Summary: A personal loan is provided without any security; therefore, you would not have to submit collateral for a pre-approved personal loan. This article will discuss how to get a personal loan pre-approved by the lender.


When you fall under a financial crunch, you can contact your lender for a pre-approved personal loan facility. Banks and financial institutions provide reliable customers with good credit history. Under this, your lender pre-approves your personal loan before you even apply for one.

What is a Pre-Approved Personal Loan?

A pre-approved personal loan is a financial offering that banks and financial institutions provide for their preferred customers. Lenders offer pre-approved personal loans to existing customers who have been associated with them in some way or the other. Customers who have availed of loans from their lender in the past have the best chances to get a pre-approved personal loan.

If you have an existing or paid-off loan with a lender, your relationship with them will influence your chances of getting a pre-approved personal loan. Your credit score and loan repayment history must be favorable for the lender to consider you for a pre-approved loan. Such loans have been made popular by banks for increasing the rate of quick personal loan products in the country. Following are some features of pre-approved personal loans:

● Pre-approved personal loans have speedy disbursal. This is because you are already a bank customer and do not need to provide any documentation or security.

● Documentation is non-existent as the lender already has everything it needs to know about your personal and financial past. Banks have a database that contains all the important details about their existing customers.

● A pre-approved loan has all the properties of a personal loan. Like personal loans, a pre-approved loan is also highly flexible in repayment tenure. You can choose your preferred repayment tenure as well as EMI volume.

● Pre-approved personal loans can be applied online, making the entire process quicker and simpler. You can visit the online portal of your preferred lender to apply for a pre-approved personal loan.

● Interest rates at which such loans are granted are comparatively lower than usual personal loan rates. This is because lenders come up with special interest rates for their existing customers. Interest rates are low pertaining to the low-risk profile of reliable borrowers.

Steps to Avail a Pre-Approved Personal Loan

While availing of a pre-approved personal loan, you must be aware of the process in detail. While easy to avail, a pre-approved personal loan requires specific requirements per the lender. Every borrower needs to follow a set of steps to apply online.

The steps to avail of a pre-approved personal loan are as follows.

1. The first step is to visit the lender’s official website for the loan application. Although your loan is pre-approved, you have to fill the basic application form, which requires you to visit the online portal.

2. As you are an existing customer of the lender, you can also log in to your net banking account for faster processing.                                                                                                                                

3. Locate the application form to be filled to avail of a quick personal loan. The application would require you to fill in your personal and financial details. You can get an application form at your nearest branch as well.

4. The next step would be to submit the form online or in person. Make sure not to skip any necessary fields in the form.

5. Now, you have to choose the mode of repayment for your personal loan. A pre-approved personal loan gives you the facility to select a payment mode that is most suitable to you.

6. The next step would be to select your preferred repayment tenure.

7. After completing all the formalities, the bank will credit the sum assured in your account.

Eligibility for a Pre-Approved Personal Loan

You have to follow the lender’s eligibility criteria to avail of a pre-approved personal loan. The conditions for eligibility are discussed below.

● First and foremost, you must have a good relationship with the lender. This means that your credit history with your bank should be favorable. The past loans and borrowings under your name must be repaid on time for you to qualify for a pre-approved personal loan.

● Even if you do not have a very high credit rating, the lender still could process your loan. If you have a sufficient balance in your account, the bank might consider you for the pre-approved personal loan facility.

● With a stable and regular income, you can be eligible for a pre-approved personal loan. Banks prefer applicants who have a sustainable source of income. You should have sufficient monthly earnings and a positive debt-income ratio to qualify the conditions for a pre-approved personal loan.

Most banks and financial institutions follow all the points mentioned above for eligibility. Your choice of lender would have their own set of qualifications, but they all would fall broadly under the points mentioned above.

Documentation for a Pre-Approved Personal Loan

Usually, you do not have to submit any documentation for a pre-approved personal loan. However, as a new customer with a good credit score, you need to submit the following documents to avail of a pre-approved personal loan.

● Identity Proof: Aadhar card, PAN card, Voter’s ID card, driving license

● Address Proof: Electricity bill, passport, Aadhar card, Voter’s ID card

● Income Proof: Last three months salary slips, Form 16, Balance Sheet, P&L Account and last six months bank statement

● A duly filled application form with your signature.

● Passport-size photographs

● As a bank or financial institution employee, you also have to submit your employee ID card.


In conclusion, a pre-approved personal loan is an excellent facility for people who have paid off their previous loan on time and without any security. Using the information mentioned above, you could also avail of a pre-approved personal loan from your lender with ease.

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