What are pre-approved personal loans: Everything you need to know

Have a good credit history, clean bank records, and a good repayment frequency? Then, you would be glad to know that you might be a potential individual for a pre-approved personal loan. Like a personal loan, you can borrow money and pay it back at a higher interest rate. However, a pre-approved personal loan is quite different in other terms.

This article focuses on everything about pre-approved personal loans. First, we discuss a pre-approved loan, its features, eligibility, and how to apply. 

What exactly is a pre-approved personal loan? 

A pre-approved personal loan is a type of short-term credit that banks offer you in advance because of your good bank track record. You might be a decent candidate if you pay off your instalments on time, have a good credit score, and repay your old dues. It helps you cover up your ends and pay the returns in EMI. 

It is a way through which banks promote their loan-providing scheme by giving loans to their good customers. 

Banks try to offer this scheme to their customers who have a proven track record, and they are sure that these customers can pay it off. Even the best personal loan schemes don’t have the extra benefits that pre-approved loans provide. 

What are the exclusive features of a pre-approved personal loan? 

Here are some exclusive features of a pre-approved personal loan:

• No paperwork

Since banks offer you this deal from their side, they know your complete history. So, they don’t ask for any paperwork while handing you the loan. 

• Immediate processing

The processing is immediate and is often sanctioned in less than a day. Since there isn’t any paperwork, processing your loan will take very little time. 

• Quick approval

In terms of approval time, it is even faster than the best personal loan. It doesn’t even take a day for your loan to be approved and processed. 

What are the benefits of applying for a pre-approved personal loan? 

• High flexibility

You are given the option to tailor your tenure of repayment. For example, most banks provide you with 12 months to 60 months to repay the loan in small instalments. 

• Instant processing

You get the money in your hands within some hours without any delay because banks know your potential. 

• No documentation

Since banks have allowed you to apply for a pre-approved personal loan from their side, they don’t need any further documents. 

• No paperwork

Similarly, since banks know your credit history and track record, they don’t need any paperwork, either. 

• Low-interest rates

As it is not your call, banks will provide you with a lower interest rate and even cut that into small instalments throughout a set period. 

• High convenience

In a pre-approved personal loan, you don’t experience any hassle, so you are convenient enough to take the loan and pay it off quickly. Since the bank’s scheme promotes their loan system, they tend to reduce the interest rate so you can quickly repay. 

• Special discounts

Banks will provide you with special discounts if you have an excellent credit score and good loan history. For example, you might get passed by the application cost or get the loan at a reduced interest rate. 

What is the eligibility to apply for a pre-approved personal loan? 

There are a few requirements to be able to apply for a pre-approved personal loan. Banks already know your potential. They have allowed you to take it up in the first place. Banks would consider a good track record as the most crucial eligibility bar. 

If you are still waiting to receive a notification from the bank and are eager to know whether you fit into the eligibility, contact your bank. Then, visit your bank’s official website, log in to your account, and check if you have qualified for it. 

How to apply for a pre-approved personal loan online? 

Here is how you should apply for it online:

• Visit the bank’s official page where you have decided to get your personal loan. 

• Log in to your bank account by adding your account credentials. 

• See the “offer” section and see if you qualify for the minimum eligibility to apply for a pre-approved personal loan. 

• Now submit an online application by entering your basic details, which you can get from the SMS, branch office, or mobile application. 

• Choose the loan amount you feel is right for you and the period you will take to repay the loan. 

• The bank will verify your application and sanction the loan in less than a day. 

This process is quicker if you already have an invitation from the bank. This invitation can be received through an SMS or an email on your device.

Summing up

A pre-approved personal loan can open doors for you to finance a marriage, buy a home or pay off your debts. It is an effective way to undergo significant transactions at a time. You can use a pre-approved personal loan calculator to calculate the interest rates at different intervals. This will help you keep an eye on the updates of your loan and help you get your estimates. 

If you like reading similar articles, you should visit Piramal Finance‘s official page. They have highly engaging content regarding pre-approved personal loans, investments, and all financial-related schemes.