What are the benefits of pre-approved loans?
Loans distributed to a particular set of customers who already have a credit facility with the lender are known as pre-approved personal loans. You do not need any collateral as security and require minimum documents for its approval. You can access this facility instantly with a good repayment record and credit history that you share with the lender. It is the bare minimum personal loan eligibility as the customers already shares most of the required information. As a customer, you can choose this financial product because of many reasons as there is no specific purpose mandated by the bank.
The loan type is offered by many banks and non-banking financial institutions, such as the Bajaj Finance personal loans is also offered on a pre-approved basis. This product is offered to make priority customers meet their urgent need for the money, to expand business operations, and for a considerable decrease in loan disbursal time. The interest rate provided on a pre-approved loan is in the range of 10.49% to 14% per annum. However, it can vary from bank to bank, and you must pay attention to it before applying for a loan.
What are the features of a pre-approved loan?
The primary features of a pre-approved loan are as follows:
- Minimum documentation
It is an instant loan product that is easy to obtain. The entire application process is hustle-free due to minimum documentation requirements. Since banks provide this loan type only to priority or trusted customers, they ask for the minimum possible documents for approval.
- Quick approval
A pre-approved loan is a quickly approved financial product as the name suggests. If you are a long-time customer of a bank or an NBFC you can easily avail products like Bajaj finance personal loan, and once you apply, the loan amount can be disbursed directly to your bank account in a short time post approval.
- Repayment methods
The pre-approved loan gets repaid as Equated Monthly Installments or EMIs. If you have an existing account with the loan-providing bank or lender, there is an auto-debit facility available. Here the EMI will be deducted automatically from your bank account. Generally, the loan repayment tenure ranges between 6 to 12 months.
- Loan amounts
The amount that an individual is eligible to borrow might vary according to their respective net-worth and individual credit history. The amount sanctioned to a customer also depends on various other factors like ongoing loans, if any.
Lenders charge various fees from customers like security fees, processing charges, penal interest, foreclosure charges, EMI bounce charges, and collection fees during and after the disbursal of the loan. The amount of these charges can differ from lender to lender.
What are the benefits of pre-approved loans?
The various benefits of pre-approved loans are:
- Quick Funding
Pre-approved loans are a quick mortgage product where the money gets instantly disbursed to the borrower’s bank account. When you need urgent funding in any financial crisis, you can rely on it to get quick access to funds if you are eligible. In cases like Bajaj Finance Personal loan you get the loan amount on the same day you have applied. Thus you can use the money for any purpose.
- The application process is simple.
Banks and other financial institutes provide pre-approved loan services only to good and trusted customers. Due to this fact, the entire application process is seamless. You need minimum documentation for approval. Unlike other loans, the lenders do not ask for any asset to use as collateral. You will get all these benefits once you earn the position of a trusted customer of a bank.
- Quick processing time
Once you are eligible and your verification is successful, it takes minutes to get the loan amount in your bank account. You will not be subjected to severe scrutiny and can choose loan tenure according to your budget. It ranges from 12 to 60 months. Choose a period wisely according to your financial capacity.
What are the eligibility criteria for pre-approved loans?
The personal loan eligibility that you must fulfill is:
- A good credit history
- A clean repayment record
- An existing bank customer
If you are not a bank customer, do not worry because certain banks also provide personal loans to new customers. We hope that this information about pre-approved loans will be helpful to you before applying for the same. To know more about pre-approved personal loans, kindly visit Andromeda Loans and connect with us.