Pre Approved Personal Loan: Meaning, Eligibility And Interest Rates

A person may feel that getting a personal loan is a complex process. In this case, a pre-approved loan is an excellent choice for individuals who prefer to avoid such inconveniences.

Pre-approved loans help speed up receiving the loan disbursal amount and have reasonable interest rates. Additionally, if you have a solid credit history, your lender can offer lower interest rates than a standard personal loan. Consequently, lowering the EMIs without sacrificing your financial requirements is effective.

Meaning of a pre-approved personal loan:

Customers with exceptional credit scores and a track record of on-time credit payments can apply for a pre approved loan. Financial organizations offer this loan to their existing customers. However, lenders mostly employ pre-approved loans as a marketing strategy to increase the sales of loan products. Thanks to these pre-approved loans, customers can obtain these best loan offers with little to no documentation. These loans also require little processing time, typically don't require collateral, and have adjustable repayment terms. 

Eligibility to get pre-approved personal loans:

Even though this loan has already been pre-approved, you might still need to meet the following requirements to be eligible. The criteria for eligibility include:

1. You must be an existing customer of the lender.
2. You need to have a spotless credit record.
3. Also, a solid history of timely loan and debt repayment.

Interest rates of pre-approved personal loans:

The interest starts at 13 percent and varies from lender to lender. Usually, the interest depends on the reputation of your employer when you are a salaried person. The interest rate is higher for a low-salary loan.

Read Also: Know Features and Benefits of Pre Approved Loans

Summary:

The most significant choice for last-minute financing needs is pre-approved loans. It is simple, effective, and only needs sound money management. Additionally, the lender extends additional promotions like processing fee waivers, EMI holidays, and low-interest rates. So it's a fantastic and quick way to take care of your financial needs. Before accepting any pre-approved loan offer, be cautious of interest rates. Check the additional costs and fees before agreeing to the terms.