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
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