Why Should You Accept a Pre-approved Personal Loan Offer?
A personal loan is a popular choice for many borrowers due to its versatile usability. Additionally, if you are getting a pre-approved personal loan offer, you can accept it due to the benefits. Keep reading to know the reasons for which you must accept a pre-approved loan offer.
Reasons for Accepting a Pre-approved Personal Loan Offer
Below are some benefits of a pre-approved personal loan offer that you should consider:
- Instant Disbursal Of Credit
Since it is a pre-approved offer, the financial institution must have already conducted a thorough background check. This saves a lot of time, and you can get instant approval and disbursal of credit within 24 hours of application.
- Minimal Documentation Required
As you already have an account in that financial institution or have previously taken a loan from there itself, they will have all your details. So, you need to submit only one or two additional documents while applying for a pre-approved loan.
- Assured Loan Approval
If you fulfil all the eligibility criteria and furnish the essential documents, then the lender will assuredly approve your credit application. Thus, you only need to fulfil the eligibility criteria to get approval.
- Affordable Interest Rate
Your lenders can offer you a lower interest rate on your pre-approved loan if you have a good credit history. Thus you can save immensely on your monthly outgo and have considerable time to repay your loan.
- Special Benefits
Pre-approved offers have several benefits, including EMI holiday benefits, processing fee waivers, etc. In addition, these benefits can help you manage your finances if you opt for a pre-approved personal loan when in need of funds.
- Zero Collateral Required
You will not have to collateralise your property or jewellery for this type of credit. Hence, you do not have to arrange property documents, nor will you have to fear losing your collateral in case you are unable to repay your loan.
- Flexibility of Choosing Tenure
You will have the flexibility of choosing a repayment tenure as per your convenience. This tenure can range between 12 and 60 months. However, you must keep in mind that if you select a shorter tenure, you will have to pay a higher monthly instalment and vice versa.
- Sumptuous Loan Amount
You can opt for credit within the pre-approved limit to meet urgent need for funds. However, this amount depends on the creditworthiness of a borrower and hence considerably varies with individuals.
Before accepting a pre-approved personal loan offer, you must check if you fulfil the eligibility criteria.
Eligibility Criteria for Pre-approved Personal Loan
The eligibility criteria for a pre-approved personal loan offer are as follows:
- Pre-existing bank account: You will need to have an existing account in the bank.
- Good credit score: You must have a credit score above 750.
Once you tick all the boxes of eligibility criteria, you can proceed with the application for a pre-approved personal loan.
Steps to Apply for a Pre-Approved Personal Loan
When you are eligible for a pre-approved loan offer, the officials will notify you the same via SMS or mail. After that, you can follow the steps below to apply for a pre-approved personal loan:
Step 1: Visit the official website of the financial institution.
Step 2: Navigate to the page of personal loans.
Step 3: Fill in the application form with essential and accurate information.
Step 4: Select the loan amount within the pre-approved amount and a tenure as per your convenience.
Step 5: Verify the details that you have entered.
Step 6: Upload the essential documents.
Step 7: Click on ‘Submit’ button.
However, if you do not receive any SMS, you can check the website or with the officials if you qualify for a pre-approved loan offer. Additionally, you must keep the essential documents ready to avoid any last-minute rush.
Documents Required for Pre-approved Personal Loan Offer
Below are the documents that you will need to submit to apply for a pre-approved personal loan:
- Identity proof documents such as Voter’s ID Card, PAN card, Aadhaar card, and driving license.
- Address proof documents such as rental agreement, utility bills, Aadhaar card, and passport.
Apart from these documents, the lender might ask for income proof and other documents as per their requirement. Remember, any error in the documents can lead to rejection of your loan application.
Additionally, you can use a few tips to ensure a hassle-free process and get the maximum benefit from your loan.
Tips to Benefit from Pre-Approved Personal Loan
Below are some tips that can aid you in making the most out of your pre-approved personal loan:
- Go Through the Terms and Conditions
You must carefully read all the terms and conditions associated with the pre-approved offer. This will aid you in identifying any additional or hidden charges associated with it.
- Conduct Extensive Research on the Lenders
You must compare the interest rates at which different financial institutions offer personal loans. This way, you can select the lender offering the most affordable rate and reduce your EMIs significantly.
- Try to Maintain a Good Credit Score
A good credit score is an essential criterion to stand eligible for a pre-approved personal loan. However, if you have a low score, you can take steps to improve it and get approval for credit.
- Strictly Adhere to the Loan Amount That You Need
There can be times when you think of opting for a credit amount higher than what you need. However, doing so will result in increased EMIs. Also, you might end up spending this extra amount on unnecessary things.
- Select a Suitable Credit Repayment Tenure
A shorter tenure will result in a higher EMI and vice versa. Hence, you must select a suitable tenure after calculating the monthly instalments. This will aid you in avoiding budget constraints and, at the same time, repaying your loan at the earliest.
You can get a pre-approved personal loan offer only for a limited time period. Hence, if you are in urgent need of funds and get this offer, then you can apply immediately for quick disbursal of the credit amount.
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