When you need money, personal loan can be the right option. There are two types of personal loans. One is regular personal loan and the other is pre-approved personal loan. Pre approved personal loan is different from regular loan in some way, here we are telling about it…
You can take pre-approved loan without submitting documents
To avail a pre-approved personal loan, borrowers do not need to apply to the bank or submit any documents. Banks give this loan to their customers on the basis of their existing relationship.
The bank already checks whether the customer fulfills their eligibility criteria or not. Generally, banks give this loan only to customers with high credit scores. Pre-approved loans are also offered as top-up to customers who already have a loan.
Regular personal loan approval takes time
To apply for a regular personal loan in any bank or NBFC, documents ranging from identity and address proof to bank statement are required. Banks or NBFCs give these loans on the basis of income, cash-flow, credit score and repayment capacity.
The interest rate is also decided on this basis. An applicant with good repayment capacity, good credit score and income can get a loan at low interest. However, this loan takes more time to process than a pre-approved personal loan.
Benefits of pre approved loan
- Fast Processing: Since the bank already has the customer financial details, the loan is disbursed immediately.
- No Documentation: No documents of any kind are required. The bank offers loan on the basis of already existing documents.
- No Collateral: Like regular loans, pre-approved loans are also unsecured. That means no collateral is required for this.
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