- 1 Pre-approved Personal Loans: What They Are, How Much They Cost, and Who May Get Them
- 2 What are pre-approved loans?
- 3 Benefits and features of a Pre-Approved Personal Loans
- 4 The eligibility criteria for obtaining pre-approved Loans
- 5 Documents required for pre-approval of loans
- 6 Things to consider before applying for a Pre-Approved Personal Loan
- 7 Tips for Getting Pre-Approved For A Personal Loan
- 8 Myths about Pre-Approved Loans
- 9 Final Word
- 10 FAQs regarding Pre-Approved Personal Loans
Pre-approved Personal Loans: What They Are, How Much They Cost, and Who May Get Them
A pre-approved personal loan is a short-time personal loan sanctioned for customers who are currently customers of banks, as well as non-banking financial institutions, based on your prior track record of repaying. It’s a short-term credit approval based on the benefit of a good credit score and credit history of repayment. If you have an acceptable credit score, it is considered that you will be one step closer to having the chance to get an approved personal loan.
This article discusses the benefits of the benefits, eligibility requirements, documentation required, and interest rates for personal loans that are pre-approved. Learn more before you apply!
What are pre-approved loans?
Pre-approved loans are loans for personal use that your bank has accepted before the time you apply for a loan. It is a benefit for customers with good credit scores. They require less processing time and are paid out more quickly. What are the interest rates for pre-approved loans? Find out in the following section.
Benefits and features of a Pre-Approved Personal Loans
PaydayChampion’s approved individual loans include the following benefits and features:
- Instant Approval
Requesting a loan through PaydayChampion takes just one minute (sometimes just a few seconds). So it is possible to get a personal loan from PaydayChampion approved digitally, and funds are immediately transferred to your account in the bank.
- 100% Paperless
There isn’t any documentation required to get a personal loan from PaydayChampion, which could double as an approved loan. All you need is your Card number, which must be entered without difficulties uploading any documents.
A personal loan from PaydayChampion can be taken and paid back within a period of is 36-months. The loan is sanctioned through PaydayChampion’s technologically-driven process.
- No Collateral
There is no requirement for collateral or a third-party guarantee to get a personal loan from PaydayChampion.
- EMI Calculator
The loan EMI calculator will display how large the net EMI amount you have to pay each month. You can modify your loan amount and tenure to discover the EMI that is most appropriate to your needs based on your available income.
The eligibility criteria for obtaining pre-approved Loans
Usually, most personal loan financer requires you to meet specific requirements to be eligible for the pre-approved loan facility. However, as PaydayChampion is a tech-driven company that uses a model to allow loans, there are no pre-determined eligibility requirements for this.
Private lenders typically ask for these conditions for eligibility:
- Age: The age requirement to get a personal loan is usually 18. The maximum limit is set at 65. For specific financial institutions that can meet the minimum age requirement, it may be increased to 21-25 years.
- Job: You must be a salaried worker or self-employed person to be eligible for loans.
- Income-Based on the requirements set by the lenders, you will earn the required amount to qualify for this loan. The amount of income you make could differ from the lender.
- The minimum credit score should be at least 650.
Documents required for pre-approval of loans
To get pre-approved loans, you must provide certain documents to most private lenders. You must not submit documentation when applying for a personal loan through PaydayChampion. You can use it via the mobile app by providing your Card number.
To be eligible for pre-approved loan offers by private lenders, you must submit the below documents:
- Identity evidence
- Proof of income, salary slips, bank statements, and so on.
- Age evident
- Address evidence
- Recent color photos
Things to consider before applying for a Pre-Approved Personal Loan
- Think about asking your bank about the processing fees.
- Personal loans pre-approved by a lender are only valid for a specific time since they constitute an Invitation to Apply (ITA). It is necessary to apply within that time to be eligible for an approved personal loan.
- Review the rates of interest and processing costs of different personal loans that are pre-approved.
Tips for Getting Pre-Approved For A Personal Loan
Here are some tips to consider when applying to obtain an approved personal loan:
- Maintain a good credit score. If you have a credit score that is 750 or over is considered to be excellent to get an approved personal loan at a lower interest rate.
- Be on the lookout for your bank’s website to see if they offer pre-approved loans for individuals.
- Find out the advantages that are included in the approved personal loan.
- Check your interest rate, processing charges, and terms and conditions.
Myths about Pre-Approved Loans
While pre-approved loans are prevalent, some myths about them are identical.
There is no guarantee that the loan you apply for is approved until it has been pre-approved. Loan approval may be challenging if your information and required documents are not checked.
Receiving the loan
If you are unsatisfied with these terms or conditions, there’s no pressure to agree to the loan. You can select your loan amount, tenure, and the amount of EMI based on your preferences and your disposable income.
There are some aspects of penalty if you cannot meet the required conditions or fail to repay the loan in time, which must be considered. Paying your loan in time is vital because it could impact your credit score.
An approved personal loan is a collateral-free option to borrow money that will help you get funds at attractive prices from banks. Suppose you have a good credit score and are already a financial institution customer and can get a pre-approved loan in just a few minutes, with no documents. Install the PaydayChampion application on Android and iOS to apply for a personal loan now!
FAQs regarding Pre-Approved Personal Loans
Q1. Are you able to be denied credit after pre-approval?
Your loan application could be rejected if your documents are not checked for accuracy. The digital verification is instantaneous if you opt to apply for a personal loan from PaydayChampion. Your loan approval will not be denied until it’s digitally approved through PaydayChampion’s application, based on technology.
Q2. Is pre-approval a guarantee that a loan will be granted?
No, a pre-approval is not a guarantee that you will be able to get a loan since incomplete documentation could result in the cancellation of the application.
Q3. Can a loan that has been pre-approved being used for wedding purposes?
A pre-approved loan is one type of personal loan. It is, therefore, a loan with multiple purposes that can be used for any reason. For instance, the personal loan from PaydayChampion can be used for any reason.
Huxley Forbes is the Managing Editor at PaydayChampion. He is responsible for PaydayChampion's content strategy and assists in the production of loans reviews, student loan guides, as well as other material to answer financial concerns and assist them to save money. Huxley Forbes came to PaydayChampion as an author in the year 2011, when he joined as a writer. In the years since, Forbes has been helping to build PaydayChampion from scratch becoming one of the senior members of the team.