You are eligible for a pre-approved loan if you have a good credit score. Personal loan pre-approval is typically done after the lender has reviewed your credit history.
The lender typically uses information about potential borrowers' income, employment status and credit score to determine if they qualify for pre-approval. So, you may be eligible for a pre-approved loan if you have a good credit history, a high credit score and a long-standing relationship with the bank.
If you’re not sure how to check for pre-approved loans, don’t worry. You can simply log into your account with the bank and see if you have any loan offers. In case, you can apply for a pre-approved loan online if you need some emergency funds.
Here are some of the key benefits of a pre-approved personal loan from your preferred lender.
Personal loan pre-approval is done based on strict eligibility criteria. Lenders look into your credit history to check your promptness with your previous loan repayments. They will also check your employment status and your annual income. You will only be eligible for a pre-approved loan if you meet all the criteria.
Since banks only offer this option to borrowers with excellent credit scores, the overall risk to the lender is fairly reduced. So, pre-approved personal loans often come with beneficial interest rates. It also helps that the borrower has already been vetted by the lender and has been found eligible for the loan.
Pre-approval also eliminates the need for the lender to obtain any asset as collateral from the borrower. This means if you are eligible for a pre-approved loan, you need not worry about offering your fixed deposits, gold, securities or any other assets as a security. You can simply avail of the loan without any of this hassle.
To avail of a regular personal loan, you will have to apply, wait for it to be reviewed and then get the funds if approval is granted. However, personal loan pre-approval makes the process much easier. You only need to check if you qualify for a pre-approved personal loan and then apply for the facility on the website or the app of the lender.
It’s not just the application process that’s easy. Pre-approved loans are also quickly processed and disbursed because the lender does not have to go through the steps involved in checking the borrower’s eligibility and vetting their credit profiles. So, if you choose to avail of a personal loan that you’ve been pre-approved for, the funds will be disbursed almost instantly to your account.
Being pre-approved for a loan can be very beneficial if you have a sudden financial requirement. You can increase your chances of being eligible for a pre-approved loan by maintaining a good credit score. If you already have a good credit profile, you may even qualify for the instant pre-approved loan from Fi Money. Download the app and register to check your eligibility today, and get access to funds up to Rs. 5 lakhs at competitive interest rates.
Since the loan is already pre-approved, it does not need to be approved once more. As for the disbursal, the funds will be credited to your bank account almost instantly in case of personal loan pre-approval.
In case a soft credit inquiry is made to determine your eligibility for personal loan pre-approval, your credit score will not be affected. However, if you decide to avail of the offer and the lender needs to make a hard inquiry, your credit score may temporarily dip. Once you start paying your EMIs promptly, your score will rise back up again.
