Steps to sanction pre-approved personal loans

The pre-approved personal loan is a loan that is already sanctioned to the borrower for personal expenditure. The borrower has to fill the application form and can avail loans up to Rs.25 lakh in the bank account with any clearance process required by the bank. The pre-approved loans are quick, easy, and instant to avail. The borrower has to check whether the pre-approved loan is being sanctioned to the borrower in the net banking option. There is no paperwork required to approve loans, as the lender already sanctions the loan. Also, the interest rates being charged are lower to make the proposal attractive to the borrower. The basic criteria based on which the borrower gets the loan approved are the good credit score, sufficient bank balance maintained by the borrower, good credit history of repayment of the borrower. The loans can be approved for a period of maximum tenure of 5 years. The loans are being charged an interest rate starting from 9% onwards, which can go up to 24% per annum. The loan, after clicked for application, is easily approved within few hours by the bank, and the amount is being disbursed in the account of the customer.

Different banks have different terms & conditions, and the interest rates charged also differ from lender to lender. The bank approves the pre-approved loans of the account holders who already have an account with the bank. Thus in the case of pre-approved loans, the customer is not given a choice to avail loans by their choice from any lender. The KYC documents submitted by the borrower are sufficient for the approval of the loans. Sometimes still the bank may ask for documents like income proof, address proof, and identity proof for the disbursement of loans. The borrower’s credit score is already verified based on which only the loans are approved of the borrower; thus, after becoming eligible for the pre-approved personal loans, the chances of the loans getting rejected is almost nil. There is also tele- calling team of the bank or NBFC, which has records of the customers with good credit history for whom the pre-approved loans are being sanctioned. If the approval is given to avail the loans, then, in that case, the tele-caller may send a link for the approval after filling up the form loans are being sanctioned to the borrower, and the amount is approved and disbursed in the bank account.

Features & benefits of the personal loans:

• Competitive interest rates:

The interest rates being charged are lower for the customers as compared to the regular loans being applied as personal loans. There are special discount offers on interest rates for the loans availed as pre-approved loans.

• Minimal documentation process:

The KYC details are already available with the bank; thus, the bank usually requires no more documentation.

• The flexibility of usage:

The usage flexibility is there as the customer can spend money anywhere according to their choice, and there are no restrictions from the bank regarding the usage of funds.

• Repayment of the loans:

The repayment of the loans should be made timely before the due date. Payment of installment beyond the due date may attract a penalty to the borrower. Also, the tenure is a minimum of 12 months and a maximum of 60 months from the date at which the loan is being taken.

Eligibility criteria for the pre-approved loans:

• If the borrower has a good credit history and the timely payment is done for the loans or credit card availed before then, the pre-approved loans are easily being approved by the lender.
• If the minimum bank balance maintained by the customer is very good, then, in that case, the pre-approved loans can be sanctioned for approval of loans.
• In the case of a corporate salary account with a particular bank, if a regular salary is being credited in the customer’s bank account, then, in that case, the bank may approve pre-approved loans to the customers.
• The bank may also consider pre-approved loans to new customers with good credit history, good monthly salaries, and the ones having a sufficient amount of funds.

Conclusion:

Thus the pre-approved loans are recommended to the customers as the approval process is quick, fast, and efficient for the customers. Also, the interest rates charged are lower to the customers. And the pre-approved loans are given to only those customers who have a good credit score and clear payment history, and no defaults of loans or credit card bills.