A Complete Guide on Pre-Approved Personal Loans

personal loans

A Pre-Approved Personal Loan is an instant loan facility. We are well aware of your need for good guidance, for which we have prepared this article with all the information about Pre-Approved Personal Loans. Go through the necessary information before applying.

What is A Pre-Approved Personal Loan?

A Pre-Approved Personal Loan is an instant loan facility that lending institutions offer to customers.  

Lending institutions offer Pre-Approved Personal Loans is offered to customers with a good credit history. Applicants must provide the requisite documents. Collateral security is not required to avail of this loan. 

Lending institutions extend this loan to existing customers with regular payment history. 

Benefits of a Pre-Approved Personal Loan

  • Speedy Processing: For an existing customer, the pre-approved loan will be disbursed to the customer’s account in a few minutes.                       
  • Minimum Documentation: Customers can get this loan with minimal documentation. It is a hassle-free process because it doesn’t need many documents for loan approval.
  • Attractive Interest Rates: You can be considered for this loan if you have excellent credit & repayment records. Also, if you have a stable income source, the lender will offer you a lower interest rate.
  • Flexible Purpose: You can use the funds the way you want. It can be education, purchases, home improvement, medical expenses, and more.
  • Instant Funds: Once the documents verification process has been completed successfully, the lending institution will approve your loan and disburse the loan amount instantly. You can use the loan as you require. 
  • Flexible Repayment: A pre-approved loan is repaid in Equated Monthly Installments (EMIs). The lending institution will offer you a suitable period for repayment. For most lending institutions, the standard repayment period is twelve to sixty months.
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The interest rates of Pre-Approved Personal Loans :

The interest rates of Pre-Approved Personal Loans vary from one lending institution to another depending on the credit history, income source repayment record, etc. Here is some data on personal loan yearly interest rates of leading lending institutions.  

  • SBI: 9.80% – 13.80%
  • Axis Bank: 10.25% onwards
  • ICICI Bank: 10.50% onwards
  • HDFC Bank: 10.50% – 21%
  • Bajaj Finserv: 13% onwards 
  • Kotak Mahindra Bank: 10.99% onwards
  • Tata Capital: 10.99% onwards
  • Fullerton India: 11.99% – 25% 

Personal Loan Eligibility

Eligibility criteria for personal loans vary from one lending institution to another. But some standard criteria are: 

  • First, you must have citizenship in India. 
  • You must be older than 21 and younger than 60.
  • You must be employed by either a private or public limited company.
  • Your monthly income should be at least 20,000 rupees per month. 

         For getting this instant loan facility you have to be a long-standing customer & also you need a good credit history & punctual repayment record. The lenders may give preference to those customers who have stable income sources & always maintain an average balance.

The application process for a Pre-Approved Personal Loan:

  • Due to digitisation, you can conveniently apply for a loan online. Check whether the Pre-Approved Personal Loan is available with your lending institution or not. If it is, check your eligibility and apply for it. 
  • If you are eligible, download the application form from the website & submit the duly-filled application form. Put the loan amount you need & choose flexible repayment tenure.
  • Since it is an instant loan, it will be credited in a very short time if you provide the required documents and meet the eligibility criteria. 
  • Lending institutions may ask for documents like your identity proof, address proof, employee ID Card, past three months’ salary slips, etc.
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Here are some tips to increase your chances of getting a pre-approved personal loan:

  • Always maintain a high credit score & good repayment record.
  • Maintain at least a 6 months gap between loan applications.
  • Always maintain an average balance in your account.
  • Focus on your income source.
  • Be careful when choosing your lender. Read all the terms and conditions along with the pre-payment policy and processing fees. 

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