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A full guide to a Pre-Approved Personal Loan

3 min read

An instant loan is one of the convenient ways to deal with unexpected expenses or immediate needs. There is a wide range of personal loan apps that offer to serve all the loan related needs to their customers.

 

A personal loan is unsecured financial assistance i.e. the lender will not ask you to pledge any collateral to avail this loan. As there is no security taken against it, its rate of interest is generally high. Also, it is readily available through quick personal loanapps after easy verification. It has no restrictions on its end-use. Therefore, this fund can be utilized for any purpose – Travel, Education, Wedding, Home Renovation etc. But applying for it through a bank can be tedious given the lengthy process, stringent criteria for eligibility etc. Hence, personal loan apps are a convenient medium through which one can avail of an instant loan very easily.

 

What is a pre-approved loan?

 

Hundreds of such SMEs or phone calls from bank executives may have arrived in your inbox, congratulating you on being only a few steps away from receiving a pre-approved loan in your name. The question remains, is the offer enough for one?

 

Pre-approved loans are typically unsecured, collateral-free personal loans that can be obtained from banks, NBFCs, or fintech lenders for someone with a good credit score. They are like traditional loans in nature, with the exception that the bank is reaching out to you to lend. Simply put, if you receive this bid, it means your creditworthiness has already been determined to be favourable.

 

What are the eligibility criteria?

Customers with a strong credit score, a good current bank balance, a significant savings history, good wages, and a good repayment history are usually deemed eligible for a pre-approved personal loan. You can ensure a good credit score by making timely repayments of your credit card bills.

 

What are the documents required to avail of a pre-approved personal loan?

 

The application process is hassle-free, as the lenders offer pre-approved personal loans to their existing customer base. So, the process requires minimum documentation or may not require any documentation. However, if you are not a pre-existing customer for the lender you may have to go through the documentation process where you will have to submit one of each – ID proof, address proof, 6-month bank statements, 3-month salary slips, etc. You can avail yourself of quick personal loans with the convenience of mobile apps.

 

Key points to remember before availing of a pre-approved offer

 

  • It’s worth noting that pre-approved loans are simply ‘Invitation to Apply’ deals that are only available for a limited time. The customer must submit his or her application within the prescribed time frame.
  • To inquire about the foreclosure charges with the lender
  • Also, check if the processing charges are inclusive in the offer or separate
  • Read through the terms and conditions
  • To compare the features & interest rates before application

 

Benefits of a pre-approved loan:

 

  1. Quick processing

The processing is quick, in some cases even within minutes as the lender has already reviewed your creditworthiness, and the loan is disbursed.

  1. Best interest rates

Since you were chosen by the bank or the financial institution, the lender would provide you with the most competitive interest rate.

  1. Fast disbursal

With the growth in mobile loan apps, lenders have digitalised the application process of the loan. This leads to quick disbursal of the amount right in your bank account.

  1. Easy repayment

Pre-approved loans allow you to select a repayment period that is convenient for you. The majority of banking intuitions give repayment terms ranging from 12 to 60 months.

  1. No justification required

There are no limits or limitations to how it can be used. You can spend the money on whatever you want.

 

How do I apply for a Pre-approved loan?

 

You can check your pre-approved offer for a personal loanon the mobile loan app from the lender. Just log-in to the mobile app and go to the notifications section to check your pre-approved section. Select apply now to avail of the offer.

Bajaj Finserv offers an instant personal loanof up to Rs 25 lakh with minimal documentation, easy to meet eligibility criteria, quick loan disbursal, affordable interest rates and flexible repayment tenure. You can check out your pre-approved offers with the mobile loan app by the lender. Simply login and register, fill in the required details to check out the pre-approved offers section.