Pre-Approved Personal Loan – All you need to know

A personal loan is a simple short-term loan which could be used for any legitimate purpose. You won't be required to pledge any form of collateral or security. It can be used to meet immediate personal expenses like a medical emergency, a sudden loss of job, to fund your wedding or higher studies, and finally, it can also be used as a capital for business or to consolidate debt.

A personal loan has several advantages including relatively simple documentation, no need for collateral, and no restrictions on how you use the money. However, it comes at a high interest rate, so it is advisable to have a good credit score before applying for it.

What is a pre-approved personal loan?

A pre-approved personal loan is usually offered by banks to customers who have a clean track record of repaying their dues. It is often offered at lower interest rates.

Some lenders pre-approve a loan to its customers even if they have no credit history based on parameters like income and savings history. It is often a limited period offer.

There are several advantages to a pre-approved personal loan. They require less documentation, and it is processed within a few days. You could check with your lender if you are pre-approved for a loan offer, or you could log into your net banking account and see if you are pre-approved for a loan. Do keep in mind the final approval depends on your credit history and the lending policies of your lender.

Key features of pre-approved loans

•    Simple application procedure
•    Fast Processing
•    Almost zero paperwork
•    Preferential interest rates

Pros of personal loans

•    Complete flexibility of end use
•    Flexible repayment options, with tenures ranging from 12 months to 60 months
•    No collateral required
•    Loans available for various needs
•    Hassle-free online loan application
•    Easy and simple documentation, quick processing and speedy disbursal.
•    Foreclosure facility available with most lenders
•    Check your eligibility online on the lenders website
Cons of personal loans
•    High interest rates due to their unsecured nature, and especially if you have a dented credit history
•    If you have a bad credit rating, then your application might get rejected, further damaging your score
•    If, on the other hand, your application is approved, then it will be done so at high interest rates which will considerably increase your monthly outgo

Can I avail a personal loan without documents?

Several lenders like HDFC bank, Axis bank and ICICI bank (to name a few) provide various personal loan offers, which doesn't require any documentation. Some of the features are as follows:
•    Instant Loan disbursal
•    Paperless and online
•    Nil documentation
•    Special offers like a reduced interest rate

There is a catch, however. This offer is available for pre-approved customers only. If you are an existing customer, then you can check your eligibility zero document personal loan by logging into your net banking platform.

You can also avail Instant loans if you are the holder of an active HDFC Bank credit card / ICICI Bank credit card / Axis Bank credit card. These loans are generally called instant loans, which is basically a pre-approved loan within the credit limit on your credit card. Your credit limit will be blocked and released subsequently as you pay back your EMIs.

Some of the features of Instant loans are as follows:

•    Nil Documentation since you are an existing customer. No hassles of documentation if you are in urgent need of funds.
•    Flexible Repayment tenure
•    Instant Credit – the loan amount is credited directly to your savings account
•    Attractive Rate of Interest

Again, this offer is available for pre-approved customers only. You can check your eligibility for an instant loan by logging into your net banking platform.

Life is unpredictable and throws us countless situations where you might be in an urgent requirement for funds. If you don't have an emergency fund, don't panic. These options can help you overcome cash crisis if executed well.

Personal loan – Apply Online

If you require a personal loan, you can check your eligibility and apply for one by signing up with CreditMantri. It is quick, simple and above all, free.

CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence, the chance of your loan application getting approved is higher.

Click here to sign up and apply for loans and credit cards, the CreditMantri way!