Pre-Approved Personal Loan

A pre-approved personal loan is an offer provided by a lender to select existing customers with a strong credit profile. Such loan offers are disbursed on the same day or within a few hours of the loan application. Before offering this facility, banks and NBFCs conduct an initial credit assessment of their customers, taking into account factors such as their credit score, employment status, income, etc. On Paisabazaar, you can easily check pre-approved offers from multiple partner lenders - all in one place, with an end-to-end digital process.

Most banks and NBFCs provide preferential interest rates on pre-approved loans to their existing customers, but this does not guarantee the lowest rates. It is important for prospective borrowers to compare personal loan interest rates from multiple lenders where they have existing accounts, loans, or credit cards. This ensures that borrowers can get personal loans at the most favorable terms, rather than simply accepting the pre-approved offer.

Banks and NBFCs offer you a pre-approved personal loan primarily on the basis of your credit profile. Lenders usually consider your account balance & transaction pattern, recent salary credits, existing debt obligations, employment history, loan repayment history, etc., and offer to those having a strong credit profile. Key factors for pre-approved eligibility include:

Pre-approved offers are just ‘Invitations to Apply’. Receiving a pre-approved offer increases your chances of approval, but it does not guarantee final approval. If you choose to proceed, your application and supporting documents will undergo a detailed review by the lender. The review may involve additional checks based on the lender’s internal guidelines and policies.

A lender may reject or withdraw your pre-approved offer during the loan application processing if there are any adverse changes in the applicant’s income, credit score, employment status, or other key financial factors.

Getting pre-approved personal loan offers is considered a soft inquiry, as you did not apply for the loan and therefore does not impact your credit score. However, once you accept the pre-approved offer, a hard inquiry may occur, which may lower your credit score by a few points. Therefore, you should not apply for multiple personal loans. First, compare offers of multiple lenders on the Paisabazaar platform and choose the one that suits your financial needs.

Higher Approval Chances

Pre-approved offers are offered to individuals who have already passed an initial screening by the lender. As a result, your chances of approval are generally higher compared to applying for a new personal loan from scratch.

Faster Processing

Since the lender has already completed the initial evaluation, the processing time for a pre-approved loan is significantly faster. Once you accept the offer, the final approval and disbursal process is streamlined, helping you access funds quickly.

Minimal to Zero Documentation

Lenders usually do not require fresh documentation when processing pre-approved personal loans, as they already have the necessary KYC documents (proof of identity, address, and income) for their existing customers. This minimizes paperwork and speeds up the loan approval process for those in urgent need of funds.

More Favorable Terms

Lenders offering pre-approved loans may provide better terms, such as a lower interest rate, since they’ve already evaluated your creditworthiness.

Unlike regular personal loans, where the borrower initiates the application, a pre-approved loan is proactively offered by the lender. Check below the differences:-