What is a Pre-Approved Personal Loan?
A pre-approved personal loan is an instant loan that is offered to creditworthy customers. Such loan offers are extended to eligible customers without any security or collateral. A pre-approved loan has a quick processing time and is disbursed much faster than traditional personal loans.
Through MoneyTap, you can get a pre-approved personal loan in the form of a personal line of credit. This line of credit has a pre-approved credit limit of up to ₹5 Lakh, which you can use as and when you need it.
Common Uses of a Pre-Approved Personal Loan
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- Medical Emergency
A pre-approved personal loan gives you instant access to credit which can be used to pay for medical expenses that your health insurance may or may not cover.
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- Wedding
In India, weddings are a grand affair. If your budget stretches a bit or if you come across last-minute surprises, a pre-approved personal loan helps you pay for the unaccounted expenses.
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- Unplanned Vacation
When an unplanned vacation cannot be avoided, a pre-approved personal loan helps you to cover the unplanned travel expenses.
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- Child’s Education
Education is getting expensive with each passing year. With no increase in income, you may not have the money to financially support your child’s aspirations. A pre-approved personal loan is hassle-free and offers you the liberty to use the funds to pay tuition fees, books, travel, lodging, food, etc.
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- Home Renovation and Repairs
You may have the budget for your home renovation project, but most often than not, the cost of home renovation exceeds your budget. A pre-approved personal credit line can help you with your home renovation and home repairs when you fall short on funds.
Features and Benefits of Pre-Approved Personal Loan
- Pre-Approval within a few minutes – Through MoneyTap, you get pre-approved for a personal loan in just a few minutes.
- No collateral required – MoneyTap pre-approved personal line of credit doesn’t require the borrower to pledge any security or collateral.
- Minimum documentation – MoneyTap pre-approved personal loan is a hassle-free online process which requires minimal or no paperwork.
- Less processing time – The loan approval is done in real-time, thus speeding up the loan processing time, enabling borrowers to have access to credit faster than traditional personal loans.
- Flexible repayment – At MoneyTap, borrowers enjoy flexible repayment options, allowing you to choose the repayment tenure that best suits your repayment capacity.
Eligibility Criteria
- A full-time salaried employee with a minimum income of ₹20,000/month
OR
A self-employed professional with a minimum income of ₹20,000/month - Above 23 years and below 55 years of age
Required Documents
- Pan Card Number
- Professional Selfie
(To be taken on the MoneyTap App) - Address Proof
(Valid Driving License / Valid Passport / Aadhar Card) - ID Proof
(Valid Driving License / Valid Passport / Voter’s ID / Aadhar Card / Pan Card)
How to Get Pre-Approved Personal Loan Through MoneyTap
Apply online with 3 easy steps:
- Download the MoneyTap app
- Fill in your details
- Get approved within minutes
Points to Consider Before You Apply for a Pre-Approved Personal Loan
- Choose a repayment period that allows you to repay the loan in comfortable EMIs.
- Compare the interest rate with other personal loan offers to ensure that you get the best pre-approved personal loan deal.
- Submit the documents carefully. Any wrong or irrelevant documents can get your pre-approved personal loan offer rejected.
- Go through the terms and conditions of the loan carefully with special attention on the applicable fees and charges.
FAQs
What does it mean to be pre-approved for a personal loan?
Banks and financial institutions carry out the risk assessment by analysing the customer’s financial standing, credit score and credibility. Pre-approved personal loans are then offered to individuals who have clean credit behaviour and are creditworthy.
What is the pre-approved amount that can be sanctioned?
The loan amount sanctioned depends on your credit history and credit repayment track. MoneyTap pre-approves a loan amount of up to ₹5 Lakh.
How much time does it to disburse a pre-approved personal loan?
Through MoneyTap, personal loans are pre-approved within 4 minutes, and the disbursal takes place within a couple of days once the final verification is done.
How personal loans differ from pre-approved personal loans?
Both personal loans and pre-approved loans are unsecured, short-term loans. However, the differences between personal loans and pre-approved loans are:
- Banks and other financial institutions lure creditworthy customers to apply for a personal loan with a pre-approved loan invitation. On the other hand, people needing a personal loan has to apply for a personal loan, and this application can be accepted or rejected by the lender.
- Pre-approved personal loan offers are available only for a limited time.
- In a pre-approved loan, the risk assessment of the existing customer is already done, and then the offer is extended to eligible individuals. Whereas, in personal loans, the risk assessment is done after the individual applies for the personal loan.
- Pre-approved loans are disbursed quicker than personal loans.
- Since the lender already has the documentation required to process the loan, less or no paperwork is required for pre-approved loans.
