Recently, there has been a huge upsurge in the Personal Loan for self-employed. Various lenders in the market offer Personal Loans for self-employed as well as for salaried individuals. While applying for a pre-approved Personal Loan, you must understand a few major differences between a Personal Loan and a pre-approved Personal Loan. You can apply for a Personal Loan at any time whereas a pre-approved Personal Loan is for a specific period. Another advantage of a pre-approved Personal Loan is the disbursal time is lesser than Personal Loan. A pre-approved Personal Loan gets disbursed within minutes.

Now let us understand pre-approved Personal Loans in detail:

A Pre-approved Personal Loan

A lender provides a pre-approved Personal Loan to borrowers with a good credit score and repayment history. A pre-approved Personal Loan falls under the category of a short-term and collateral-free loan. A pre-approved loan is offered to an existing and eligible borrower who has already qualified for the loan with their previous financial history and credit score.

Features of Pre-approved Personal Loan

• Quick approval: As you already have met the requirements for a Personal Loan, lenders are likely to process your pre-approved Personal Loan instantly.
• Minimal documentation: A pre-approved Personal Loan is considered hassle-free as the documentation requirement is minimum. If you are an existing customer with the bank, you will not have to worry about the documents such as KYC (Know Your Customer), bank, income details, etc as it is already present with the lender.
• Collateral free: For a pre-approved Personal Loan, a lender does not ask for collateral or any security to avail of an instant loan. It is an added advantage for a borrower who does not possess any personal assets.
• Loan Amount: A loan amount for a pre-approved Personal Loan varies for every borrower. Factors such as credit history, credit score, and repayment record play a significant role in deciding the loan amount.

What are the eligibility criteria required for a Pre-approved Personal Loan?

You get a pre-approved Personal loan when you meet the below-mentioned eligibility:

• Must have a good credit history.
• Must have a good credit score.
• Must have sufficient income.
• Must meet the minimum bank balance requirement.

Documents required for Pre-approved Personal Loans

Below are the required documents that you must submit while applying for a pre-approved Personal Loan:

• Current address proof (Passport/Utility bills/Rent Agreement)
• KYC (Know Your Customer) documents like an Aadhaar/PAN Card
• Latest salary slips and salary credit bank statements from the last 3 months.
• Proof of employment, such as official mail ID confirmation /Emp ID Card.

How to apply for a pre-approved Personal Loan?

You can apply for a pre-approved Personal Loan by following the below-mentioned process:

• Step 1: Visit the lender’s official website and check for the pre-approved loan section.
• Step 2: Fill in the provided form and enter the details name, phone number, etc.
• Step 3: Enter the OTP (One Time Password) and verify all the details.
• Step 4: Choose from the available pre-approved offers provided by the lender.
• Step 5: Select the required tenure and check all the required loan details.
• Step 6: Lastly, confirm the loan application.

How can you get a pre-approved Personal Loan?

If you are looking to get a pre-approved Personal loan, you must follow the below-mentioned tips:

• One of the major factors for a pre-approved Personal Loan is maintaining a high credit score. An individual with a higher credit score, a good credit history, a stable income, repayment record is eligible for a pre-approved Personal Loan.
• Pre-approved Personal Loans are available for a certain period. You must check with your lender to avail of a pre-approved Personal Loan within that specific period.
• While availing of a pre-approved Personal loan, you must read all the terms and conditions with your lenders as there are various fees and charges involved.
• If you have various pre-approved Personal Loan options, you must compare all the pre-approved Personal Loan options.

Conclusion

In conclusion, you must be vigilant while opting for any type of loan. It is not necessary to avail of a pre-approved Personal Loan just because it was offered to you. A Personal Loan is a financial responsibility on your shoulders, hence you must avail of the same only when required. As a responsible borrower, you should always visit the official website of the lender. By checking the website, you will have the comprehensive list of documents required for a Personal Loan for the self-employed. Also, it is a good habit to lender’s official website as it will help you gain knowledge about the new pre-approved Loans.