Pre-Approved Personal Loan

Pre-approved loans undoubtedly cut the hassle time of documentation and waiting for approval. With the briefly explained points of a pre-approved personal loan, you can easily make the decision of choosing a direction toward such a loan. However, like any other personal loan, there are certain eligibility requirements one needs to fall in to get the benefits of a pre-approved loan. If you are eligible for such a loan, you can access all the benefits a pre-approved personal loan provides you.

What is a Pre-Approved Personal Loan? 

Pre-approved personal loans are instant loans that are offered to chosen clients. It requires the least documentation and no insurance or security. All you want is a decent financial record and repayment record to be qualified for a pre-approved personal loan.

To considerably grow the sale of loan products, banks and Non-Banking Financial Companies(NBFCs) introduced this form of personal loan to the customers. Pre-approved loans are great when it comes to meeting customer’s urgent financial needs or providing customers with limited disbursement time. The interest rate offered can be between 10.49% p.a. and 14% p.a. for pre-approved loans. In any case, the interest rate might vary from one bank to another, and you should check the financing cost with the moneylender prior to accepting a pre-approved personal loan. Pre-approved loans are a special activity by banks to expand the deals of their advance items. 

There are a few potential justifications for why you might be picked as a qualified client:

• The bank could have checked your Credit Score and tracked down you as a decent candidate.
• The bank could have assessed your record as their customer and saw great bank balance and repayment behaviour.
• You might have taken a loan from the bank beforehand and made brief and standard repayments.
• The bank may be observing your pay and credit use accordingly with your credit amount.

Pre-Approved Personal Loan Interest Rates

Below is a list of  various banks and NBFCs with the general interest rates they are providing on a pre-approved personal loan:

Banks/NBFCs	Interest Rates (p.a.)
Axis Bank	10.49% onwards
DMI Finance	12.00% – 40.00%
EarlySalary (Fibe)	24.00% – 30.00%
Federal Bank	11.49% onwards
IDFC First Bank	10.49% onwards
L&T Finance	12.00% onwards
Money View	15.96% onwards
MoneyWide	18.00% onwards
Piramal Finance	12.99% onwards
Tata Capital	10.99% onwards

Top Banks that Offer Pre-Approved Loans 

Here are some top banks with different offers on pre-approved personal loans:

Bank name	Loan amount	Processing fee	Repayment tenure
State Bank of India	Up to Rs. 25 lakh	NIL	Up to 5 years
ICICI Bank	Up to Rs.10 lakh	1.25% of loan amount + GST	Up to 5 years
HDFC Bank	Up to Rs. 40 lakh	Up to  Rs.4999	Up to 60 months
Aditya Birla Capital	Up to Rs.15 lakh	Up to 2% of loan amount + GST	Up to 3 years
IDFC First Bank	Up to Rs.40 lakh	Up to 3.5% of the loan amount	Up to 5 years

How to Check Approved Personal Loans? 

You can simply visit the branch of your moneylender to check the status of your approved personal loan. You can also call the respective bank or NBFC to verify the status of your personal loan approval. However, visiting the branch or calling the bank can be a time-consuming process. Log into your bank account online will save you some time and provide you with the accurate status of your approved personal loan.

Pre-Approved Personal Loan Features 

The following are the features of a pre-approved personal loan:

• Instant Funds: When the bank determines the amount of your eligibility and has verification of your financial history, the disbursement time taken for a pre-approved personal loan is minimal, and the funds are disbursed rapidly.
• Impressive Interest Rates: Pre-approved personal loans, on occasion, accompany a lower rate of interest. This is on the grounds that the bank is guaranteed your capacity to repay, given your financial reasonability and security of pay. Since you are a chosen client, the bank will offer you the most competitive interest rates on pre-approval of a personal loan.
• Purpose Flexibility: A pre-approved personal loan is great to the degree that it has no use hindrances or any limits. You can use the money for any personal necessities, and no inquiries will be held on how you spend the money.
• No Documentation: A Pre-approved personal loan for a current client, for the most part, requires no documentation.
• Online: At the point when you have a personal loan pre-approval offer, you can claim the loan online on the web without leaving your home or office. You can simply contact your bank or a bank delegate for the funds to be moved to your account. Additionally, you can sign into your bank account on the web and request for the Pre-approved advance there.
• Adaptable Repayments: Pre-approved personal loans allow you to pick the term of repayment for the loan. You can pick a tenure that gives you pocket-friendly EMIs. Various banks offer different tenures from 12 months to 60 months, with EMIs beginning at approximately Rs.2149 per lac for adaptable repayment.

Eligibility for Pre-Approved Personal Loan 

Below are the eligibility criteria for a pre-approved personal loan:

• Qualified candidates should have a decent record of their credit history.
• Candidates should be existing clients of the bank. Certain banks offer pre-approved loans to new clients as well.
• Candidates should have a perfect record of repayment history.
• Clients with no previous record of credit history and repayment record are likewise qualified for the pre-approved personal loan if they have significant reserve funds in their bank account and a steady type of income.

What is the Process of a Pre-Approved Loan? 

A basic process of documentation and fast disbursals of pre-approved personal loans have gone with the favoured decision of loans when an individual needs funds. There is a quicker technique to be qualified for an instant loan with a pre-approval, with practically no extra document submission.

A pre-approved personal loan needs negligible to no documentation or potential desk work with the most un-handling time. Banks frequently present it to existing clients who have a spotless credit record. An investigation of their financial standing and believability is completed to check the history of previous credits going through old loans and repayments of existing loans. So, on the off chance that you have a good history, you are qualified for a pre-approved personal loan. 

How to Apply for a Pre-Approved Personal Loan? 

Follow the below-mentioned steps to apply for a pre-approved personal loan:

• You can check with your bank if there is any pre-approved personal offer available for you. You can also log into your bank account online and check your eligibility for a pre-approved personal loan.
• Submit a well-filled application form to the bank. You can get this form on the bank’s website or from the branch.
• Select the required loan amount and the loan tenure.
• After the successful application verification, the loan amount will be credited to your bank account.

Tips to Get a Pre-Approved Personal Loan 

Understanding the below-mentioned tips will surely help you to get a pre-approved personal loan:

• Keep a high credit score, decent credit history, magnificent repayment record, stable revenue, and significant reserve funds in your bank account to get a Pre-approved personal loan.
• Such loans might be accessible for a predefined period; hence, always check with your moneylender.
• Remember to go through the agreements of such loans with your moneylender, particularly the appropriate interests and charges.
• Prior to applying for the instant pre-approved personal loan, do a thorough examination. Look at accessible highlights and interests of other loan offers with your pre-approved loan offer and pick the one that best suits your necessities.

Pros & Cons of Pre-Approved Personal Loans 

Pros	Cons
Negotiation Power	Fees and penalties can be high
Flexible Tenure	May lead to a growing load of debt
Quick Disbursement	Potential damage to credit
Impressive Interest Rates	Limited Time
Paperless Application Process	Possible rejection
Hassle-Free
Instant Money