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