Today, having access to quick money can prove to be a lifesaver, especially when urgently required. A pre-approved Personal Loan is a hassle-free and convenient way of acquiring finance without going through the lengthy application procedure. But how do you become eligible for it? Understanding the eligibility criteria and what influences approval can assist you in taking the most out of this financial opportunity.
What is a pre-approved Personal Loan?
A pre-approved Personal Loan is an unsecured loan offered by a bank or NBFC on the basis of your creditworthiness and past financial record. In contrast to a standard Personal Loan, where you must apply first and furnish documents to get verified, a pre-approved Personal Loan is presented to you in advance. Banks or institutions evaluate your financial health, earnings, and repayment history before making this offer.
What are the requirements?
You usually need to satisfy some conditions to get a pre-approved Personal Loan. Lenders usually extend this facility to existing customers who are financially responsible. The critical factors are:
- Good credit score: A healthy credit rating tells lenders you can repay your loans quickly. They need a 750 or more rating to send you a pre-approved Personal Loan offer.
- Reliable income: A steady and adequate income will convince lenders that you can cover monthly payments without defaulting.
- Existing banking history: If you have a Savings Account, salary account, or other financial accounts with a bank, they will consider you for a pre-approved Personal Loan as per your transaction history.
- Good repayment history: If you had borrowed loans in the past or utilised Credit Cards and paid the bills on time, your eligibility for a pre-approved Personal Loan will be extremely high.
Are you eligible?
Several banks inform qualified customers of pre-approved Personal Loan proposals through sms, email, or mobile banking apps. You can also see your eligibility using:
- Net banking website: Login to your bank’s net banking website and look under the ‘pre-approved loans’ tab.
- Mobile banking application: Go to the loan offers section in your bank’s application to check whether you have any pre-approved Personal Loan offers or not.
- Customer care: Dial your bank’s customer care to ask about existing pre-approved Personal Loan offers.
How to take a pre-approved Personal Loan?
- Log in to your bank’s net banking or mobile banking application.
- Go to the ‘pre-approved Personal Loan’ option.
- Check the loan amount and interest rate that has been extended.
- Accept your offer by choosing the loan amount and tenure you desire.
- Get instant approval, and the money will be transferred to your bank account.
Things to consider before applying
Personal Loan apply options can be confusing sometimes; you must compare interest rates to ensure a competitive deal. Repayment terms are essential to know, and you can estimate monthly repayments using a Personal Loan emi calculator. Most importantly, borrow responsibly and take only the amount that you can repay. Taking loans individually can serve you well in terms of obtaining better loan terms.
Conclusion
A Personal Loan apply option provides an easy way to access money with less formality. Always read the terms of the loan before accepting the offer to be well informed. If you are thinking of a Personal Loan apply option make sure you fit all the requirements and opt for the best one available.
