You will usually see or hear that you or your acquaintances often receive e-mails or messages which state that you are eligible for a pre approved personal loan and that you Can take a loan. Have you ever wondered why and how the bank approved such a loan without your application? Would not have thought Therefore, through this article, we are going to give you information about pre-approved personal loans.
What is a pre approved personal loan?
A pre-approved personal loan is a collateral-free short-term loan, usually approved for people with excellent credit scores. This type of loan is offered by banks to customers who meet certain existing criteria. The bank identifies the money needs of its customers through various processes and offers such that eligible customers can avail loans at a low interest rate at their convenience.
Key Features of Pre Approved Personal Loans
- The application process is paperless and completely online.
- The process is relatively quick and requires very few documents.
- Special offers like low interest rate and repayment as per your convenience are available by the bank.
- Processing fees are low and there are no additional fees.
Eligibility Criteria for Pre Approved Personal Loans
- Pre-approved loans are usually offered to customers who have been associated with the bank for a long time and who have good banking transactions and good relations with the bank.
- If you have a good credit score, good bank balance, regular and adequate means of saving, good income and very good repayment history, then you can avail this loan.
- Pre-approved loans are approved to a certain extent, which are evaluated and determined based on your credit score.
Documents required for taking a pre-approved loan
Generally, such loan is sanctioned by the bank to its existing customers. Therefore, its process is short and no special documents are required. You can complete the online process and get the loan by completing various steps by clicking on the pre-approved loan offer that came in your email.
But if you are not an existing customer of the bank, then you have to submit the following documents for verification –
- Bank statement for last 6 months
- Salary slip of last 3 months
- Proof of identity
- proof of address
- KYC documents
Benefits of pre-approved personal loan
Pre-approved personal loans have the following benefits –
Availability of money at nominal time – Such loans are approved in a very short time. If your profile meets the eligibility criteria, the money is easily approved. If you are an existing customer of the bank, then the money comes into your account within a day.
low interest rates – Pre-approved loan interest rates are relatively low. This is because banks approve such proposals based on the credit score of the customer and the history of repayment. Banks offer this to only a few select customers and the banks know that your income is stable. Hence banks offer loans at a lower rate of interest.
Can be used anywhere – There is no limit to using a pre-approved loan. You can use such loan money to fulfill any of your requirements. You are not required to state the purpose of such loan.
Acceptance without documentation – Existing customers generally do not have to submit any documents, as the bank already has your documents. It also has information about your credit score and repayment.
Flexible repayment period – You can choose the repayment period for this type of loan yourself. Their repayment period is usually from 12 months to 5 years. You can repay the loan in monthly installment.
Application for pre-approved loan
When a pre-approved loan proposal comes to you, you can apply for it through an easy process. You can accept the offer online from home from Assam. You can approve it by completing some formalities while talking in the bank and giving general information. After completion of the formalities, the approved amount is deposited in your account. You can apply online by following these steps –
- Login to net banking account and request through it.
- Click on the loan and select the ‘Pre-Approved Loans’ section.
- Click on ‘Apply Now’ option to accept the pre-approved loan offer.
- Select the type of loan and fill the application form.
It is beneficial to do a little research before applying for such a loan. Through research, you can find the best option for you.