Personal loans are unsecured loans that do not require security or collateral and are available with minimal documentation. Good credit history and a good repayment record are the only requirements for being eligible for a pre-approved loan offer facility. Non-banking financial companies (NBFCs) and banks in India currently offer pre-approved loan facilities to increase their loan products’ sales and meet customers’ urgent financial needs. Personal loans can carry an interest rate starting at 13% per annum or sometimes even lesser. There is, however, a possibility that the interest rate on a personal loan may differ from one lender to another. Therefore, before applying for a personal loan, you should perform a loan offer check with the lender to confirm the interest rate.
Eligibility for a personal loan
- Individuals must have a good credit history to qualify for a personal loan.
- Individuals should be a citizen of India.
- Individuals should be between 21 years to 67 years of age
- Individuals should have a stable income source and meet minimum income criteria to get approval for a personal loan.
Steps to avail of a pre-approved personal loan
- To get a pre-approved personal loan, you should first do a loan offer check provided by your lender.
- Check if you are eligible for a pre-approved loan through your lender’s website or mobile app.
- If you would like to apply for a loan, you must fill out an application form at the financial institution’s branch office or website.
- Select the appropriate loan amount and repayment period for the loan you need.
- If you accept the loan offer, the lender will credit your loan amount to your bank account.
Benefits of Pre-approved Personal Loan Offers:
Quick funding or instant funds
The benefits of pre-approved loans makes them a valuable safety net for when you need urgent financing to meet your financial obligations. The loan will be approved and disbursed within a few minutes after completing the verification process. After that, it is up to you to decide where to utilize the loan amount.
Competitive interest rates:
In case you have a good credit history, you may be able to receive an instant loan offer. A clean repayment record indicates that you are a financially disciplined person. Therefore, the lender will likely offer a competitive interest rate for the loan, and you can also do a loan offer check to grab the best interest rate.
Flexible loan tenure:
If you want to repay your loan over a convenient period, you can choose a tenure according to your choice. However, it usually ranges from 12 months to 60 months. When choosing the loan tenure, it is essential to consider your repayment capability to ensure that you do not default on your loan repayments.
Minimal to no documentation:
There is no need to worry about the documentation if you are an existing customer eligible for instant loans. The lender already knows your KYC details, bank account details, and income information. However, in some cases, the lender might ask for a few basic documents.
Paperless loan application:
Most lenders offer online loan applications that can be filled out and submitted via their website or mobile app. In addition, there are several ways in which you can upload documents to the lender’s website or mobile app in the required format.
Quicker processing time:
Because you have already passed the eligibility criteria for the loan offer check, you will not have to undergo additional scrutiny. If your documents are in order and all financial information is accurate, you may be able to get your loan approved and disbursed within a day.
Lenders often offer small benefits to entice you to take out a pre-approved personal loan, such as waiving processing fees and lower interest rates. If you need a loan, their perks will help reduce your overall estimated debt.
In most cases, getting a personal loan is simple and hassle-free, as long as you have a good credit rating and credit history. Additionally, a suitable lender will not only provide you with a competitive interest rate but also work with you to tailor your repayment plan so that you can repay the loan on time, depending on your cash flow situation.