A pre-approved personal loan is where the applicant is already eligible to make use of such a loan. The Banks and NBFC'S concerned approved him or her. These loans are similar to regular loans, i.e. short-term, unsecured loans with no end-use limitations.
The only distinction between regular personal loans and pre-approved loans is that a borrower must apply in the former case and have their documentation and credentials validated. in the latter case, the credentials and records of a creditor shall be pre-verified.
Benefits of Pre-approved Personal Loans Are:
High Loan Amount: Pre-approved consumers may also benefit from a high loan amount depending on their approval of their loan offer. In addition, such loan volume may be used for multiple reasons and has no limits on it.
Quick Disbursement: Given that these loans are pre-approved, disbursement is just a short amount of time. People typically need to review their pre-approved offer on the website of the bank, request for a loan amount based on their eligibility and then apply. The amount of the loan gets credited within mins to the borrower 's account. Pre-approved loans are therefore an perfect way of tackling emergency expense.
Less Documentation: A Banks and NBFC'S pre-approved customers who apply for a personal loan with it either do not need to go through the paperwork process or it greatly reduces. In fact, as an current lender's client, the specifics of an borrower are pre-filled out in the loan online application, which also saves a lot of time.
How do you get pre-approved personal loan in India?
To get pre-approved for a personal loan in India, you will mainly need to be a Bank or NBFC's long-time client. Though, being an existing lender's customer simply doesn't eligible you for a personal loan. Below are Certain factors also affect your pre-qualifying eligibility.
Credit History: You have to be consistent with paying back your current loans. This is the most important aspect that borrowers look at when determining to choose whether or not pre-approve you as a borrower. When you are reliable, this shows credit management discipline and gives you control.
Income: You should also have a stable and consistent income source to pre-qualify for a personal loan in India. The credibility of your employer plays a vital part in this regard. A renowned employer converts into stable jobs. In fact, if your salary is high enough, it will increase the probability of making the lender pre-approve.
Cibil Score: Probably the most important factor of pre-qualifying for a personal loan is credit score. This score is between 350-900. This is taken from the credit report comprising your credit history, and the inquiries of the lenders in your name. The Credit Score is decided by the Credit calculation agency CIBIL . Such a score therefore represents your creditworthiness, and the danger you present to the lender as a borrower.
Outstanding bills must be settled on time: It's also really important that you pay the unpaid bills (like a credit card) on time. This represents the consistency and accountability with which borrowers are well placed. Timely settlements of unpaid bills go on to demonstrate you 'd still made good of your personal loan that was pre-approved.
Maintaining monthly Balance: Finally, if you keep a decent enough balance in your savings account, it adds weight too. It guarantees your repayment ability to the lender, and boosts your pre-qualification chances.
Your credit report is one of the most important factors when it comes to deciding your eligibility for a particular loan.
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