Instant pre-approved loans are personal loans given to specific customers. It only needs a few pieces of paper and no collateral or security. To get an instant pre-approved loan, you need a good credit history and a history of paying back loans.
In India, many banks and non-banking financial companies (NBFC) offer this type of loan facility to increase sales of loan products, meet customers’ urgent financial needs, and reduce the time it takes to give out loans. For loans that have already been approved, the interest rate can be anywhere from 13% p.a. But the interest rate may differ from lender to lender, and you should ask the lender what the rate is before taking out a personal loan.
Financial institutions offer pre approved personal loan to promote their loan products and get more people to buy them. You may be chosen as an eligible customer for one of the following reasons:
- The lender may have looked at your credit score and found that you are a good customer. They must have also checked your credit history and seen that you have a good bank balance and a high number of transactions.
- You may have availed of a loan before and paid it back on time.
- The lender checks your income and spending rates to see if you are a reasonable credit risk.
Advantages of personal loans already approved
- Instant money or fast loans: Getting pre-approved loans is a safety net when you need money quickly to take care of your financial needs. Once the verification process goes well, the loan will be paid out on the same day. You can use the loan amount for any personal or professional purpose.
- Competitive interest rates: Your clean repayment record indicates financial discipline; hence, the lender will offer the loan at a competitive interest rate as you don’t fall under the lender-risk/credit-risk category.
- Flexible loan tenor: You can choose a loan repayment period that suits you. It usually ranges between 12 and 60 months. Consider your repayment capability when selecting the loan tenor so that you don’t default on loan repayment.
- Minimum to nil documentation: Existing customers eligible for instant loans need not worry about documentation as the lender will have your KYC, employment, and income details in their database.
- Paperless loan application process: Most lenders offer an online loan facility wherein you can get a pre-approved loan through their website or mobile app by filling up and submitting a few basic details along with some primary documents.
- Faster processing time: Since you already met the requirements for the loan, you won’t have to go through a lot of scrutiny. If your paperwork is in order and your financial information checks out, your loan could be paid out the same day.
- Power to negotiate: In a pre-approved loan, instead of going to the lender with a request, the lender comes to you with a product. This means you have the power to negotiate the loan terms. For example, you could lower the interest rate or make the loan last longer.
How can I get a pre-approved personal loan?
You can check if you’re eligible for a pre-approved personal loan by following these simple steps:
- Visit the website of the lender you want a loan from and go to the pre-approved personal loan page.
- Enter basic personal details such as your name and contact number.
- Provide the OTP that you receive.
- Once verified successfully, your pre approved loan offer details will be displayed on your screen.
- To avail of the same, you must follow the steps and provide a few primary documents.
- To get pre-approved fast loans, you need a high credit score, a good credit history, a good record of paying back loans, a stable source of income, and sufficient funds in your bank account.
- Check with your lender because these loans may only be available for a specific time.
- Don’t forget to talk to your lender about the terms and conditions of these loans, especially the fees.
- Do some research before you ask for an instant pre-approved loan. Compare the features and interest rates of other loan offers to those you’ve already been approved for and choose the one that works best for you.