A personal loan happens to be the first solution that comes to mind when you need funds urgently. Given the ease of applying and high chances of approval, most borrowers rely on this offer to meet unprecedented expenditures. So how would you react when lenders present you with a better option, namely a pre-approved loan?
In addition to serving as an instant personal loan for the salaried, a pre-approved loan accrues several benefits. To begin with, lenders approve this loan the instant they receive the application. Due to minimal documentation, the loan application takes minimal time to process, and you can look forward to receiving the amount within a few hours. Moreover, lenders do not place restrictions on how you utilize the funds, and you can set a repayment tenor and interest rate at your convenience.
With so many advantages of pre approved personal loans, it is natural to feel tempted to apply for them. However, not everyone can avail of this loan, and lenders insist on eligibility criteria before approving the application. So, the next step towards benefitting from a pre-approved loan entails making inquiries to determine if you are eligible. Also, figure out how to go about the process.
Are you eligible for a pre-approved loan?
Since lenders make the first move in offering a pre-approved loan to customers, you may find the eligibility criteria to be fewer than in the case of other loans. At the same time, the benchmarks are also stringent compared to other products, which is why not everyone qualifies for this instant cash solution. If you are keen to avail of this loan, you must prove your eligibility to the lender, and this entails –
- Having an impeccable credit history that is devoid of any defaults, fines, or penalties;
- Paying all your bills, debts, and monthly instalments on time;
- Being an existing customer of the lender or having business dealings with the lender in some capacity;
When selecting customers to offer this instant personal loan for the salaried class, lenders give first preference to their existing clients. This is because they find it easier to keep track of the credit history and record the transactions conducted by the customer. Current clients will also have completed the KYC formalities, which significantly reduces the processing time of the application.
But do not fret if you do not have an account with the lender offering pre-approved loans. Approach them and provide proof of substantial savings in your account along with income statements over the past few months. Once the lenders are convinced of your financial stability, they consider you for this offer. Hence, despite being a new customer, you can still accrue the various advantages of pre-approved personal loans.
Some unspoken rules that lenders consider while selecting probable customers for this instant loan offer pertain to –
- The age of the customer, wherein the preferred upper and lower ceilings are 21 years and 67 years, respectively;
- The annual income of the customer over the past few month0073;
- Source of income and lenders prefer customers that work in government offices or well-established and reputed private firms;
- A credit score of the customer, wherein the higher the score, the better are your chances of qualifying for this loan offer;
- Number of loans that you might have availed in the past and might be currently paying monthly instalments for;
Checking your eligibility
Thanks to the Internet, customers can now check by themselves whether or not they can qualify for a pre-approved loan. Follow the steps in order and soon you will have an answer to your query –
- Access the website of the lender, and open the section/page that deals with instant loans;
- Go through the list of documents that the lender might have specified, like proof of identity, income, age, address, and so on;
- Gather all the documents and check their validity;
- Fill in the amount you require as a loan in the calculator to learn the interest rate and the number of months it would take to repay the loan;
- Provide your credit score and check if it entails any privileges in form of lower interest rates and a flexible payment schedule;
Having established your eligibility, you can apply for a pre approved loan either online or by personally paying a visit to the lender’s premises. Make sure you have all the documents ready while filling out the application form. You can upload them in case of an online application or provide the lender with copies. Mention the amount you require and the period that would be most suitable for you, and apply. On receiving the application, lenders will review and revert within a few hours with the verdict.
The advantages of pre-approved personal loans notwithstanding, you must go through all the fine print associated with this loan. Also, compare its features with other offers to establish that this is indeed the best instant personal loan for salaried employees.
Read Also: What is the best loan to build my house?