Everything You Need To Know About Pre-Approved Personal Loans

By Sanesh Mathew | November 7, 2019

What is a pre-approved Personal Loan offer? Should you avail this offer? We’ll be answering these and more in this article.

Everything You Need To Know About Pre-Approved Personal Loans

If you’ve ever shopped for a Personal Loan, it is likely that you’d have come across pre-approved offers. We’re certain that most of you are aware of what exactly a pre-approved Personal Loan is. However, if you aren’t or you only have a vague idea about this, then this article is a must-read for you.

So, what exactly is a pre-approved Personal Loan offer, and should you avail this offer? We’ll be answering these and more in this article.

Pre-Approved Personal Loan

A pre-approved Personal Loan is nothing but an unsecured short-term loan that individuals with a decent Credit Score can avail from banks and NBFCs. However, unlike a normal Personal Loan, these offers are extended to the customers by the banks and NBFCs themselves. It is usually offered to individuals whose creditworthiness has qualified as acceptable by the lending institution.

Eligibility Criteria

Long-standing customers of a lending institution who meet the below requirements are usually offered a pre-approved Personal Loan:

  • An above-average Credit Score
  • A good bank balance
  • A proven savings record
  • A decent income
  • A proven repayment history

In case you want to check if you’re eligible for a pre-approved loan from your existing bank, you can do so by logging into your netbanking account.

Additional Reading: Your Personal Loan Eligibility Checklist

Documents Required To Avail This Loan

Since a pre-approved deal is usually offered to existing customers of a bank, the process is hassle-free, involving little to no documentation. However, if you are applying for a pre-approved loan with a bank other then the one you hold an account with, then you’ll have to provide the following documents to process your loan:

  • Bank statements for the last six months
  • Pay slips for the last three months
  • Identity proof
  • Address proof
  • PAN

Why You Should Apply For A Pre-Approved Loan?

Opting for a pre-approved loan has its benefits. Let’s discuss a few, shall we?

Quick processing and disbursal

Since your bank has already done your creditworthiness check, a pre-approved Personal Loan gets processed quickly, probably even within minutes. And your loan amount will get credited in your account instantly too.

Good interest rate

Again, since these loans are offered by banks themselves, you’ll surely get the most competitive interest rate.

Additional Reading: How To Get A Better Interest Rate On A Personal Loan

Flexibility

In terms of repayment as well as use, these loans are quite flexible. You can use the fund for anything you like. Plus, you can choose from pocket-friendly repayment tenures that extend up to 60 months.

Applying For A Pre-Approved Loan

If you get an offer via SMS or call, all you need to do is respond to the same as applicable to start processing your loan requirement. You can also get in touch with your bank representative to start the processing.

In addition, you can check your eligibility and apply for a pre-approved loan via your netbanking account too. Here’s how to go about it:

  • Log in to your netbanking account
  • Go to the ‘loans’ section and choose ‘pre-approved loans’ option
  • Click on the ‘apply now’ button
  • From the pop-up window, select your preferred loan type to proceed
  • Fill the required information and submit your form

Good To Know

Now that you’re up-to-speed about pre-approved Personal Loans, here are a few tidbits about the same for you:

  • Pre-approved offers are usually an invitation-to-apply type offer, so they are valid only for a certain period. You’ve got to apply within the specified time period to be eligible for the offer
  • Although you’ll be offered the most competitive interest rate, you should still compare with other loans in the market before you take up the offer
  • There maybe charges, such as pre-closure and pre-payment charges, associated with the loan. Do enquire about this before you apply.
  • Banks may deduct a processing fee on these loans. You can request for zero processing fees to avoid this. However, this decision lies solely with your bank.

Top Pre-Approved Personal Loan Offers On BankBazaar

BankBazaar has three partners – Tata Capital, IndusInd and Incred – offering pre-approved Personal Loans. Eligible applicants for these pre-approved offers will need to submit only their bank statements to process their application. Payslips aren’t required. Here’s a quick look at the features of the aforementioned loans:

Tata Capital

  • BankBazaar exclusive: Zero processing fee
  • Interest rate starts from just 11.25%
  • Avail up to 20 lakhs as loan
  • Maximum tenure of 6 years available
  • Conditonal preclosure and part payment allowed after 12 months

Check if you’re eligible for this offer.

IndusInd

  • BankBazaar exclusive: Zero processing fee
  • Interest rate starts from just 11%
  • Avail up to 25 lakhs as loan
  • Tenure up to 5 years with preclosure option

Check if you’re eligible for this offer.

Incred

  • Available for new-to-credit customers (those who haven’t taken any credit products till date)
  • Minimum monthly income required is Rs. 15,000
  • Avail up to 7.5 lakhs as loan
  • Pre-payment option after six months

Check if you’re eligible for this offer.

Additional Reading: 5 Popular Personal Loans Of 2019

Haven’t got any pre-approved offers from your bank? No worries! These Personal Loans start from just 10.50% and come with attractive features like zero processing fees, zero hidden charges, etc. Check them out now.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Loans Personal Loans
Sanesh Mathew

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

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