What are the Simple Instructions to Get Pre-Approved Personal Loan?
When it comes to arranging some urgent and large amounts of funds, the personal loan is among the most sought-after facilities.
What’s more, the personal loan also does not need you to pledge any collateral or security while applying. It is given on the basis of your creditworthiness and lender’s policies.
Borrowers with a robust credit score can negotiate with the lender for a reduced rate and pay lower EMIs. But while applying for the personal loan, you need to consider many aspects. It is the lender’s policies, eligibility norms and much more.
Many prospective borrowers don’t apply for the personal loan. It is as they don’t want to go through formalities concerning the mentioned aspects. It is where the pre-approved personal loan comes into the picture.
If you want to know more about the pre-approved personal loan, then this post is a must-read for you!
What is a pre-approved personal loan?
As the name suggests, the pre approved personal loan is an already sanctioned loan for a borrower. To get the loan amount disbursed, all that an applicant needs to do is apply for it. Once you apply for the pre-approved personal loan, then the loan gets processed faster. In turn, you get the approved loan amount disbursed into your account.
What are the key benefits of the pre approved personal loan?
The pre approved personal loan comes with many benefits, such as:
- The bank may not ask you for any documentation if you are its existing customer.
- Online and paperless procedure.
- Instant fund disbursal in your bank account.
- No restrictions on the way you use the loan amount.
- You may enjoy the lower processing charge.
- Chances of availing reduced rate of interest as it is the pre approved personal loan offer.
What to do if you want to get the pre approved personal loan?
Marching ahead to the pre approved personal loan is easier if you are able to meet some conditions such as:
- You need to have a robust credit score. The ideal cibil score for personal loan that is considered by banks and other lenders are 750 and more. Higher the credit score, brighter are your chances of getting the pre approved personal loan. You can do that by repaying your existing loan EMIs and credit card outstanding on time.
- You may need to ensure that you have not availed the personal loan in the last 6 months.
- The next thing is to ensure that your current outlays (debts) are not more than 40-50% of your existing take-home income.
- You must avoid applying for many loan applications at a time. Doing that may impact your cibil score negatively.
- Ensure that you use your credit cards prudently. The obvious thing here will be repaying the credit card outstanding on time, every time.
- Try to maintain a fair mix of unsecured (personal loans etc) and secured loans (home loans etc). It boosts your credit score big time – one of the biggest conditions that lenders check while offering the pre approved loan offer.
- If you have many ongoing loans and credit card outstanding, then you should consolidate the debt as far as possible. When you do that, then your debt to income ratio will also increase. This way, a lender may consider you as the best case for offering the pre-approved personal loan.
You are now well aware of the pre-approved personal loan and ways you can get it. If you are ready, check it right away on the personal loan page of your existing lender.