What is a Pre-approved Personal loan?

Pre-approved loans are available to individuals when they have a clean record of transactions. This is possible after repaying your credits on time. This is usually available at reasonable rate of interest. A few lending institutions reach a decision to provide personal loan to its individuals even when they do not have a strong financial history. The evaluation is purely based on their income bracket and savings in the bank account.

Pre-Approved Personal Loan – What should you know?

A personal loan is an unsecured short lived loan, which can be used for a variety of purposes.  No security or collateral is required to fulfil demands for immediate expenses.  Whether it is a medical emergency, abrupt loss of job, or financing your marriage or education, a pre-approved loan is available for all urgent requirements. Infact, it can also be used as short term capital.

A personal loan has many advantages like paperless process, free of security/collateral, flexibility of money use, etc.  Though, its adverse for personal loans to have high interest rates. So it’s better to maintain high credit scores before filling in a loan application.  

Let’s understand a pre-approved personal loan now?

A pre-approved personal loan can be understood as a loan offer by banks when individuals have a clean past record and making timely payments of their past dues.  These personal loans are offered at extremely low interest rates.

A few lending institutions by norms pre approve a personal loan. This is purely based on a combination of factors, credit history, regular income and bank savings. It is a consolidated offer which is limited by time. We can quickly highlight the advantages of a pre-approved loan now. They require limited documentation, and disbursal within a day. It’s quite simple to have a pre-approved loan, just log into the net banking account and check if you have pre approved loan in your kitty. However, the final call depends on the credit history and trading policies.

Salient features of Pre-Approved Loans:

• Easy application
• Quick Processing
• Minimum paperwork
• No hidden charges

Advantages of Personal Loans:

• Flexibility of use
• Easy choice of repayments options with tenures between 12- 60 months
• No collaterals
• All-purpose loans 
• Simple online application with easy approval and disbursal
• Easy eligibility check

Disadvantages of Personal loans

• Very high interest rates on unsecured nature along with poor credit history 
• When the credit history is eroded, your loan application gets rejection 
• Whenever your personal loan gets approved, that also happens at high interest rate. In turn it increases your monthly outflow.

  

Can I avail a pre-approved loan without documents?

Many banks and financial institutions have attractive personal loan offers, without much documentation. Some of the features are as follows:

•    Instant Loan disbursal

•    Paperless and online

•    Minimum documentation

•    Specific rate of interest

Any pre-approved customers get the authority for special interest rates. If you’re an existing customer, then it’s possible for you to have no document personal loan. Simply login into your account and find your pre-approved loan.

It is also possible to have instant personal loans, if you possess credit cards of renowned banks/financial institutions. The personal loan amount exactly matches your credibility and market position.

So how does this pre-approved personal loan reach you? The credit limit stays blocked until the personal loan amount, specially till the time its fully paid off.

This offer of course is available for pre-approved individuals alone. You can easily check for your eligibility using the net banking platform.

Also read | What is the Perfect Credit Score for a Small Business Loan?