During yesterday’s blog post, we tried answering some of your commonly asked queries regarding Loan Singh. Some of those queries were:
- How to apply for an online personal loan?
- What happens when there is an online personal loan default?
- What is the difference between credit card loan and personal loan?
- How do we receive the loan amount? What are the benefits of netbanking?
Another question that gets prospective borrowers intrigued is “What is a pre-approved personal loan?” Many confuse a preapproved personal loan as a guaranteed personal loan. They feel that nothing can go wrong, and the funds will definitely be availed. Traditional lending institutions such as banks try various mediums to communicate their offer of a preapproved personal loan to account holders.
A generic call would be made up of the following script:
“Hello Sir, how are you doing today? I am calling from XYZ bank, and would like to inform you that you are now eligible for a pre-approved personal loan of Rs. X Lakhs. Whenever you find the need to avail of it, kindly visit our branch along with financial documents such as PAN, latest bank statement, address and ID proof. Thank You”.
Receiving a call like this can leave you feeling ecstatic. It shows you that a credit lending institution finds your financial situation strong and trusts you beforehand that you are in a situation to repay the credit. If you look at it from the point of view of banks, it is perfect strategy to entice their account holders to apply for a personal loan.
Preapproved Personal Loan
A preapproved personal loan simply means that a borrower is found eligible for a personal loan. It neither means your loan application is ‘Approved’, nor does it mean your loan application is ‘Rejected’. It is just a base level affirmation, by the credit institution, that an account holder fits the criteria of being offered a personal loan.
The status remains ‘Pre-approved’ for a set duration (around 6 months). Upon scrutinizing the required loan amount, and the provided documents, your personal loan is approved against a decided loan EMI and tenure. Banks carry out an initial analysis of their customer’s financial standing based on his/her savings account details or credit card spends. These help determine if the customer is worthy to be offered a personal loan, or not. This ‘Preapproval’ can then either turn into an ‘Approval’ or a ‘Rejection’ – depending upon the credit applications, loan delinquencies, etc.
At Loan Singh, however, your personal loan application is preapproved only once you have successfully completed the application process. Once this is done, Loan Singh will then evaluate your documents such as bank statement, Aadhaar and PAN.
All these then influence a final decision on whether your personal loan application should be approved or rejected. The above decision happens within a matter of minutes. The disbursement then follows within 48 hours, if all is well. Always remember, a preapproved status to your loan application is not a guarantee of loan approval. This is the same for banks. Suppose your repayment history takes a beating during the preapproved phase, the bank will then backtrack on the preapproved status.
Facets of Preapproved Personal Loan at Banks
- The preapproved status is valid for limited duration. If you do not avail a loan within that stipulated duration, then you will have to apply for a loan as a fresh borrower
- The processing time is longer compared to Digital lending platforms such as Loan Singh
- Terms and conditions have to be satisfied. It does not guarantee a sanction
- Applicable for both secured and unsecured loans
- Institutions have an upper hand while negotiating loan terms
Preapproved Personal Loan Online
The Loan Singh digital lending platform is set-up in such a way that the borrower’s personal information, financial information and social authorization, are evaluated digitally; basis which his/her creditworthiness is calculated. Loan Singh then decides if the loan is to be approved, or not.
No bank statement photocopies, no attested documents, no reference forms, and no heaps of application forms are needed. With no time wasted in the documentation, this mode of personal loan disbursement is faster and quicker than traditional credit solutions.
No human intervention in the loan application process allows for better streamlining. With the number of documents down to just PAN Card, Aadhaar and Bank Statement PDF (that too fetched from your netbanking account), you save your precious time instead of going around accumulating multiple documents and attestations needed by traditional lending institutions, such as banks.
Using technology, Loan Singh is able to serve the underserved salaried individuals. Loan Singh’s mission is to improve on traditional banking pain points such as delay in loan approval, a lengthy time taken in disbursement, and lack of credit history. With ‘Digital India’ encouraging Indians to make use of various digital payment modes in India, the idea to avail an online personal loan has become a reality, as well.
Loan Singh does not meet the borrower face-to-face like banks do. Everything from loan application to amount disbursement is done online. To mitigate the prospect of risk, Loan Singh assesses your creditworthiness using your credit report. If you have a good credit history, you have a better chance of avoiding a loan rejection.
The borrower’s credit score/credit rating indicates how prompt you have been with your past credit obligations. Availing a personal loan via Loan Singh is advantageous because there is minimal paperwork involved. So, no time is wasted in cross verifying any paperwork.
The personal loan amount, along with interest rate, is calculated for the entire tenure, and in case you want to clear-off the loan before tenure completion, no prepayment penalty is levied by Loan Singh. The idea is to not strain you with credit but to make sure that your salary and savings permit you to avail credit. Your credit report acts as a gauge for Loan Singh. It shows how prompt you have been in your previous credit responsibilities and how trustworthy you are. Loan Singh is perfect because of…
At Loan Singh, everything from application to disbursement happens online. With only Aadhaar, PAN and Bank statement/netbanking credentials, you can apply for a personal loan and pay for your emergency requirements.
Having no collateral requirement gives a personal loan an advantage over the secured loan. Even if you do not own any assets, you can at least get funds from Loan Singh.
A personal loan can be availed for a number of purposes. The purposes of loan can be for the purchase of household appliances, electronic gadgets, debt consolidation, purchase of gold, holiday travel, instant emergency loan, home improvement, job relocation, medical expenses, home renovation, purchase of second-hand vehicles, marriage, etc.
Loan amount and tenure
The loan amount for a personal loan at Loan Singh can range from Rs.50,000- Rs.5,00,000. The repayment is done via EMIs, with interest rates on reducing balance method. The personal loan tenure can be from 3 to 36 months.
Equated Monthly Installments
You can find out about the EMI amount you will be required to pay each month by making use of Loan Singh’s personal loan EMI calculator. You can avoid the default in EMI payments by providing Loan Singh with permission to auto-debit the EMI amount before the EMI repayment due date. Your personal Loan Singh dashboard allows you to track past EMI payments, pending EMIs and tenure remaining.
The personal loan process at Loan Singh is hassle-free because there is no hefty paperwork or running from bank to bank or filling multiple forms. You can apply for a personal loan right from your home and get the loan approved in just a few clicks.
Keeps your information safe
With Loan Singh being SSL (Secure Socket Layer) certified; all your personal and financial information submitted remains private and protected. You also don’t have to worry about the physical storage of approved documents or attested photocopies like in traditional lending solutions.
At Loan Singh, you can clear a personal loan ahead of tenure and pay no prepayment penalty, unlike banks.
Online Personal Loan Application
If you find yourself fitting Loan Singh’s criteria, log on to www.loansingh.com and apply for an online personal loan. You will need to keep your Aadhaar, PAN and bank details handy. Here is how the process goes.
Get started page – Select ‘PERSONAL LOAN’ from the drop-down and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID, and corporate email ID
Profile page – Fill in your name, gender, Father’s name, number of dependents, and PAN details. We use your PAN Card Number to check your Credit Score.
Address page – Choose your type of residence, and mention your street address, city, state and pin code.
Job profile page – Mention your current designation, total work experience, company name, highest qualification, last institution attended, and monthly salary.
Financials page – Upload your latest 6 months bank statement (in PDF format) either from your computer, GMail account or directly link your net-banking account. Our net-banking partner is ISO 27001 (2013 standard) certified & provides services to established banks, as well.
Auto debit page – Provide permissions to your bank name, account number, and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI payments.
Loan Singh’s Online Presence
Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. Some destinations you can find us on are:
- Loan Singh Pinterest
- Loan Singh on Facebook
- Loan Singh on Twitter
- Loan Singh Google Review
- Loan Singh Medium Blog
- Loan Singh Reddit Blog
- Loan Singh Tumblr Blog
- Loan Singh Scoop It Blog
- Loan Singh Storify Blog
- Loan Singh Digg Blog
- Loan Singh Blogger
- Loan Singh Lymelight
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