Pre Approved Personal Loan

If the creditworthiness of a potential borrower is found to be eligible for a loan, lenders can offer them the opportunity to obtain an approved personal loan. Simply put, if you obtain this bid, your creditworthiness has been favorably assessed. If you want to apply for a loan during the bidding phase, your application will be accepted without problems, even within minutes in some cases.

Factors that require you to obtain a pre-approved loan

What is the basis on which a lender determines whether you qualify for the offer?

The following is a list of checks for a pre-approved loan assessment process:

· You have a really good credit score

· You are diligent to pay off your credit card bills ·

You’ve never missed the chance to pay your EMIs.

Your source of income is stable

You have maintained a strong balance in your savings account

If you receive a pre-approved loan offer, the lender has already recognized your creditworthiness and you do no need to undergo the initial screening which the borrower usually undergoes when applying for a loan. Nonetheless, you will need to submit the requisite identification documentation and other formalities if you wish to take advantage of the pre-approved loan.

What are the required documents for a pre-approved personal loan?

Proof of identification: Aadhaar Card, PAN Card, driving license, etc.
Proof of Address: Utility Bills, Voting ID Card, Adhaar Card, etc.

Income Proof: Last 3 month salary slips, statement of bank account, form 16, ITR, P&L, etc.

What are the advantages of a pre-approved loan?

Preferential interest rates: If a pre-approved offer arrives, a preferential (lower) personal interest rate will be offered. This is because the lender has already analyzed your ability to repay and knows your payment history and current financial status.

Flexible end use: Pre-approved personal loan does not affect end use and many personal reasons such as wedding, holidays, home renovation, etc. can be dealt with.

Online application: If a pre-approved personal loan is offered, you can easily apply online from your home or office

Minimum documentation: As an existing customer is offered a pre-approved personal loan and therefore requires minimum or no documentation

Fast processing: As the bank has extended the loan offer to you, it knows your record and needs you to complete only a couple of formalities to process your application.

What are the important issues to take into account when applying for an approved personal loan?

Therefore, pre-approved loans are only valid for a certain period of time. The consumer must apply for the deal in the specified time frame.

Tell the bank all relevant charges such as transaction fees, prepaid and pre-closure costs, etc.

Do not forget to compare other pre-approved personal loan deals available

It is always worth doing some homework on the offer and the creditor before choosing a loan option. Offer only because you need a personal loan, and not so it has been given to you. These loans have their own share of benefits, but it is still advisable to pick the correct amount of the loan and make a comparative study.