An In-depth Guide on How to Get Pre-approved Personal Loan (November 2022)

Pre-Approved Personal Loan

Pre-Approved Personal Loan

‘You are now eligible to get an instant pre-approved personal loan easily from XYZ Bank.’ Most of us must have received such calls, SMS, or congratulatory emails from banks and other lenders. Have you ever wondered why they approach us and what this means? Is it that easy to bypass all the procedures and secure this loan? Let’s learn more in detail about pre-approved personal loans.

Processing a Pre-Approved Personal Loan

A pre-approved personal loan is an unsecured credit or a short-term loan offered by banks and various financial institutions to their existing customers. It can be availed if you have a clear track of credit history, a good repayment record, and financial discipline.

If an individual has repaid all the EMIs on time and consistently showcases a superb credit score, then:

  • Banks are likely to reach out to them with an offer of low-interest rates.
  • These instant personal loans can be approached with minimum or no documentation.
  • Also, it takes the least processing time.

 

Borrowers avail personal loans to finance their immediate short-term needs. It could be anything! For example, it can be a house renovation, wedding celebration, vacation to a foreign land/country, or even a medical emergency without the need to furnish any collateral or security. However, one has to produce documents of bank records and history. Being eligible for pre-approved personal loans makes it easier to get this quick funding as it eliminates most paperwork and documentation.

Eligibility for Pre-Approved Personal Loans

Those with good savings and steady income are eligible for a pre-approved personal loan. The customer must meet specific lenders’ criteria to get a pre-approved personal loan. It includes

  • Tap on A Good Credit History

pre-approved personal loan credit report

The individual must have regularly repaid his debts, bills, and other financial transactions on time. If so, the bank will be willing to offer him an instant pre-approved personal loan. Also, a CIBIL score of 750 and above indicates that the individual is financially responsible.

  • Should Ideally Be The Existing Customer Of The Bank

A long and proven transaction history with the existing bank is always beneficial as banks trust their loyal customers. A good relationship with the bank is always a plus. Some banks are open to lending these loans to new customers as well.

Also read: Canara Bank Pre-Approved Personal Loan

  • Good Income and Saving History

A stable income, absence of any credit history, and good savings in your accounts will give you an upper hand for a pre-approved personal loan.

If you have fulfilled all the above criteria, you can always call the bank or visit them to find out if you are eligible for an instant pre-approved personal loan to meet your financial emergency.

Top Banks that Offer Pre-Approved Loans

Bank Name Loan Amount Rate of Interest Processing Fee
State Bank of India Upto Rs.20 Lakh 9.60% onwards 1.5% of loan amount + tax
ICICI Bank Upto Rs.50 Lakh 11.25% onwards 1.25% of loan amount + GST
HDFC Bank Upto Rs.40 Lakh 10.75% onwards 2.5% of loan amount subject to a minimum of Rs.2,999 and a maximum of Rs.25,000
Aditya Birla Capital Upto Rs.15 Lakh 14% onwards At the discretion of the bank
IDFC First Bank Rs.1 Lakh onwards 10.49% onwards upto 3.5% of the loan amount

An Instant Pre-Approved Personal Loan!

In general, the lenders reach out to customers informing them of their pre-approved personal loan eligibility. But if you need to get it online and are sure of your disciplined financial transactions, you can approach the bank directly or check for a pre-approved personal loan online to know your eligibility. Once you are informed that you can apply for this loan, you can proceed with the following steps–

  • Visit the nearest branch or the bank’s website and fill out the application form.
  • Select the loan amount and tenure of repayment.
  • Furnish documents if required (PAN card, income proof, address proof)
  • After the bank verifies these details, the loan gets disbursed and credited to your account within a few hours or days.

Interest Rates Comparison of Pre-Approved Loans

Most leading banks and NBFCs (Non-Banking Financial Companies) in India offer pre-qualify personal loans to their eligible customers. Here is a comparison of the pre-approved loan interest rates of some major banks and NBFCs in India –

         Provider Name         Interest Rate
State Bank of India         9.60% onwards
HDFC Bank 10.75% onwards
Axis Bank 10.99% onwards
ICICI Bank 11.25% onwards
Bajaj Finserv 13% onwards
Kotak Mahindra Bank 10.99% onwards
L&T Finance 11.00% onwards
IDFC First Bank 10.49% onwards

Also Read: Latest Personal Loan Interest Rates of Banks

Features and Benefits of Pre-Approved Personal Loans

Pre-approved personal loan with Zero documents and Paperwork

Zero Paperwork & Documentation

As for the initial assessment and evaluation of an individual’s credit history, there is little paperwork or documentation sought by the banks. Since credibility has already been established, the process will be free of complex or heavy filing. The bank already has all your income history, KYC, etc., in their database.

Fast Processing

The processing time to disburse the loan could take a few hours or days as the borrower has met all the eligibility criteria. If you are an existing bank customer, the amount will most likely be reflected in your bank account in no time after the initial verification of your credit records.

No Collateral or Security

No Collateral or Security

The borrower does not have to pledge any collateral or security to secure pre-approved personal loans. This is applicable even if the personal loan is not instant.

Preferential Personal Loan Interest Rates

Since pre-approved personal loans are offered to those with good credit history and savings, the lenders are offering competitive rates of interest that are generally lower than the usual rates. Compare different banks and go for the one that will work best for you.

Flexibility in Repayment

The repayment tenure can be anywhere between 12 months to 60 months, and the borrowers can choose the tenure at their convenience.

Offers and Discounts

Banks may offer you special rates on interest or waive processing fees since they are already convinced of your repayment history.

Disadvantages of Pre-Approved Personal Loans

  • The pre-approved loan offers may only be valid for a few days or during a specific period.
  • The loan may be rejected if any discrepancy is found during the application process.
  • Pre-approved does not always mean instant disbursal.
  • Interest rates may increase. Some banks may increase the interest rates to give you a quick loan. So it is important to be aware and alert.

Also Read: How will I know if my personal loan is approved or rejected?

Points To Remember

Maintain a High Credit Score

Never falter in your repayments and credit card bill payments. Be a responsible customer. It will help you earn instant loan approval with reasonable interest rates when required.

Keep a Tab of Different Intimations

it is better to keep track of these announcements from your lenders regularly. The bankers make announcements during specific seasons or months.

Do your Homework

Do thorough research on available personal loans from other lenders as well. Compare the interest rates, and choose the one that best suits your needs.

Understand Other Charges

Make sure to understand how much processing fees, pre-payment charges, and pre-closure charges banks will ask for offering pre-approved personal loans.

Easy Pre-Approvals With Buddy Loan

When life throws unpredictable situations at us, a financial cushion is the need of the hour and you can avail of an instant loan for multiple reasons with the help of Buddy Loan. A pre-approved personal loan can make life easy by offering credit and disbursing fast cash without documentation and paperwork. One has to keep the credit score high and maintain the financial discipline to secure these quick loans.

Want to know more or get help, contact Buddy Loans. The safest and easiest way to get away with your pre-approved personal loan.