Personal Loan: How to get a pre-approved personal loan? Eligibility, benefits and process explained

A personal loan is a widely used financial tool that helps individuals meet their financial needs. It is preferred because it does not require collateral and can be used for more than one purpose. Pre-approved loan stands out as a special type of personal loan offered according to the creditworthiness of the borrower.

What is a pre-approved personal loan?

pre-approved personal loan It is instantly provided to selected individuals by various banks and NBFCs based on your creditworthiness and credit history. It is offered in line with the repayment behavior of existing customers. Compared to a consumer loan, a pre-approved consumer loan is easier as it requires fewer documents, which makes the loan process faster. banks and NBFCs generally offer an interest rate of around 10 to 15 percent.

Who can use a pre-approved personal loan?

Banks and NBFCs They often offer a pre-approved personal loan to their existing customers. But in some cases, they also offer this to new customers. Banks consider the following factors before selecting customers for a pre-approved consumer loan.

How to get a pre-approved personal loan?

• First, check with your bank whether you are suitable for a loan.
• You can visit the bank branch or the official website to check your eligibility.
• If you are eligible, you can request a loan by filling out the application form on the bank’s website or mobile application or by physically coming to the branch.
• Select the amount and term of the loan.
• Submit required documents such as ID proof, proof of address, salary statement and bank statement for at least 3 to 6 months.
• After submission of required documents, banks and NBFCs will verify the details.

Please note that the required documents may differ from bank to bank. Please consult your relevant banks for the required documents.

Disadvantages of a pre-approved personal loan

Validity: The lender can approve this type of loan for a limited period of time. Therefore, you should take advantage of this loan immediately after you are approved.

Eligibility: Your eligibility for a pre-approved personal loan is at the lender’s sole discretion based on your credit history. Banks may or may not grant this loan at their own discretion.

As a result, a pre-approved personal loan can help you finance your immediate financial needs. It is also a reward for maintaining a good credit score and paying off loans on time. However, a person needs to get pre-approved loan based on his/her requirements and not just his/her eligibility.