Pre-approved loans are instant personal loans that are offered by banks and NBFCs to select customers. Lenders select these customers based on credit history, their business relationship with the lender and repayment capacity among other factors.
This blog talks about what parameters banks set while selecting customers while offering pre-approved personal loans.
Here are some of the benefits of pre-approved personal loans:
Pre-approved loan offer suggests that the concerned lender already approved a pre-defined loan amount. All you need to do is select your preferred loan amount within the pre-approved offer threshold and apply. The loan amount would be credited to your account within seconds.
You can get a pre-approved loan without documents. The lender has already checked your credit profile and customer history at the backend.
You have the flexibility to choose the loan repayment tenure. Personal loans usually come with a tenure of 5 to 7 years. Select the repayment tenure as per your convenience.
Personal loans are unsecured loans. You don’t need to pledge collateral to get a personal loan.
Lenders usually offer competitive interest rates on personal loans. This is done to compel the target customer to take the loan. However, some lenders can charge higher interest rates if they figure out you’re desperately looking for a loan.
You can follow the given steps to apply for pre-approved personal loans from your bank or any NBFC:
You don’t need to provide any document to avail of a pre-approved loan. However, keep these IDs in handy in case your lender asks:
Eligibility criteria for pre approved loans vary from one lender to another. Here are some general criteria:
Calculating your EMIs beforehand will help you decide your loan tenure and manage your finances accordingly. It will help you to be sure about the loan repayment plan as well.
You can calculate your EMI manually with a simple formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Here, P is the principal amount, R is the rate of interest and N is the number of months or tenure.
However, it is quite evident that manual EMI calculation can get hectic and leaves room for error. To avoid such hassles, you can use an online personal loan EMI calculator. You just have to enter the loan amount, rate of interest and loan tenure to get the EMI estimate within seconds. This will help you save time and get accurate results.
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 |
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. However, pre-approved loan offers could be valid only for a certain period of time.
Ans: In case 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.
Ans: No, a pre-approval can never guarantee a loan as incomplete verification of the documents provided might cancel the application.
Ans: A pre-approved loan is a type of personal loan. Therefore, it is a multi-purpose loan that can be utilised for any purpose whatsoever. Even a personal loan from Navi can be used for any purpose.
Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Get personal loans up to ₹20 lakh starting at 9.9% p.a. Install the Navi app now!
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
How to Apply for ₹5,000 Loan on Aadhaar Card?
Aadhaar card is an essential identity proof for all Indian citizens. From opening a new bank accoun... Read More »How to Get ₹20,000 Loan on Aadhaar Card?
Short on cash? What if we told you it's possible to get an instant, convenient, paperless ₹20,000... Read More »How to Get ₹10,000 Loan on Aadhaar Card?
Need ₹10,000 cash urgently to pay your rent or bills? Don’t worry, you can take a ₹10,000 loa... Read More »How to Get ₹50,000 Loan on Aadhaar Card?
Financial emergencies come unannounced. In such a situation, taking an instant personal loan could ... Read More »Peer to Peer (P2P) Lending – Features, Working, Benefits and How to Apply?
Peer-to-peer lending is an alternative financing system that enables borrowers to get loans from ot... Read More »How to Get Urgent Cash Loan without Documents Online in India?
An urgent cash loan without documents is a quick and easy solution for individuals in need of sudde... Read More »What is a Cash Credit Loan and How to Apply for it?
What is a Cash Credit Loan? A cash credit loan is a short-term loan given to businesses to meet ... Read More »How to Get Small Cash Loan on Aadhaar Card without PAN Card?
Small cash loans are loans offered by banks and NBFCs to meet short-term financial requirements. Th... Read More »What is an Aadhaar Cash Loan and How to Apply for it?
Aadhaar Cash Loan Aadhaar cash loan is a financial service provided by banks and NBFCs (Non-bank... Read More »Instant Loan without CIBIL Score
A good CIBIL score is necessary to avail of a loan on favourable terms and conditions. But, what ab... Read More »What is a Top up Loan and How to Apply for It?
Understanding Top Up Loan A top up loan is an additional fund that you can avail above your exis... Read More »Instant Personal Loan on Aadhar Card
As a taxpayer, you must have understood by now the role of PAN and Aadhaar while filing your income... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
FEE FREE MONTH
No Processing Fee on Cash Loan