A pre-approved personal loan is a short term personal loan that is sanctioned for the existing customers of the banks as well as other non-banking financial institutions on the basis of your previous record of repayment. It is a short term credit approval with a good credit score and credit repayment history. If you possess commendable creditworthiness, you are considered to be a step closer to avail the opportunity of accessing a pre-approved personal loan.
This post discusses the features, benefits, eligibility, documents required and interest rates of pre-approved personal loans. Read to get the details before applying!
Pre-approved loans are personal loans that are approved by your bank before you have even applied for a loan. It is a feature that most banks offer their existing customers who have good credit scores. You do not require to offer collateral to avail of this loan. Moreover, pre-approved personal loans have less processing time and are disbursed faster, sometimes within minutes. So, what are the interest rates of pre-approved loans? Find out in the section below.
|Banks or NBFCs||Interest Rates (p.a)|
|Navi||Starting at 9.9%|
|Punjab National Bank (PNB)||7.90% – 14.50%|
|State Bank of India (SBI)||9.60% – 13.85%|
|HDFC Bank||10.25% – 21%|
|ICICI Bank||10.25% onwards|
|Axis Bank||10.25% onwards|
|IDFC First Bank||10.49% – 23%|
|Kotak Mahindra Bank||10.25% onwards|
|Tata Capital||10.99% onwards|
|IndusInd Bank||11.00% onwards|
|IDFC First Bank||10.49% – 23%|
|Bajaj Finserv||13.00% onwards|
*This table is used for educational purpose only.
Navi pre-approved personal loans have the following features and benefits:
1. Instant Approval
The entire process of loan application through Navi takes less than a few minutes (sometimes seconds). Thus, a personal loan from Navi is digitally approved, and the money is instantly transferred to your bank account.
2. 100% Paperless
There is no documentation needed for a personal loan from Navi which can double up as a pre-approved loan. Only your Aadhar Card number and your PAN number need to be entered without any hassle of uploading any documents.
A personal loan from Navi can be taken up to INR 10 lakhs which can be repaid within a tenure of 36 months. The loan is approved by Navi’s technology-driven process.
4. No Collateral
There is no need for collateral or a third-party guarantee to apply for a personal loan from Navi.
5. EMI Calculator
The online loan EMI calculators will show the net EMI amount payable every month. You can customize the loan amount and tenure to find the EMI best suited for you per your disposable income.
Usually, any personal loan financer requires you to fulfil certain minimum parameters to avail of the pre-approved loan facility. However, since Navi follows a technology-driven model to approve loans, there are no fixed eligibility criteria for the same.
Most private lenders ask for these eligibility conditions:
|Age||The minimum age limit to apply for a personal loan is usually 18 years while the maximum is 65 years. For some financers, the minimum age limit can be raised to 21-25 years|
|Occupation||You should either be a salaried employee or a self-employed individual to avail of the loan facility.|
|Income||Depending on the specifications by the lenders, you should be earning the necessary amount to avail of the loan facility. The income levels may vary from lender to lender.|
|Credit||The minimum credit score should be 650+|
Also read: How To Improve Your Credit Score
To avail of pre-approved loans, you are required to submit certain documents to most private lenders. However, in the case of applying for a personal loan through Navi, there is no need to submit any documents. You can simply apply through your mobile application by providing your PAN and Aadhaar Card number only. There is no hassle of uploading any documents on the app.
However, in order to apply for pre-approved loans offered by other private lenders, you need to submit the following documents:
Here are a few tips to be considered for a pre-approved personal loan:
Although the pre-approved loan is quite a common and popular phenomenon, yet there are certain myths regarding the same.
Assurance of Getting the Loans
There is no assurance that your loan will be granted once it is pre-approved. If your details and the necessary documents cannot be verified, loan approval might be an issue.
Receiving the Loan
If you do not accept the terms and conditions of repayment, there is no pressure on you to accept the loan. You can choose the loan amount, tenure and EMI as per your convenience and disposable income.
There are surely certain aspects of penalty in case you cannot meet the relevant criteria or fail to repay the loan on time, which needs to be considered. Repayment of your loan on time is extremely important as it might also affect your credit score.
A pre-approved personal loan is a collateral-free borrowing option that can help secure funds at competitive interest rates from your bank. If you have a good credit score and are already an existing customer of a bank, you can get a pre-approved loan within minutes with minimal documentation. Download the Navi app on Android or iOS and apply for a personal loan now!
Q1. Can you be denied a loan after pre-approval?
Ans: In case if your submitted documents cannot be verified successfully for any reason, your pre-approved loan application might be denied. However, if you apply for a personal loan from Navi, your digital verification happens instantly and since there is no hassle of uploading any documents, the loan approval would not be denied after it has been digitally approved by Navi’s technology-driven application.
Q2. Does pre-approval guarantee a loan?
Ans: No, a pre-approval can never guarantee a loan as incomplete verification of the documents provided might cancel the application.
Q3. Can a pre-approved loan be used for family marriage purposes?
Ans: A pre-approved loan is a kind of personal loan. Therefore, it is a multi-purpose loan that can be utilized for any purpose whatsoever. Even a personal loan from Navi can be used for any purpose.
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