All you need to know about Pre-Approved Personal Loan in India

In this fast-moving life, everyone requires financial assistance once in a while. Taking a personal loan is one of the best ways to sort your financial woes. You can apply for a small pre-approved personal loan and then repay it in small and affordable monthly installments. A personal loan does not require you to submit collateral against the loan. Therefore, it is a great way to take a big leap in your financial milestones and finance your immediate needs.

A personal loan has many other added advantages too like a flexible mode of repayment and an affordable rate of interest. In this article, we will be discussing at length a pre-approved loan.

What is a pre-approved personal loan?

A pre-approved loan is offered by financial institutions to its long-term customers who have shown good financial viability and have been regular users of their products. The biggest factor in this is your repayment of dues. If a customer has repaid all the dues on time, then as a token of appreciation, financial institutions like Fullerton India offer their customers a pre-approved loan at a low rate of interest.

In some of the cases, however, long credit history is also not required. If you have made substantial transactions of high amounts in the recent past, then you might get an offer for a pre-approved loan. However, these offers are valid only for a limited period of time.

There are some added advantages to a pre-approved loan as it required no or only a minimal amount of documentation. The processing time for the loan is also is very small as it is already pre-approved. You need to check with your lender if you are eligible for a pre-approved loan or not.

Key features of pre-approved loans

Pre-approved loans come with a lot of benefits and advantages. As it is a token of appreciation from your lender, it carries added rewards to make you feel special.

•    Application procedure is simple

•    Processing time is too low

•    Minimal or no documentation

•    Lower interest rates

Added benefits of personal loans

•    Complete flexibility to use the amount as you like

•    Flexible in options for repayment

•    No collateral required

•    Complete online procedure

•    Foreclosure facility available with most lenders

How to Avail a Pre-Approved Loan?

First of all, you need to be an existing and active customer for a predefined period of time. The second condition is that you should have paid all the dues on time and have made substantial transactions in the recent past.

If you think you fulfill the criteria mentioned above, then you should receive an offer from your lender soon. You can also check with your lender regarding your eligibility and the offers available for you at present.

If you have any on-going loan, then you should make sure that all the EMIs are paid on time for the same. Your credit score and credit history are very important for you to be eligible for a pre-approved loan.

Conclusion

Hence,  a pre-approved loan is a great product offered to the loyal customers of a financial institution. It has great benefits and added rewards. However, you should always check if you need it right now. Just because you are eligible for a pre-approved loan does not mean that you should always take it. If it does not come with limited validity, you can always wait for the right time to avail it.

A pre-approved can prove to be quite useful if used judiciously. Due to its added advantages and the small processing time it is preferable by the customers. Hence, check your eligibility for a pre-approved loan and avail it for enjoying all the added benefits.