Personal loans already approved by your lender before you even apply for them are called “pre-approved loans.” It is a service that most financial institutions offer to their current customers with good credit scores. You don’t have to put up anything as security to get this instant money loan. Personal loans already approved take less time to process and are given out faster, sometimes within minutes.
What is a pre-approved loan, and what can it do for you?
Personal loans that have already been approved have the following features and benefits:
1. Instant approval
Getting an instant pre-approved loan takes less than a few minutes from start to finish. So, a personal loan is approved digitally, and the money is sent to your bank account immediately.
2. 100% paperless
In most cases, you don’t need to send in any paperwork for a pre-approved loan personal loan.
3. Being flexible
You can get an instant money loan for up to Rs. 10 lakh, which you can pay back easily over 60 months.
4. No collateral
You don’t need to pledge any collateral or security to get a personal loan.
5. EMI calculator
The online Personal Loan EMI Calculator will help you calculate your EMI amount. You can change the loan amount and tenor to find the best EMI that fits your budget.
How to get pre-approved loans and who can get them
Most of the time, if you want to get a pre-approved personal loan, you have to meet specific minimum requirements.
Most private lenders have these requirements for who can get a loan:
Age: You must be a minimum of 21 years and a maximum of 67 years old to get a personal loan.
Occupation: To get a loan, you must be either a salaried worker or self-employed.
Income: Depending on what the loan provider wants, you should be earning the right amount of money to get the loan. Different lenders may have other income requirements.
Credit: Your credit score should be 750 or above.
Documents needed for loans to be pre-approved
Most private lenders need you to send them certain documents before they give you a pre-approved loan. Uploading documents online is easy and doesn’t take much time. In some cases, you might not need to submit any documentation.
To apply for pre-approved loans from private lenders, you need to send in the following documents:
- Proof of identity
- Proof of income, such as bank statements, pay stubs, etc.
- Age proof
- Proof of address
Things to check before accepting your pre-approved personal loan offer:
- You might want to ask the bank or NBFC how much the processing fee is.
- Instant pre approved loans are only good for a specific time. You must apply within that time to get a personal loan that has already been approved.
- Compare the interest rates and fees with other lenders for the best offer.
Tips on how to get a personal loan that is already approved
Here are some points to check if you want to get a pre-approved personal loan:
- Keep your credit score high. People with a credit score of 750 or higher can get a pre-approved personal loan with a lower interest rate.
- Keep an eye on your bank or NBFC to determine when they have a new pre-approved personal loan offer.
- Compare the terms and conditions, the processing fees, and the interest rates.
Myths about loans already approved:
Even though pre-approved loans are relatively common and well-known, there are still some myths about them.
Getting the loans is a sure thing:
Even if your loan is an instant pre-approved loan, that doesn’t mean you’ll get it. The final decision depends on the lender and the details you provide.?
There are penalties if you can’t meet the requirements or don’t pay back the loan in time, which you should consider. Paying your loan on time is very important because it could hurt your credit score.
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