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Detailed Guide on Pre approved personal loan

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How can I obtain a personal loan that is pre-approved?

A lot of users have received text messages and emails from banks as well as several other lenders, advising us that we’re eligible for an approved personal loan. Sometimes, we’re informed by bank relationship managers that we are just a couple of actions (or clicking) away from qualifying for an approved personal loan. We’ll try to understand the meaning behind this and whether it’s possible to skip all of the steps to get the loan.

What’s a personal loan that has been pre-approved?

A personal loan that has been pre-approved is an secured credit provided by banks and other financial institutions when you have a great credit history, an excellent credit score and a good repayment history. If the borrower has paid all EMIs in time and consistently displaying good credit scores and has a good credit score, banks are likely to contact the person with an offer. Even those with solid savings and a stable income may be approved for a personal loan. It’s basically an instant personal loan that banks offer with no or minimal documents that require the least amount of processing time. Personal loans are used by the borrowers to fund their short-term, immediate needs such as house improvements or marriage, foreign holidays or medical emergencies, without having to provide the security or collateral but they need to provide basic evidence of the bank’s history and record. Being approved for pre-approved personal loans is a great way to access this fast financing because it removes the majority of forms and documents.

Eligibility for personal loans that have been pre-approved

In order to qualify to personal loans that are pre-approved the lender’s requirements must be fulfilled by the applicants. These include:

  • A solid credit score As we’ve stated earlier, if the person has a solid credit history and has frequently paid off his bills, debts or other financial obligations that are well-planned, banks are more likely to give you credit that is pre-approved for personal use. An CIBIL rating of 750 or over indicates that the person is financially responsible.
  • Should be an existing client of the institution An extensive and established track record of transactions of a current bank can be beneficial because banks value loyal customers. A strong rapport with banks is an asset. Some banks are also open to loaning these loans to new customers too.
  • A stable savings and income history A steady income, and no credit history, in addition to high savings in your account can also help you in getting an approved personal loan.

If you’ve met the criteria above and you meet the above criteria, you can make contact with the bank or stop by to see whether there’s an approved personal loan to help meet your financial requirements.

Leading banks who provide pre-approved loans

Name of the bank

Amount of loan

Interest rate

Processing fee

Repayment tenure

State Bank of India

The discretion is the bank at its discretion.

The discretion is the bank at its discretion.

NIL

The discretion is the bank at its discretion.

ICICI Bank

All the way to Rs.20 lakh

11.25% and up

1.25 percent of the total loan amount, plus GST

For up to 60 months

HDFC Bank

As high as Rs.15 lakh

10.75 percent onwards

2.5 percent of loan amount subject to a minimum amount of Rs.2,999 and a maximum amount of Rs.25,000

For up to 60 months

Aditya Birla Capital

As high as Rs.15 lakh

14% and up

The discretion is the bank at its discretion.

All the way to 36 months

IDFC First Bank

Rs.1 lakh and above

10.75 percent onwards

NIL

up to 84 months

How do I get an approved personal loan

The majority of lenders communicate with their customers to inform them of their personal loan eligibility that has been pre-approved If you’re in need of personal loans and you have been diligent with your finances You can contact the bank or go online to determine your eligibility. If you’ve been told that you may apply for this loan at any time Here are the steps to follow

  • Go to the nearest branch or visit the bank’s site and fill out the application form.
  • Choose the loan amount, and duration.
  • Documents to be provided if necessary (PAN card or income proof, or address evidence)
  • These information are checked by the bank, and the loan is paid out and credited to your account within a few hours or even days.

Comparison of interest rates

The majority of the top bank and NFCs across India provide pre-approved personal loans for eligible customers. Here’s a comparative of the interest rates for loans that are pre-approved of major banks as well as the NBFCs of India –

Provider Name

Interest Rate*

State Bank of India

9.60% and up

HDFC Bank

10.50% or more

Axis Bank

11.00% and up

ICICI Bank

10.50% and up

Bajaj Finserv

11.49% and up

Kotak Mahindra Bank

10.50% and up

IDFC First Bank

11.00 to % from there on.

Benefits and features of personal loans that have been pre-approved

Nearly no documents and paperwork As an initial evaluation and assessment of a person’s credit history is already done through the loan provider, there isn’t much documentation or paperwork required by banks. Since credibility has been established and established, the process will be free of complicated or heavy documents. The bank already has all of the information about your earnings, KYC etc in their database.

Rapid Processing This means that the time required to pay the loan may be one or two hours, provided that all eligibility requirements have been fulfilled by the applicant. If you’re an existing customer of the bank the loan amount is likely to show up into your account in only a few minutes following the initial check of your credit record.

There is no security or collateral –Borrower is not required to pledge collateral or security to get the pre-approved loan. This is true regardless of whether the loan is not immediate.

Interest rates that are preferential for borrowers with higher credit scores.Since the pre-approved personal loans are provided to those with a strong savings and credit The borrowers receive low rates of interest which are typically lower than normal rates.

Flexible repayment The term for repayment could be from 12 months to 60 months. Borrowers have the option to pick the repayment term at their discretion.

Discounts and offers Discounts and offersBanks could offer you interest rates at a lower rate or even waive the processing fee as they are already confident of your past repayment record.

The disadvantages of personal loans that are pre-approved

  • The loan that has been pre-approved may only be valid for a couple of days or for certain times
  • If there’s a discrepancy that is discovered during the process of applying the loan could be denied. The pre-approval does not necessarily mean immediate disbursement. Sometimes, it could be rejected.
  • Rates of interest could rise. Certain banks might increase rates of interest to provide you with a an instant loan. Therefore, it is essential to be alert and aware.
  •  

Always keep in mind

Keep a good score on your credit Never fumble in your payment of credit card bills. Be a responsible and responsible customer it will give you instant loans that have high interest rates when needed.

Keep track of all pre-approved loans This could be announced in certain seasons or times of the year. Therefore, it is best to be aware of these announcements by your lender regularly.

You must do some research Conduct a thorough study of the available personal loans offered by different lenders. You can also compare the interest rates . Then, go for the one that meets your requirements.

Learn about other fees Be sure you know the processing fees, pre-payment costs and pre-closure fees banks require to provide credit that is pre-approved for personal use.

Conclusion

Unexpected events can come at us. During moments of crisis, having a financial cushion can be a great help. Although personal loans can be used for many reasons A pre-approved personal loans will make life easier by providing credit and cash disbursement quickly without the need for documentation or paperwork. So, it’s important to maintain a good credit score and be disciplined financially in order to qualify for these fast loans.

 

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