All you Need to Know About Pre-Approved Personal Loan

A personal loan is a financial assistance that can be used for multiple purposes – Higher education, Wedding, Travel, Medical emergencies etc. This is an unsecured type of finance that does not require any collateral from the borrower. Also, you can avail a quick Personal Loan with minimal documentation through instant personal loan apps. We shall understand about Pre-approved Personal Loan in more detail further –

What is a Pre-approved Personal Loan?

The concept of a ‘Pre-approved Personal Loan’ is very simple. Lenders have your credit history and Track record of your repayment trends pre-checked. And if they find it clean & regular, they have an offer ready for you based on your credibility. This means the offer is ‘Pre-approved’ for you & it only needs to be accepted or availed, if you should find yourself in need of funds. Unlike the conventional way of first applying, & then waiting for approval from the lender, this process is much simpler. As all your credit history is pre-checked and verification is already done, it becomes really easy to simply avail a Pre-approved Personal Loan offer.

This may often be a limited period offer, hence those who have a pre-approved offer from their banks or lenders, have a limited time to avail it. A pre-approved offer is always beneficial as it needs minimal documentation and gets processed quickly as all the background check of the borrower is already done. You can get in touch with your bank or lender and check if you have any pre-approved Personal Loan offers for you. Although, one must remember, even a pre-approved offer is subject to the terms & conditions of the lender and can be revoked as per their policies.

How can I know if I have a pre-approved Personal Loan offer?

If you are connected with any bank, you can simply log in to their website/app with your credentials to check your pre-approved offers. If that does not help you, you may get in touch with their customer service for the same. There are several NBFC’s that have their own instant personal loan apps in place that cater to the needs of the customers. PaySense, Dhani, Early Salary, Bajaj Personal Loan app, Kissht etc are some of the popular instant personal loan apps in the market. You can simply log in and check if you have any offers pre-approved for you.

Read Also – Complete Guide to Apply for a Personal Loan Online

What are the benefits of applying for a Personal Loan through loan apps?

1) Instant disbursal –

Instant personal loan apps disburse your loan amount quickly after approval. Hence, in times of emergencies, you can easily get a Personal Loan to meet your immediate expenses.

2) Easy Tracking –

You can view your transactions, statements, know your outstanding dues and much more through the apps. Lenders like the Bajaj Personal Loan app offers easy online management of loan-related necessities. Checking your loan application status, paying EMIs, monitoring your transactions etc was never so easy before! An app is much more convenient and hassle-free when it comes to accessing information.

3) Simple Procedure –

Instant personal loan apps have a much simpler process of applying for a loan as compared to traditional banks. You can avail funds only in a few clicks. The loan apps eliminate the trouble that you may go through in banks – long queues, endless wait, stringent eligibility check, heaps of documents etc. With loan apps, there is no hassle at all. The complete procedure is digitized which makes Personal Loan available only in a few simple steps.

4) Collaterals not required –

One of the significant benefits of Instant Personal Loan apps is that they do not ask for collaterals against the amount they lend. That is also one of the reasons why their interest rates are high. However, in times of emergency, not having to pledge collateral makes it easier for applicants to avail funds.

5) Restriction free end-use – 

Personal Loan is free from end-use restriction i.e you can use this loan amount for any purpose you want like Higher Education, Travel, Wedding, Home renovation, Health emergency etc. The ability to use this loan for numerous purposes make it convenient for the borrower to utilize the funds however she/he deems them fit.

6) 24 x 7 Service –

Banks are limited to their timings; public holidays etc. and hence may not be available all the time. An instant personal loan app will always be on your phone for 24 x 7, 365 days. This makes it easy for you to access your loan account information anytime, anywhere you want.