Pre-Approved Loan

Know All About Pre-Approved Personal Loans

Personal loans are one of the most accessible funding instruments borrowers can avail when facing emergency cash crunches. These loans do not require any collateral or extensive documentation. Pre-approved personal loans are promotions offered by lenders to selected customers. The customers are approached with the best offers by the lenders. A pre approved personal loan means that the applicant has already passed the first approval process and can take the next step with minimum formalities involved. However, pre-approved loans do not guarantee loan approvals; they only expedite the approval process. 

Features of Pre-approved Personal Loans

  • Instant Funding

Pre-approved loans are given after an eligibility check; hence these loans are quickly approved and disbursed within a day. Additionally, the loan processing time is drastically reduced if the borrower has previously taken loans from the same lender.

  • Special Discounts

Customers who qualify for pre-approved loans fall under the low-risk category. So, the lenders offer the best deals in terms of lower interest rates, processing charges, penal interest, etc. It helps the borrower negotiate better with the lender for the best offers. One can also negotiate for special offers like EMI holidays and other waivers to further reduce the debt.

  • Lesser Documentation

Since most lenders offer pre-approved loans to existing customers, the documentation is lower or almost nil. This is because the lenders already have the KYC and income details. One can easily get an instant personal loan based on the credit score and other essential documents. 

  • Easy Eligibility

To qualify for pre-approved loans, the lenders usually check that the customer has a good credit history and clean repayment records. The borrower should also be an existing customer. These factors qualify one for easy eligibility.

The pre-approved loan offers are valid only for a certain period. If you are looking to get instant funding, apply for a pre-approved loan now!

Must Read: Which is the Best Way to Avail an Online Personal Loan?

All you Need to Know About Pre-Approved Loan

Now and then you might have received emails and messages about pre-approved loans. While some of them might be fake, some are actually sent by lenders. Wondered why?

Let us learn more about the pre-approved loan. Pre-approved loans are zero collateral short-term loans provided by lenders to their loyal customers who have a good credit score. 

What are the key features of pre-approved loans?

If you have a personal loan requirement and not sure how to get one, a pre-approved loan can help sort your problems. Some of the features of pre-approved loans are:

  • Minimum paperwork: With a pre-approved loan you do not have to worry about any documents or paperwork. Based on your credit score you already have a loan with zero paperwork. 

Fast processing: The pre-approved loan can be processed fast and with minimum hassle. 

  • Simple application procedure: While many other loans have long application forms that you are required to fill, the pre-approved loan requires just some personal details, and you are done.
  • Favorable interest rates: As the pre-approved loans are after taking care of all the necessary details like credit score, the interest rates are favorable and EMI is easy to pay, which you can calculate your EMI using the Personal EMI calculator.

Pre-approved loans can be a lifesaver for your financial requirements as the approval takes less time. With only just a click you can get all your finances sorted. But make sure you check all the details before you go for the pre-approved loans. 

Must Read: What Are The Factors That Affect Personal Loan Interest Rate?