Salaried professionals are accustomed to receiving a call which says
“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. XXXXXX. 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”.
Now a call like this will leave you ecstatic. It’s a mann mein laddoo foota kind of feeling – “Wow! I can get money to spend on whatever I want”. But that is not exactly what a pre-approved loan means. Firstly, offering a pre-approved loan is a type of strategy used by banks to get their existing salaried customers to apply for a personal loan. Through this article, we now look at what a pre-approved personal loan actually means, its features, benefits and where to get it from at the quickest.
What is a pre-approved personal loan?
Based on the numerous articles that we have written on personal loan, by now, you must know what a personal loan is. It is a type of unsecured credit which is availed by a borrower without collateral or mortgage. Digital lending platforms, such as Loan Singh, approve the loan based on the borrower’s income, credit score and repayment capability. The loan is repaid in monthly EMIs for a set tenure. Personal loan, via banks, involves lengthy paperwork, time delay in decision making and is done offline. Loan Singh, being a digital lending platform, carries out the process online, with minimal documents and the entire process completion, from application to disbursement, within 36 hours.
A pre-approved 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 a borrower fits the criteria of getting a personal loan; and to get it processed further, financial documentation would be required. The status remains ‘Pre-approved’ for a set duration (around 6 months). Upon scrutinizing 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 ‘Pre-approval’ can then either turn into an ‘Approval’ or ‘Rejection’ – depending upon the average daily balance, multiple loan delinquencies, etc.
With Loan Singh, however, your personal loan application is pre-approved only once you have successfully completed and submitted the form. Once this is done, Loan Singh will then evaluate your financials such as bank statement and PAN. Your credit report will show how prompt you have been with your past repayments, and then provide you with a final decision of Approval or Rejection within a few hours. The disbursement then happens in a few more hours.
Always remember, a pre-approved 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 pre-approved phase, the bank will then backtrack on the pre-approved status.
Features of a pre-approved personal loan at banks
- Valid for limited duration. If you do not avail a loan within this, then you will have to apply for a loan as a fresh borrower
- The processing time is long
- 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.
How to get a quick pre-approved personal loan?
The best way to get a pre-approved personal loan is by applying for the loan digitally, at a digital lending platform such as Loan Singh. The process is mentioned below
Get Started page – Select ‘PERSONAL LOAN’ from the dropdown, and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID and corporate email ID
Social Authorization – Connect your Facebook, Google+ and LinkedIn profiles – for discounted rates
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, & as a KYC document.
Address Page – Choose your type of residence; 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 either from your computer, GMail account or net-banking account directly. Make sure the file is in PDF format.
Auto Debit Page – Provide permissions to your bank name, account number and IFSC code so that Loan Singh can auto debit the loan EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI repayments.
Loan Singh’s pre-approved personal loan eligibility
The following is the eligibility criteria for a pre-approved personal loan at Loan Singh
Being Salaried – Be a working professional with a minimum monthly salary of Rs.15,000
Financials – The latest 6 months bank statement in PDF, along with PAN Details.
Credit History– A good credit history, laced with a good credit utilization ratio and a balanced credit mix. In case of no credit history, you must at least be salaried for the last 3 months.
Old Enough – Be at least 21 years of age and of Indian nationality.
Why Go With Loan Singh?
There any many reasons why Loan Singh is the best option to get a quick pre-approved personal loan. Some of these are
Hassle-free – A hassle-free process includes no hefty paperwork or time delay. Apply for a pre-approved personal loan from the confines of your home, and get your loan application moved from ‘pre-approved’ to ‘approved’ in a matter of clicks.
Online Security – SSL (Secure Socket Layer) certification ensures all your personal and financial information remains private and protected. No need to worry about physical storage of approved documents or attested photocopies – required by banks.
Prepayment penalty – At Loan Singh, you can clear a personal loan ahead of tenure and pay no prepayment penalty, unlike banks.