in terms of repayment of past dues.
What are the eligibility criteria for availing of pre-approved personal loans?
Long-standing customers of a lending institution who mitigate the below-mentioned requirements are generally provided with the pre-approved personal loan offer:
∙ An above-average credit score
∙ A proven savings records
∙ A satisfactory bank balances
∙ Decent income
∙ Proven repayment history
In case you are looking to check your pre-approved personal loan eligibility from an existing bank, you can do it by logging into your net banking account.
What are the important documents required to avail of the personal loan?
As the pre-approved deal is generally offered to the existing bank customers, the process is often hassle-free, involving no or little documentation. However, if you want to apply for a pre-approved personal loan with a bank other than whom you hold an account, then you will require providing the listed documents for the loan processing:
∙ PAN card
∙ Bank statements for the past 6 months
∙ Payslips for the past 3 months
∙ Address proof
∙ Identity proof
Why should you place an application for the pre-approved personal loan?
Opting for the pre-approved personal loan comes with its own set of benefits. Let us discuss a few of them in detail here.
Instant processing as well as disbursal
As the bank already has done your credibility check, a pre-approved personal loan gets processed instantly, probably in minutes. And your loan amount is credited to your account quickly too.
Good rate of interest
Again, as such personal loans are provided by banks on their own, you will surely avail the most competitive rate of interest.
Flexibility
In relation to repayment and use, such loans are extremely flexible. You can simply use the funds for anything that you like. Additionally, you can select from the pocket-friendly loan repayment tenures that extend to up to sixty months.
Applying for the pre-approved loan
If you avail of the offer through call or SMS, all you require to do is respond to it as applicable, to begin with, the processing of the loan. Also, you can get in direct touch with the bank representative to aquire quick money.
Additionally, you can review your loan eligibility and apply for the pre-approved loan through your net banking account also. Here is how you can go about it.
∙ Log on to your net banking account
∙ Visit the loan section and select the pre-approved option
∙ Click the apply now button
∙ From the pop up window, choose your preferred loan kind to proceed
∙ Fill up the required data and then submit the loan form
Good to know
Now that you know about pre-approved personal loan, ensure to know a few tidbits about this loan:
∙ Pre-approved loan offers are generally an invitation to apply as they are valid just for a specific period. You must apply within a particular time period to be eligible for this pre-approved offer.
∙ While you will be provided with the most competitive rate of interest, you must still compare with various other loans in the lending marketplace before you take up this offer.
∙ There might be charges, like prepayment and pre-closure charges, linked with the loan. Ensure to enquire regarding this before you place an application.
∙ Banks might lower the processing charges on such loans. You can place a request for zero processing charges to avoid it. However, this decision completely depends upon the lender providing the pre-approved personal loan.
∙ Ensure to use the SBI personal loan EMI calculator or HDFC personal loan EMI calculator to know the feasible EMI and tenure as per your repayment capacity. Note that such calculators ask you to place in 3 basic entries, namely the required loan amount, repayment tenure and rate of interest. Once you place these details, the calculator automatically computes the EMI and overall interest outgo. Once you get this result, you can easily decide whether to go for the inputted data or to make changes to it to lower the EMI a bit.
Ending note
A pre-approved personal loan is the same as any other personal loan, but its pre-approved nature makes the difference. A pre-approved nature reveals that the loan is already approved, and you are only required to apply for it, and you will get the fund without hassle. A pre-approved personal loan is a promotional strategy by banks to enhance the sale of your products. Most of you may keep getting calls, emails or text messages from distinct banks stating that you hold the eligibility for the pre-approved personal loan from the specific bank. This type of massage is very common and usually may pop up across the ATM after cash withdrawal from kiosks. You might think about what such pre-approved personal loan offers & how it is possible? However, the truth is such loans exist. And you can avail yourself of them easily by responding to the calls and texts at times when you require monetary support. But remember that pre-approved personal loans are provided to you only if you have a good credit record and history. Financial institutes carry out an in-depth analysis of your credibility, credit score and financial standing. Depending upon such analysis, they provide you with pre-approved personal loans.