You may have received multiple SMS texts or e-mails that say, you can get your pre-approved personal loan with just a few steps. We are here to help you understand everything about what these pre-approved personal loans are, what does pre-approved for a loan mean, its features, benefits and much more.
What does pre-approved for a loan mean?
A pre-approved personal loan is similar to a regular personal loan. However, the sole difference is that pre-approved loans are only disbursed to select customers. Furthermore, such loans require a very minimal amount of documentation, and no security or collateral is involved. The only requirement in such cases is having a good credit score and a repayment history of credit with no blemishes. Make sure that these are on point and getting a personal loan is probably one of the easiest ways to get instant cash for yourself.
Eligibility requirements for a pre-approved loan
Now, there could be multiple reasons based on which the bank has decided to provide you with a pre-approved loan:
- You might have a good credit score.
- The bank must have checked your credit history and found a good bank balance.
- You’re on time with your loan payments and not a defaulter.
- The bank has been keeping an eye on your income and expenditure and compares it to your credit worthiness.
Thus, we now hope that you are clear about what a pre-approved loan means.
Banks that provide a pre-approved personal loan
Almost every major bank and non-banking financial institution (NBFC) in India offers pre-approved personal loans to individuals. As a result, you will have absolutely no issues in getting your pre-approved personal loan approved in an instant (provided you have the right credit score for it).
What are the features of a pre-approved personal loan?
Here is a closer look at some of the features of personal loan pre-approval:
- In case, you are an existing customer of the bank, then the personal loan request will be approved, and the loan amount will be deposited in a short span of time.
- In addition, there will hardly be any documentation required for the whole procedure.
- The loan amount can vary from one person to another. Your credit history and past repayment of credit record can play its part here. Make sure they are all perfect and you will get the required loan amount approved in no time.
- You will have to pay back your pre-approved loans with EMIs. In case, you do have an account with the bank, you can also opt for the auto-debit policy with the bank and pay your EMIs effortlessly.
- Check for any hidden fees or charges. Sometimes, banks or lenders do levy processing fees, EMI bounce charges, outstation collection fees and many more.
What are the benefits of a pre-approved personal loan?
Here are some of the many benefits of getting your hands on a pre-approved personal loan:
- Instant access to funds – When you are in a deep financial crisis, being eligible for a pre-approved personal loan could sound like an ultimate breather. This is because such loans get approved very quickly. Moreover, there are no collaterals involved, which makes them a great way to get instant credit.
- Better interest rates – Having a good credit history with the bank or just in general can also make you eligible to enjoy better interest rates. The clean financial repayment history shows the lender that you are fiscally responsible and alleviates any doubts about you being a credit risk person.
- Loan tenures are flexible – Another benefit of getting instant pre-approved personal loans is the fact that the loan tenures are very flexible. As a result, you can opt for the one that is most comfortable for you.
- Negligible documentation needed – If you do have a bank account with the lender already, then everything gets so much easier. The bank already has most of your necessary details, such as KYC, income details and more.
- Quick processing – The pre-approved personal loans can get processed for you quickly, since you are already matching up with most of the eligibility criteria.
In addition, a person with no credit history is also eligible for a personal loan from the bank, provided they have a stable source of income, and their savings bank account has sufficient funds.
Interest Rates of Pre-Approved personal loans
The interest rates for pre-approved personal loans can vary from one bank to another. However, if you choose Airtel, you will get a pre-approved loan at just 10.49% interest rate. Apply for your personal loan from Airtel Flexi Credit today and reap the benefits!