Home > Personal Loan > Pre Qualified Personal Loans

Pre-qualified Personal Loans

Pre-qualified or pre-approved loans are the loans offered by banks to customers with a clean credit history, subject to a few conditions. Most of the times, the bank executive who gets in touch with you offering a pre-approved loan will list out all the offers and assure you minimum documentation. So now the question is, how minimal are the procedures involved in sanctioning of a pre-approved loan and what are its quintessential features?

Credit history and Pre-approval Process

Banks analyse your credibility by reviewing the track record of accounts you maintain with them. For instance, your savings account reveals a set of information related to cash outflow, existing loans, and outstanding payments. Even your credit cards provide details of your financial transactions, which gives banks an understanding of your approach towards debt repayments. Generally, banks take into account the above mentioned parameters to decide the amount that you could be eligible for.

Pre-approved Loan Sanctioning

Pre-approval does not guarantee you a personal loan sanctioning and it is purely based on the successful verification of documents required by the bank for processing your request. By and large, the conditions for pre-approval are similar to that of a regular loan request, as borrowers will have to submit documents such as bank account statement, income statement, PAN number, etc. For existing customers, the process would be comparatively simple as banks would have verified all the essential details before offering a pre-approved loan. For secured loans, the sanctioning is subject to satisfactory valuation of the property being mortgaged.

Features of a Pre-qualified Personal Loan

  • Banks generally offer discounts on the interest rates of a pre-approved loan.
  • Loan processing is faster for existing customers
  • Pre-approved loan offers are valid only for a limited period.
  • Negotiating with the lender organization becomes easier
  • Pre-approved loans have charges that are not refundable once you have opted for it
  • Loans can be availed within three to four days from the date of application

Things to consider while Opting for Pre-approved Loans

  • Ask yourself whether you are in need of such a loan, and go for it only if you find it necessary. Always keep in mind that loans come with terms and conditions, even if it is pre-approved
  • Compare the discounts and offers under a pre-approved loan with that of a regular loan product. It will help you evaluate the benefits and arrive at the right decision
  • Make sure that the loan amount being sanctioned meets your requirement. Banks approve loans based on your credit history and prepayment record, therefore it may not be necessary that pre-approved loans offer you the right amount you need.

Documents required for Pre-approved Loan

Documents to be submitted at the time of application depends on whether the person is salaried or self-employed. It generally includes all the documents required for a regular loan sanctioning. However, applicants will be exempt from prior checks and complex procedures involved in a normal loan application.

This Page is BLOCKED as it is using Iframes.