You may get the best instant loan from a bank or NBFC if you need finances for personal needs such as festival festivities, wedding expenses, house improvement, etc. A personal loan is an unsecured loan. Hence no collateral is required to get one. You need to supply the lender with basic information about your income and provide a few papers, such as confirmation of your name, residence, and payment.
If your credit score is over 750, your application for a personal loan will be accepted with the best possible conditions. There is, however, a method to avoid this whole approval procedure and get a personal loan practically immediately.
If you have a solid credit record, specific lenders may have already accepted certain pre-approved personal loan offers based on your credit history. These loans are referred to as pre approved personal loan. Lenders often contact you by email or SMS if there is a pre-approved loan offer. Typically, pre-approved personal loans are completed immediately since your eligibility for the loan offer is not verified.
Features of pre-approved personal loans
The following are characteristics of a pre-approved personal loan:
Since the loan has already been granted based on your credit score, you are not required to provide any documentation as proof of income. Your loan might be given without identification and address verification documents if you already have a connection with the lender.
Since the lender has already determined your creditworthiness, completing the loan does not take long. The funds will be sent to your bank account within 24 hours as soon as your application is accepted.
Like other personal loans, a pre-approved personal loan does not need collateral.
Banks and NBFCs are often more accommodating regarding the duration of pre-approved personal loans. You may pick a term length between 12 and 60 months, based on your needs.
Variable loan amount: In the event of a pre-approved loan offer, the loan amount fluctuates across persons. The pre-approved loan amount depends on your creditworthiness and other factors.
Advantages of pre-approved personal loans
Below are some of the advantages of a pre-approved personal loan:
Since the lender has already pre-approved the loan offer, you can rest confident that your loan will be handled properly and the funds will be sent into your bank account. However, your loan application may be denied if your credit score is too low or you cannot provide the appropriate documentation.
Since the loan has already been accepted based on your credit score, the lender will not verify your eligibility. Consequently, the processing period for the loan would be significantly reduced. In some instances, the loan is processed practically immediately.
Several lenders provide a pre-approved personal loan with reduced interest rates if you have a strong credit history. The interest rate on pre-approved loans is often lower because only those with a high credit score and a reasonable payback history are eligible for these loans.
Since the loan is pre-approved, you are not required to provide evidence of income to the lender. Moreover, if you already have a connection with the bank/NBFC, you may not be needed to provide identification and address documentation.
Unique offers: To entice you to take up a pre-approved loan, many banks and NBFCs provide special perks, such as processing fee exemptions and EMI holiday benefits, on pre-approved loans.
Eligibility for a personal loan with pre-approval
It is relatively straightforward to qualify for a pre-approved personal loan offer from a bank or NBFC. You will often get a pre-approved loan offer from a lender if:
You have an excellent credit score, ranging from 700 to 750 or above.
You have an established rapport with a lender. For instance, you are more likely to get a pre-approved loan offer from a bank with whom you have an account.
How to apply for a loan with pre-approval
The application procedure for a pre-approved personal loan is relatively straightforward. You are often notified through text or email if you get a pre-approved loan offer from a bank or NBFC. You may also inquire about personal loan pre approved offers with the lender of your choice. Once you are aware of the pre-approved offers, you must take the actions outlined below to get the loan:
Submit a properly completed loan application to the lender. You may locate the form on the lender’s website or at any concerned bank/branch NBFC’s offices.
Select the desired loan amount and duration. Because this is a pre-approved loan, you may only borrow up to the maximum amount allowed.
After filing your application, the lender should not take too long to process your loan request. The loan amount is typically delivered within 24 hours.
Despite contemporary finance’s efficiency, securing the best instant loan is not simple. Thankfully, options such as the pre-approved loan have greatly simplified the situation. A pre-approved personal loan is a short-term loan offered to current clients by lenders. This speeds up the process of acquiring a loan and provides rapid access to a sanction, sometimes at reasonable interest rates. In reality, with a contemporary lender, you may access the offer, accept it, and get disbursement without ever having to visit the office. This is a significant advantage as a borrower since it allows you to bypass the usual hassles associated with obtaining a loan.
However, to qualify for such pre-approved offers and deals, you must have a consistent repayment history and a robust financial profile since these are the most critical aspects for lenders. In addition, you will need a good credit score to qualify for such short-term loans readily. In addition, if you have an existing connection with the lender, you may immediately be eligible for the Bajaj Finserv pre-approved personal loan.