Important things to know about pre-approved personal loans

It has become increasingly common for financial consumers to get special offers from their lenders and other leading credit issuers. Often, these will be offers related to your pre-approved personal loan eligibility or another type of unsecured credit. But before you accept any such offers, especially loans, you should be aware of the pre-approved loan meaning. A pre-approved loan is one that the lender extends to you based on your current financial standing. It is a product that is typically offered by banks or NBFCs to existing customers with a flawless credit history and excellent CIBIL score.

You may get these pre-approved loan offers regularly, and you can use them to cover short-term financial needs without having to put up any collateral or security. When used wisely, such offers can be quite helpful and cost-effective too. However, to ensure that you get the best deal and are fully aware of the details of such offers, here’s all you need to know about the pre-approved personal loan.

Attributes of pre-approved personal loans

Considering that pre-approved offers are granted based on a lender’s prior assessments of your profile, these offers differ from regular loan offers. This is why it is important that you understand the pre-approved personal loan meaning to ensure that you don’t make any costly mistakes. For clarity on such offers, here are a few attributes to know.

• • These offers are attractive and are usually available only for a limited period of time.
• • The lender assesses your pre-approved personal loan eligibility prior to issuing an offer
• • The sanction, interest rate and any other loan terms are personalised based on your financial profile
• • Lenders usually extend a pre-approved personal loan to existing customers only
• • Pre-approved personal loans are easier to avail than regular personal loans as you generally do not have to apply
• • Pre-approved personal loans are collateral free offerings
• • Pre-approved loan offers will change over time

A crucial point to note about such offers is that you should only borrow as required. These offers can be alluring and while they may only be available for a limited time, borrow wisely. You are responsible for timely repayment and taking on debt you can’t handle will negatively impact your CIBIL score.

Eligibility for pre-approved personal loans

Pre-approved personal loan eligibility terms will vary from lender to lender. However, the most important criterion to note is that most lenders will require you to be an existing customer. However, even as an existing customer, you may still need to meet some basic criteria before you get such offers. To know what’s expected, take a look at these pointers.

• • A CIBIL score of 750 or higher
• • A steady income
• • A relationship with the lender
• • A strong repayment track record and credit profile

Do note that since these loans are offered to existing customers, it is a paperless process. This means that you can get a pre-approved loan without income proof as lenders will already have these details on file. However, in some cases, you may be requested to furnish basic paperwork. For instance, when availing a Bajaj Finserv Pre-approved Personal Loan, you may be required to submit a cancelled cheque, KYC documents, and bank account details.

Benefits of pre-approved personal loans

There are many benefits of a pre-approved loan, making them the ideal short-term solution. For one, since the loan is pre-approved, you do not have to apply or go through the standard underwriting processes. This expedites the loan acquisition process significantly, allowing some lenders to disburse funds quickly. For instance, when you avail a Bajaj Finserv Pre-approved Personal Loan, you can get the approved sanction disbursed to your bank account in 4 hours*. In addition, select customers can of a pre-approved personal loan with a 100% online application process without having to submit any documents.These  customers can get the money in their account as early as 30 minutes*.

Besides near-instant disbursal, another key benefit is that you may get specialised terms. Be it the sanction, tenor options, or even the interest rate; the terms are based on your eligibility. As such, having a stellar financial and credit profile is advantageous as it helps you get the best deal. Lastly, the entire process to avail of a pre-approved personal loan offer can be completed online. For instance, with lenders like Bajaj Finserv, you can check the offer, authorise disbursal, make payments and track the loan digitally. You never have to visit the lender's physical branch and you can complete the process online, from anywhere.

You may avail a pre-approved personal loan for a variety of purposes, and you should always check the terms offered to you. For a hassle-free and cost-effective experience, opt for the Bajaj Finserv Pre-approved Personal Loan. Get easy access to up to Rs. 10 lakh and opt for a tenor between 24 and 60 months. Bajaj Finserv offers pre-approved personal loans to both Salaried as well as self-employed existing customers. The lender also offers pre-approved loans to select new customers. To get started right away, check the pre-approved personal offer online by filling out a simple form.

*T&C apply

Moneycontrol journalists were not involved in the creation of this article.