Know How to Get a Pre-Approved Personal Loan in India?
Are you looking for immediate funds without any eligibility and documentation-related complications? A pre-approved loan will be your best possible solution.
If you require immediate funds for a wedding, vacation, education, home renovation, or medical emergency, a personal loan can be your best possible financing solution. However, if you already have an existing loan, contacting your current lender for another personal loan or loan top-up will make your loan process much easier and faster. These are pre-approved loans that your existing lender may offer you based on your repayment history.
Are you looking for immediate funds without any eligibility and documentation-related complications? A pre-approved loan will be your best possible solution. Many lenders offer these loans to their select customers who have maintained an exceptional repayment history. Like personal loans, these loans are also unsecured that you may avail without any collateral, guarantor, or security. Thanks to their paperless documentation and online application procedures, you may avail them within minutes.
Are you looking for a pre-approved personal loan in India? Here you will know how to avail one.
Know Your Loan Requirement
The first step is to assess your loan requirement and calculate how much loan amount you need to borrow. Your lender may offer you a decent loan amount if you have a consistent repayment history. However, you must borrow only what you need. Borrowing more than you require will only lead to unnecessary interest charges and additional loan burdens. Therefore, calculate your expenses and borrow accordingly.
Check Your Eligibility
The chances are that if you already have an existing loan with the lender, you fulfill their eligibility conditions. However, your eligibility might have changed over time due to age, income, DTI ratio, etc. The lender might have revised their eligibility criteria since you last applied for their loan. Therefore, check the lender's current eligibility conditions and ensure that you fulfill them before applying for a loan.
Check Your Credit Score
Your lender will offer you a pre-approved personal loan only if you maintain a consistent repayment history for your EMIs. If you repay your EMIs regularly on time, you must have maintained a high credit score, which is crucial for getting loan approval at the best personal loan interest rates. However, your credit score may get affected due to several other factors, like your DTI ratio, credit utilization rate, credit length, errors in the credit report, etc.
Most lenders have a minimum credit score requirement that you must fulfill to apply for a loan. Therefore, check your credit score and ensure it is over 700-750 to get a decent loan amount with favorable terms and conditions.
Apply for a Pre-Approved Loan
You don't need to visit your lender's office to apply for a loan. Since most NBFCs allow online loan applications through their websites and apps, you can fill up their online loan application form, provide the required details, and apply. If you are eligible, you will get your loan confirmation almost instantly.
Submit Your Documents
Since you are an existing customer of your lender, you must have already submitted your identity proof. However, if you have changed your address, you must also submit your residence proof. You also need to submit your income proof to show your current income and repayment capacity.
These days, NBFCs support a 100% online documentation procedure, which means you don't need to visit the lender's office to submit your documents. You can scan and upload your documents through the lender's website or app, and they will verify them within minutes.
Select Your Loan Tenure
The loan tenure you select determines the EMI amount you must pay each month. Opt for a long loan tenure if you wish to keep your EMIs small, but you will spend more on the interest outgo. On the contrary, select a short loan tenure if you can pay a higher EMI amount and want to save your interest cost. Use a personal loan EMI calculator to calculate your EMIs suitable to your repayment capacity.
Make a Repayment Plan
Once you get your pre-approved loan, the next big thing you must keep in mind is to repay its EMIs on time. In fact, you must know your repayment capacity and make a repayment plan even before applying for a loan. Do not borrow a loan if you are not sure of its EMI management. Activating the e-mandate is one of the best ways to stay consistent with your timely EMI payments.
Important Points to Remember
Are you looking for a pre-approved personal loan from your current lender? These are a few things to keep in mind:
- Maintain a high credit score since it will go a long way in getting your loan approval quickly.
- Ensure that your current DTI ratio is not more than 30-40% since it will help you get the best personal loan interest rates from your lender.
- Use your credit responsibly to keep your credit utilization ratio below 40%.
- Diversify your credit portfolio with different loan types to improve your credit score.
Your lender will evaluate your creditworthiness and offer you a pre-approved loan only if you maintain a good repayment history. You may use it to cover your personal expenses and maintain financial stability without stressing your budget.