A pre-approved personal loan with low interest is disbursed instantly to pre-approved customers. It requires minimal documentation and does not require collateral. The only criteria for getting an instant loan are good credit history and good repayment history. Several banks and non-banking financial companies in India offer this type of loan facility using their personal loan app to boost loan sales, meet the urgent financial needs of customers, and reduce loan disbursal times.
A Personal loan meaning can be understood as an unsecured loan generally offered to borrowers with good credit ratings. It is also possible to check the EMI of a personal loan with a personal loan calculator available online. Interest rates for pre-approved loans can range from 10.49% p.a. to 14% p.a. However, the interest rates vary by bank, and you should always check the lender’s personal loan app before applying for a personal loan.
The objective of pre-approved loans is to increase the sale of the bank’s loan products. Below are some possible reasons that may qualify you for pre-approval loans
- Maybe the bank consulted your credit report and deemed you a good customer
- It might have noticed a good balance and transaction rate in your bank account because of your credit history
- There’s a possibility you have previously repaid a loan to a bank on time
- The bank might examine your income level and expenditure rate about your creditworthiness
Features of pre-approved personal loan
Fast loan disbursement
An existing bank customer or NBFC can receive a personal loan with low interest directly into their bank account.
Minimum requirements for documentation
Obtaining instant loans by personal loan app is easy since it does not require a lot of documentation to approve the loan.
Variable loan amounts
Pre-approved loan amounts vary from person to person. Customer credit history and repayment history influence the loan amount.
The loan must be repaid through Equated Monthly Installments. Customers with an existing bank account (lender) may opt for automatic deductions to pay their EMIs. Repayment terms range from 12 months to 60 months.
In addition to processing fees, lenders charge customers specific fees during and afterward, such as EMI bounce charges, collections fees, penal interest, foreclosure fees, etc. Different lenders impose different fees.
Quicker processing time
You will not face strict scrutiny since you already met the eligibility criteria. You could get your loan approved and disbursed within a day if all of your documents are in order and all financial information checks out.
Steps to apply for Pre-approved Personal Loan
- Ask your bank if you qualify for a pre-approved loan offer. By logging into your online banking account, you can see if you are eligible for a pre-approval loan.
- Apply for a personal loan with low interest with the lender’s fully-filled application form, which can be found on the lender’s website, in a branch office, by SMS, or as a personal loan app.
- Select a repayment term and loan amount according to your needs.
- You will receive the loan amount after the bank has verified your identity and accepts the offer.