One fine morning, while taking a tea sip at home, you saw a text message from a bank saying a personal loan worth XXX is ready for disbursal. You may wonder, hey, I didn’t apply for a personal loan. Then how did this message come to my mobile? Don’t fret, this is a pre-approved personal loan offer. It will get disbursed only after you accept it. Let’s check out everything about it in this blog.
Pre-approved Personal Loan Meaning
It is a type of loan that lenders offer after checking someone’s credit history, income and savings details. Here customers don’t need to apply for a personal loan. It’s already approved by the lender based on the criteria mentioned above.
Check Out the Criteria for a Pre-approved Personal Loan in Detail
The criteria lenders usually evaluate with a pre-approved personal loan is credit score and income.
Credit Score – The Most Critical Factor for a Pre-approved Personal Loan
It’s a massive factor that helps lenders decide your eligibility for a pre-approved personal loan. Ideally, banks and NBFCs would want your credit score to be over 750. Along with a credit score, your repayment history should be spotless with no record of late payments. At the same time, they would want that you are not servicing too many debts. Too many debts will leave you with virtually no scope to entertain a new debt.
Income Details Give Lenders More Idea About Your Repayment Potential
Earning a high income is always bliss! You get more room to spend and save. Something lenders keep an eye on while selecting customers for a pre-approved personal loan.
Benefits of a Pre-approved Personal Loan
A pre-approved personal loan comes with a host of benefits you can check below.
No Need to Apply Manually
As the loan is pre-approved, you don’t need to apply yourself. It’s like a gift in appreciation of your debt management skills and high income. All you need to do is accept the offer after checking its details thoroughly.
Quick Disbursal – A Feature That Makes a Pre-approved Personal Loan the BEST
The best part is that you can get a pre-approved personal loan disbursed in your account in a few seconds to minutes. For instance, the pre approved personal loan HDFC in 10 seconds has created a rage in the market.
Competitive Interest Rates – A Major Benefit of Pre-approved Personal Loan
Since this credit is a reward for your superb credit history and income, the chances of grabbing competitive personal loan interest rates heighten considerably. You can get this loan at interest rates starting from 10.99% per annum.
Minimal to No Paperwork
Since the lender has already assessed your income details, you may not be required to submit documents such as salary slips to obtain a pre-approved personal loan. As pre-approved loans come mostly from the lender with whom you have a business relationship, it will have your documents already. Such a loan offer relieves you from the hassles of arranging documents.
Disbursal of Pre-approved Personal Loan Against a Credit Card
Yes, it remains the case. So, if you have a credit card, the lender can offer you a loan against the same. The loan against credit cards comes in two forms – Loan Against the Credit Limit and Loan Over and Above the Credit Limit.
Loan Against the Credit Limit
This loan, as specified in the name, is disbursed against the credit limit of the card. Here the lender blocks the approved loan amount against the credit limit. So, if your credit card limit is INR 1,30,000 and you are approved for a loan worth INR 1 lakh, the lender will block INR 1 lakh and leave you with INR 30,000 for credit card transactions. After you repay the loan successfully, the blocked credit limit will be restored.
Loan Over and Above the Credit Limit
This type of loan is disbursed over and above the credit limit. Here both loan and credit card transactions will go through separately. Let’s understand it with an example. You have a credit limit of INR 1,30,000 and have a pre-approved personal loan of INR 5 lakh. In that case, your loan amount cannot be blocked as it is over and above the credit limit. Both will operate separately. To keep overall debts lower, be selective with your credit card purchases. Say NO to impulsive buying behaviour to avoid credit card interest charges. This way, you will enjoy a smooth personal loan EMI and credit card payment experience.
Pre-approved Personal Loan Offers of Different Lenders
| Lenders | Interest Rate (In Per Annum) | Processing Fee | Max. Loan Amount (In INR) | Disbursal Time | Loan Tenure |
| State Bank of India (SBI) | 11.35-14.50% | 1.50% of the Loan Amount. Minimum Fee – INR 1,000 Maximum Fee – INR 15,000 The GST will be charged over the fee amount. | 15 Lakh | Instant Disbursement Through Internet Banking | Upto 5 Years |
| HDFC Bank | 10.75-24% | Upto INR 4,999 + GST | Based on your income and credit history | 10 Seconds | 12-60 Months |
| ICICI Bank | 10.80-16.15% | Upto 2% of the loan amount + GST | Upto 50 Lakh | 3 Seconds | 12-72 Months |
| Bajaj Finserv | 13-35% | Upto 3.93% of the loan amount | Upto 12,76,500 | 30 Minutes | 6-63 Months |
| Kotak Mahindra Bank | Starting from 10.99% | Upto 3% of the loan amount + GST | Upto 40 Lakh | Within a Minute | Upto 6 Years |
Note – The disbursal time mentioned is sourced from the lenders’ websites. The actual time may vary.
Wrapping Up
As you see how meticulously lenders price pre-approved personal loans to woo customers. However, you will need to check whether you require a loan in the first place. If so, start comparing personal loan interest rates, processing fees, EMI options, tenure, etc. Choose the offer that helps fulfil your need in exchange for a lower cost. For more insights on personal finance, economy, beauty, health and women empowerment, visit zarooribaathai.in.
