Pre-Approved Personal Loan- How to get it?

Need funds for a financial emergency as quickly as possible? A Pre-Approved Personal Loan can help. Read this blog to know what it is and how to apply for it.

With no limitation on how the funds can be used, a Personal Loan is an excellent way to manage various financial needs and expenses. It is also an apt choice for medical emergencies, unexpected events, or sudden loss of income. But in such cases, borrowers generally need the funds as quickly as possible. A Pre-Approved Personal Loan is designed for such circumstances.

Let’s find out what this Pre-Approved Loan is, how it works, and more:

A Personal Loan is an unsecured loan that does not require any collateral or security against the loan amount. The application process for a Personal Loan involves submitting various documents for identity and income verification. Based on this verification, the bank approves the loan amount.

But when you have a long-standing relationship with the bank, they can offer you a Pre-Approved Personal Loan facility. With this, the lender will approve a credit limit for you based on your past record even before you apply for the loan. In case of a financial emergency, you’re allowed to borrow funds up to the approved limit.

The Pre-Approved Personal Loan is generally only available for customers with a good track record with the bank. For instance, you might have your Salary Account with the bank and earn a stable income for several years or have taken a loan in the past and repaid it on time.

Banks generally send email and app notifications to customers who’re eligible for a Pre-Approved Personal Loan. Alternatively, customers can log in to their NetBanking account and check if they are eligible for this facility.

Read More: What is a Pre-Approved Personal Loan? Eligibility, Advantages, and More

The interest rate for Pre-Approved Personal Loans is generally similar to the regular Personal Loan interest rates. So, borrowers get highly competitive interest rates along with faster disbursal of the loan amount with this facility.

Moreover, in some cases, existing customers are offered such approved Personal Loans at a lower interest rate. For instance, AU Small Finance Bank offers Pre-Approved Personal Loans with preferential interest rates and zero documentation to their existing customers.

So, how to get a Pre-Approved Loan? If you’re eligible for a Pre-Approved Personal Loan, you can apply for the same through the online channel. Here’s how:

• Log in to the NetBanking portal or Mobile App of the bank and look for ‘Pre-Approved Personal Loan’ offers. Check the approved loan amount and apply online.

Here are some of the most important things you should check before applying for a Pre-Approved Personal Loan:

• Check the applicable interest rate and compare it with the interest rate of other top lenders to ensure you’re getting a good deal.
• Use a Personal Loan EMI Calculator to know the amount you’ll have to pay in monthly instalments.
• Know the processing fee, pre-payment, and pre-closure charges of the loan.
• Read all the documents you receive from the lender to avoid any discrepancies later.

A Pre-Approved Personal Loan is a smart way to get faster access to the loan amount in case of a financial emergency.

AU Small Finance Bank offers Pre-Approved Personal Loans to eligible existing customers with no documentation to further simplify the application process. Combined with preferential rates and flexible repayment tenure, the largest Small Finance Bank in the country provides the utmost convenience and peace of mind.