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A Personal Loan is a go-to solution for all short-term financial needs. You can use the loan for a medical emergency, a wedding, a family vacation, a home renovation, and so much more. Most people looking for a Personal Loan are concerned about whether the lender would approve their application. But do you know you might already be Pre-Approved for a Personal Loan? Let’s take a look at what Pre-Approved Personal Loans are, their eligibility criteria, advantages, and more.
A Pre-Approved Personal Loan is offered to select customers based on their creditworthiness by their respective banks. For instance, if you are an AU Small Finance Bank customer holding a Savings Account, you may be eligible for a Pre-approved Personal Loan at a preferential interest rate.
Compared to a standard Personal Loan wherein borrowers must submit various documents to showcase their eligibility, Pre-Approved Loans require minimal to no documentation as it is offered only after assessing your eligibility.
Pre-Approved Loan offers are only available to customers having an existing relationship with a bank. Below are the factors that enable banks to assess one’s eligibility for a Pre-Approved Personal Loan:
1. Credit Score
The credit score is a 3-digit score that reflects your creditworthiness. Based on how you’ve dealt with credit products, such as Loans and Credit Cards, in the past, credit bureaus like CIBIL TransUnion, Experian, Equifax, and CRIF High Mark compute your credit score. You might be eligible for a Pre-Approved Personal Loan if you have a good credit score.
2. Transaction History
Your transaction history is also used to assess your creditworthiness. For instance, if you already have a Salary Account with a bank, the bank knows your monthly income and ability to repay a Loan. Based on this information, the bank can offer you a Pre-Approved Personal Loan up to a specific limit.
3. Previous Loans
If you’ve already taken a Loan from the bank in the past and repaid it on time, the bank will consider you a responsible borrower eligible for Pre-Approved Loans. Similarly, if you are using a Credit Card taken from a bank and have been paying the dues on time, you might be eligible for a Pre-Approved Personal Loan.
Below are some of the benefits of availing a Pre-Approved Personal Loan from AU Small Finance Bank.
AU Small Finance Bank offers Pre-Approved Personal Loans online and offline. Customers eligible for a Pre-Approved Personal Loan can apply for the same via AU 0101 App/NetBanking.
