How do I get an approved personal loan?
A lot of users have received text messages or emails from banks and numerous other lenders advising us that we’re qualified to get an approved personal loan. Sometimes, we’re told by the relationship managers of banks that we are just a couple of steps (or clicking) away from being able to receive an approved personal loan. Let’s look at what this means and if it’s possible to get around all the steps to get the loan.
What exactly is a personal loan that has been pre-approved?
A pre-approved personal loan is a unsecure credit that banks and financial institutions when you have a great credit score, a good credit score and a good repayment history. If the borrower has paid all EMIs punctually, and consistently displaying good credit scores and has a good credit score, banks are likely to approach the person with an offer. Even those who have solid savings, and a regular income are qualified for a pre-approved personal loan. It’s basically an instant personal loan provided by banks with no or minimal documents that require the least amount of processing time. Personal loans are used by those who need them to pay for their immediate needs in the short term whether it’s house repairs or marriage, foreign holidays or medical emergencies, without the requirement of providing an asset or collateral however, they must provide basic proof of bank records and history. Being approved for pre-approved personal loans allows you to access this fast loan because it does away with the bulk of forms and documents.
Eligibility for personal loans that have been pre-approved
To be eligible to obtain personal loans that are pre-approved Certain criteria for lenders must be fulfilled by the borrower. These include:
• A credit record as we’ve stated earlier, if the person has a solid repayment history and has consistently paid off his bills, debts as well as other transactions that that are systematic, banks are likely to give you credit that is pre-approved for personal use. The CIBIL rating of 750 or over indicates that the person is financially responsible.
• should be an existing customer of the company. An extensive and established track record of transactions of a current bank can be beneficial since banks are loyal to their customers. A positive rapport with banks is an advantage. Certain banks are willing to lending loans to new customers too.
• A stable savings and income history A steady income, and no credit history, as well as adequate savings in your accounts will help you when it comes to getting an approved personal loan.
If you meet the above requirements and you meet the above criteria, you can contact the bank or go to their website to determine whether they have an approved personal loan to help meet your financial requirements.
The top banks provide pre-approved loans
Name of the bank The amount of the loan Interest rate Processing fee Repayment tenure
State Bank of India The discretion is the bank at its discretion. at the discretion of bank at its discretion. NIL The discretion is the bank at its discretion.
ICICI Bank All the way to Rs.20 lakh 11.25% and up 1.25 percent of the the loan amount plus GST For up to 60 months
HDFC Bank As high as Rs.15 lakh 10.75% and up 2.5 percent of the loan amount subject to a minimum amount of Rs.2,999 and a maximum amount of Rs.25,000 For up to 60 months
Aditya Birla Capital As high as Rs.15 lakh 14% and up at the discretion of bank at its discretion. For up to 36 months
IDFC First Bank Rs.1 lakh from now onwards 10.75% and up NIL For up to 84 months
How do I get an approved personal loan?
Most lenders contact their clients to inform them of their personal loan eligibility that has been pre-approved If you’re in need of personal loans and have been responsible with your financial transactions You can contact the bank or go online to determine your eligibility. After you’ve been informed that you are eligible to apply for this loan at any time follow these steps to follow
• Find the branch nearest to you or go to the bank’s website and fill out the application form.
• Choose the loan amount and duration.
• Provide documents if needed (PAN card or income proof, or address evidence)
• The details are checked by the bank. The loan is paid out and credited to your account within a few hours or even days.
Comparison of interest rates
Most of the top bank and NFCs across India provide pre-approved personal loans for eligible customers. Here’s a comparative of the pre-approved interest rates of the major banks and NFCs within India –
Provider Name Interest Rate*
State Bank of India 9.60% and up
HDFC Bank 10.50% and up
Axis Bank 11.00% and up
ICICI Bank 10.50% or more
Bajaj Finserv 11.49% and up
Kotak Mahindra Bank 10.50% or more
IDFC First Bank 11.00% and up
Benefits and features of personal loans that have been pre-approved
The tiniest amount of paperwork and no documentation As the first assessment as well as assessment of a person’s credit score has been completed through the loan provider, there’s not any paperwork or other documentation needed by banks. Since credibility has been established and established, the process will be without the need for complicated or bulky documentation. The bank already has all your information regarding your earnings, KYC etc. in their database.
Speedy process Fast processing time it takes to process the loan may be several hours if all eligibility criteria have been fulfilled by the applicant. If you’re an existing client of the bank, the loan amount is likely to show on your bank account in only a few minutes following the initial check of your credit record.
There is no security or collateral -Borrower does not need to pledge collateral or security to obtain the pre-approved loan. This applies regardless of whether the loan isn’t instantaneous.
Priority interest rates for borrowers with higher credit scores. Since the pre-approved personal loans are available to those with a strong savings and credit and savings, borrowers can avail low rates of interest which are typically lower than normal rates.
Flexible repayment the term for repayment could be any time between 12 months and 60 months. Borrowers can pick the repayment term at their discretion.
Discounts and offers Offers and discounts Banks could offer you special interest rates or even waive processing fees because they already have a good impression of your past repayment record.
The disadvantages of personal loans that are pre-approved
• The loan that has been pre-approved may only be valid for a short period of time or for certain times
• If any discrepancy is that is discovered during the process of applying the loan could be refused. A pre-approved loan does not always guarantee immediate disbursement. Sometimes it is rejected.
• The interest rates could increase. Some banks could increase interest rates in order to offer you the opportunity to get a loan quickly. It is therefore important to be on guard and aware.
Always keep in mind
Keep a good score on your credit Be consistent in the payment of your credit card bill. Be a responsible and responsible customer it will give you instant loans that have high interest rates when needed.
Keep track of all pre-approved loans This could be announced at certain times of the year or even months. It is therefore advisable to be aware of these announcements by your lender regularly.
You must do some research Conduct a thorough study of the available personal loans offered by different lenders. You can also compare the rates of interest and opt to the loan that best matches your needs.
Learn about other fees Make sure you understand the processing fee, prepayment charges and pre-closure costs banks request to offer credit that is pre-approved for personal use.
Unexpected events can come at us, and in moments of crisis, having a financial cushion is always helpful. Although personal loans can be used for many reasons but a pre-approved personal loans can ease your life by providing credit and cash disbursement quickly without the need for paperwork or documentation. So, it’s important to keep your credit score up and keep your finances in check to qualify for these fast loans.
How do I get an approved personal loan?