Pre-Approved Personal Loan: All You Need to Know

Pre-Approved Personal Loan: All You Need to Know

 

Obtaining a Personal Loan is no far-fetched affair today. No waiting in long queues in your bank branch! No filling of details in multiple application forms! If you need funds to finance your higher education, a wedding or a trip, reimburse a sudden loss of job, or for consolidation of debts, medical emergency, etc., Personal Loan is the answer.

Banks Interest rate (%) Processing fee
Allahabad Bank 8.55% – 13.05% 1.06% of loan amount (Minimum Rs. 1068)
Andhra Bank Clean Loans: 11.70% – 13.20% Not available
Bank of Baroda 11.55% – 16.55% 2% of Loan amount (Minimum: Rs.1000 to Maximum Rs.10,000)
Bank of India 12.10% – 14.10% up to 2% of loan amount (Minimum Rs.1000 to Maximum
Rs.10,000)
Bank of Maharashtra 11.75% – 12.75% 1% of the Loan Amount (Min.:Rs.1000)
Canara Bank 11% – 14% 0.5% of the loan amount (Minimum Rs.1000 and Maximum Rs. 5000)
Central Bank of India 11.60% Rs. 500 + S.T
Corporation Bank 12.85% – 13.85% 1.50% (Min. of Rs. 500)
Dena Bank 13% – 14% 1% of loan amount
IDBI Bank Limited 10% – 12.75% up to 1% of the loan amount + applicable taxes
Indian Bank 10.65% – 11.25% 0.51% on loan amount with a max. of Rs. 510
Indian Overseas Bank 11.95% – 13.70% 0.50% (Upto Rs. 5,00,000)
0.75% (Above Rs. 5.00.000)
Oriental Bank of Commerce 10.25% – 12.25% 0.50% of the loan amount with a minimum of Rs. 500 + Service tax, if any
Punjab & Sind Bank 12.80% – 14.05% 1% of the loan amount
Punjab National Bank 12.05% – 15.05% 1.80% of loan amount (Rs. 270 – Rs. 450)
State Bank of India 11% – 17.05% up to 1% of the Loan amount
Syndicate Bank 12.65% – 13.65% 0.50% of the Loan amount with minimum of ` 500
UCO Bank 11.40% – 11.65% 1% of loan amount (minimum Rs.750)
Union Bank of India 13.65% 0.50% of the loan amount, subject to minimum of Rs. 500, plus applicable GST.
United Bank of India 13.95% – 14.20% 1% of the loan amount sanctioned
Vijaya Bank 12.55% – 13.55% Processing charges: up to 0.75% of loan amount + GST.
Axis Bank Ltd. 15.75% to 24% 1.50%-2.00%+GST
Bandhan Bank Ltd. 15%-18.55% 1%+GST
Catholic Syrian Bank Ltd. 12%-19% 1% of loan amount subject to minimum of Rs.250
City Union Bank Ltd. No Information available on website No Information available on website
DCB Bank Ltd. They do not provide PL They do not provide PL
Dhanlaxmi Bank Ltd. 10.40%-10.90% Upto 2.5% of loan amount subject to minimum of Rs.1250
Federal Bank Ltd. 11.49%-14.49% 0.50% of loan amount subject to minimum of Rs.500
HDFC Bank Ltd 11.25%-20% Upto 2.5% of loan amount subject to minimum of Rs.1999
ICICI Bank Ltd. 10.99%-22% Upto 2.25% of loan amount+GST
IndusInd Bank Ltd 10.50%-30.50% Upto 2.5% of loan amount subject to minimum of Rs.1000 plus taxes
IDFC Bank Ltd. Rates not available on website (As per our info- 10.99%-15%) Upto 2% of loan amount
Jammu & Kashmir Bank Ltd. They provide Consumer Loans They provide Consumer Loans
Karnataka Bank Ltd. 12.70% 0.50% of loan amount subject to minimum of Rs.250
Karur Vysya Bank Ltd. 15.90% 0.40% of loan amount
Kotak Mahindra Bank Ltd 10.99%-24% Upto 2.5% of loan amount+GST
Lakshmi Vilas Bank Ltd. Do not provide Personal Loan
Nainital bank Ltd. Website not updated
RBL Bank Ltd. 11%-26.25% Upto 2.5% of loan amount
South Indian Bank Ltd. 11.55%-14.45% 2% of loan amount
Tamilnad Mercantile Bank Ltd. 14.80% 1% of loan amount
YES Bank Ltd. 11.25%-17.5% Upto 2.5% of loan amount subject to the minimum of Rs.999

 

It is no surprise if you have already received multiple Pre-Approved Personal Loan Offers from different banks in your email or as SMS. Seeing the same message pop-up on ATM kiosks after you’ve withdrawn money or when you have logged in to your net banking account is likely.

Apply for Personal Loan Online

Have you ever wondered what a pre-approved Personal Loan is?

When a lender feels that a borrower is creditworthy (based on his/ her public or proprietary information) enough for a Personal Loan, and approaches the said potential customer guarantying him/ her to offer a loan, it is called as a Pre-Approved Personal Loan. Being pre-approved for a loan means you have already passed the initial approval process and are guaranteed to be granted a loan immediately if you apply.

You may have received a pre-approved Personal Loan because of the following reasons:

  • You have a good credit score
  • You have been paying your credit card bills on time
  • You have always paid your loan EMI on time
  • You are backed by a steady and stable income
  • Banks bank upon your creditworthiness
  • Your bank knows that you have saved enough in your savings account.

Do not get driven by the notion that as your Personal Loan is pre-approved, you do not require submitting documents and fulfill certain formalities. Sanctions for the credit are subject to successful verification of all relevant documents. The process of obtaining a pre-approved loan is almost similar to availing a regular loan. A hassle-free procedure is ascertained if you are already an existing customer with the bank. The processing time may be lower compared to other loans.

Getting your pre-approved personal loan

What are the formalities that you need to fulfill until the disbursement of the loan amount? Your bank may ask for submission of certain documents. Hence, if you have got a pre-approved offer and you are all geared up to apply for it, keep the following documents ready:

  • Bank statements
  • PAN card
  • Identity proof
  • Salary slips of last three months
  • Residence proof

Advantages of a pre-approved Personal Loan

A pre-approved personal loan may come with certain advantages and disadvantages. Many a bank offers good discounts; ensure that your bank has offered a good discount too. Quicker loan processing, lower interest rate, increased bargaining power for lower interest rates and extended tenure, and more are a few advantages that you enjoy.

Disadvantages of a pre-approved Personal Loan

It is tempting to avail such offers. Before applying for one, do consider the cons so that you do not regret later. These loans are valid only for a certain period of time. You won’t be eligible if you apply after the offer period expires. Do read the terms and conditions and consider the fees and charges associated.

Opt for a pre-approved Personal Loan only if you genuinely need emergency funds. Ask a few questions to yourself before you apply for it. Do you really need a loan or is it an impulsive decision to cater to your wants? Does it come with extra benefits? Is the interest rate genuine? Are there any hidden charges or fees? Is the loan amount right for you?

 

Also Read: Personal Loan on Aadhar Card

 

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.

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Category: Personal Loan