A Complete Guide to Pre-Approved Personal Loans

Personal Loans

A personal loan is a type of loan borrowed by an individual from a bank or financial institution to meet his/her financial requirements.

A pre-approved personal loan is similar to a personal loan with the only difference that it is pre-approved in nature. It means that the bank has already approved your loan and you just need to apply for it and receive the money.

It is a kind of promotional exercise carried out by banks to increase the sale of their loan products. Let us take you through a complete guide about pre-approved personal loans.

Reasons why banks consider you eligible for a pre-approved personal loan

  • The banks must have reviewed your CIBIL score and credit history and found it suitable enough to offer you a pre-approved personal loan.

  • Banks usually analyze the income and expenditure of an individual to issue this type of loan. It makes it easier for them to analyze your creditworthiness.

  • When you make your loan or credit card payments regularly, banks consider you eligible for a pre-approved personal loan.

  • The banks also review your savings to find out your bank balances at specific intervals. If it is considered good, the bank will offer you pre-approved personal loans.

Features of a pre-approved personal loan

  • This type of loan is simple and easy to apply for as it is already approved to you by the bank beforehand.

  • Since it is already approved, the processing of the loan application is fast and requires minimal paperwork.

  • You can enjoy favourable interest rates while applying for this kind of loan.

Advantages of a pre-approved personal loan

  • Quicker processing time – This type of loan is processed quicker as compared to other loans. Since it is already approved, minimum documentation is required. If your paperwork is in order, it may get disbursed within hours. Since the bank has all your details, there is not much scrutiny involved.

  • Easy application process – Once the bank offers you a pre-approved loan, you can apply for it at any time and from anywhere, even from the comfort of your house or office. Hence, it is a hassle-free procedure.

  • Lower interest rate – Banks usually offer a lower interest rate on a pre-approved personal loan as compared to normal personal loan interest rates. Also, since the bank comes to you with the offer, you are at the advantage of negotiating with the interest rate and bargain for a lower one.

  • Special discounts Pre-approved personal loans also come with special discounts or perks like processing fee waiver, EMI payment advantage, flexi personal loan advantages, part-payment options and more.

Disadvantages of a Pre-approved personal loan

  • Limited time period offerPre-approved personal loans are offered by banks for a limited period. The bank may revoke the offer at any time as it is just a promotional activity.

  • Increased interest rate – Banks might charge an increased interest rate over a pre-approved personal loan. You must check the market interest rates before applying for one.

  • Fees and charges – In lieu of an offer, banks might charge an additional processing fee, higher pre-payment charges and pre-closure charges on a pre-approved personal loan.

Bajaj Finserv also offers pre-approved deals on personal loans, EMI finance, credit cards, and business loans and beyond. Such deals will help you go through the loan procedures hassle-free and make it less time-consuming.

All that you can do is share a few basic details such as your name and contact number to check out your pre-approved loan offers today.