What is a Pre-approved loan & 4 benefits of a pre-approved personal loan

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We are sure you must have heard the term pre-approved personal loans. Are you wondering what a pre-approved loan is and whether it has any advantages? Well, so check out what this loan is all about!.

First, understand the meaning of a pre-approved personal loan:

  • To put it in simple words a pre-approved personal loan is an instantaneous loan that a financial institution gives to its select clients.
  • The client has to fulfill the eligibility criteria to be eligible for this type of pre-approved loan.
  • A pre-approved loan is a good option for those of you who are in urgent financial need. Keep in mind that these types of loans are approved instantly.

Take a look at the eligibility criteria of pre-approved personal loans:

  • Check out some of the reasons due to which a financial institution may consider an individual eligible to get a pre-approved personal loan:
  • Credit history is one of the most important factors for pre-approved loans. If you have a good credit score then financial institutions may consider you for an instant loan.
  • If you are not a defaulter in re-paying your existing loan and credit card dues.
  • If you are a credit-worthy person then there are good chances of getting pre-approved loan approval.
  • Having a good income source and a good bank balance can also be some of the factors that can play a key role in getting an instant loan.

Have you checked the key features of a pre-approved personal loan?

  • The entire process of applying for a pre-approved personal loan is very simple.
  • In the case of the instant personal loan, not much documentation is needed
  • There are chances that the individual can get preferential interest rates in the case of pre-approved loans.
  • There is negligible paperwork involved in the case of pre-approved loans.

Now it is time to check out the important benefits of a pre-approved personal loan:

  • Quick processing and instant funding of pre-approved personal loans:

If you are eligible to get an instant loan then the processing of the loan does not take much time. You have to apply for the loan online and submit the documents online. Once the verification process is completed and if everything is in place then the financial institution disburses the funds on the same day. You can then immediately use this personal loan for any of your financial needs.

  • The interest rate and loan tenure advantage of pre-approved loan:

Instant loan is offered to an individual who has a good credit history. Since the bank considers the person as a credit-worthy individual there are chances that the applicant can get the loan at competitive interest rates. Also, the person can choose the repayment tenure which is usually in the range of 12 to 60 months. While choosing the loan tenure the person must keep his repayment capability in mind.

  • Minimum documentation requirement of pre-approved loans:

In the case of pre-approved loans, not much documentation is involved. In the case of existing clients the bank or the financial institution has the KYC details and hence a paperless documentation process is followed. For new clients, a minimal documentation process is followed in which only a few documents like address and id proof, etc. have to be submitted.

  • No collateral and flexibility of usage of pre-approved personal loan:

In the case of pre-approved personal loans, no collateral is needed for getting the loan. One more thing to keep in mind is that this personal loan can be used for different reasons like paying utility bills, paying school and college fees for children, buying appliances, going on holiday, or for the management of wedding expenses.

Do you want to apply for a pre-approved personal loan?

If you are keen to apply for a pre-approved personal loan then here is what you need to do:

  • First, check online on the financial institution’s website or app if you are eligible to apply for the loan.
  • If you are eligible then fill up the online loan application form on the website or app of the financial institution and submit the same.
  • Next, submit the documents that the financial institution has requested along with the loan application. You can submit all these documents online on the website or app of the financial institution.
  • The financial institution checks the details and after the verification makes a loan offer to the client. Once the client accepts the same the loan is disbursed by the financial institution and the amount is credited to the bank account of the borrower. 

Check the details of the documents that have to be submitted for pre-approved loans:

  • The applicant has to submit photo id proof like Aadhar card PAN card
  • Residence proof also has to be submitted and this can be your Aadhar card
  • A bank statement also has to be submitted by the applicant
  • The applicant also has to give the last 3 months’ salary slip.

Keep these important tips in mind to get your pre-approved loans sanctioned:

  • Make sure that you have a good credit history if you want to get a pre-approved loan
  • Improve your credit score as a good credit score is a must for getting personal loans
  • For getting pre-approved personal loans having a stable source of income is very important
  • Make sure that you check the terms and conditions and also check the details of the applicable charges before you opt for the personal loan from any financial institution.
  • It is always better to compare the features, interests offered by different financial institutions before you apply for the pre-approved personal loan.

Summary:

If you are a credit-worthy individual then you have bright chances of getting a pre-approved personal loan. This instant loan offered by a financial institution can be used to fulfill your various financial needs. This type of loan has several benefits like no requirement of collateral or security, competitive interest rates, minimal documentation, etc.

 

Connect with Money View if you are keen to get a personal loan in hours at the earliest.