Pre-approved Personal Loan
Pre-approved personal loans are offers you can enjoy when you have promising credit scores and a track record of loan repayment. These offers mean you might be eligible to sanction a particular amount if you require financial aid.
Pre-approved loans are available generally only for existing customers. For new customers, pre-qualified offers may be given but are subject to change in case certain details about their profile indicates the same. However, the
process might be slightly different.
So, what are the eligibility criteria to get pre-approved for a personal loan, and what are the applicable charges? Let us find out.
Features of pre-approved personal loans
Collateral-free loans
Pre-approved loans are provided based on your creditworthiness and overall financial history. Hence, there is no requirement for collateral like jewellery, real estate property, or any other assets to avail of this
loan.
Lower interest rates
Since you have a pre-approved loan based on your credit history and trustworthy repayment capacity, you can avail of competitive interest rates, which can be considerably lower than usual personal loan rates, making
the deal much more affordable.
Minimal or no paperwork
If you are an existing customer with a pre-approved offer, your bank already has your details in their database, which eliminates the need for excessive paperwork. You can also avail of a loan without having to
submit any documents.
Least processing time
Since you are already eligible for the loan, the waiting period for approval is almost negligible. You can apply for pre-approved loans online and get your loan amount disbursed on the same day or even within minutes.
Flexibility in repayment
Pre-approved personal loans offer a repayment tenure ranging from 12 to 84 months, so you can choose the tenure that suits you best. However, it is important to know that longer tenures mean you pay higher interest
overall. You can pre-pay or part-pay your loan by paying applicable charges.
Eligibility criteria for a pre-approved loan
If you are an existing customer, you skip the initial eligibility checks since your bank already has your financial history. In some instances, you might be asked to submit additional documents for income and KYC
purposes.
If you are a new customer, a thorough CIBIL check ensures your creditworthiness. You also need to provide income proof, bank statements, and KYC documents for verification.
However, a loan pre-approval does not guarantee a loan. Your loan might face rejection if there are any errors in the documents submitted or your loan application form.
Benefits of a pre-approved personal loan
Pre-approved offers
You do not need to go through the entire application process since you already have access to a personal loan pre-approval online. You can instantly find out your eligible loan amount and take
up a loan if desired with a minimal application process.
One-step evaluation
All you need is your mobile number to check your pre-approved loan offer. You can get all the information regarding your eligibility with a simple OTP sent to your mobile number.
Immediate processing
Since pre-approved loans are offered after assessing your financial history, you can immediately get the approval of your loan. You can avail of your loan amount within hours, sometimes with
no documentation required whatsoever.
Flexible loan tenures
You can go for longer loan tenures based on your financial affordability. The tenures can range from 12 to 84 months, giving you enough time to plan your finances better.
No hidden charges
All charges for pre-approved loans are stated to you upfront, and you do not need to pay any add-on charges apart from the ones mentioned later in the process.
Charges for pre-approved loans
Rate of interest
The interest rate on an Axis Bank personal loan ranges from anywhere between 10.65% and a maximum of 22%, letting you enjoy some of the lowest personal loan interest rates available in the market.
Processing fees
A processing fee of 2% of the loan amount with added GST is charged after your loan approval process.
Documentation charges
Fees and Charges to avail a loan for Rs 20,00,000
| Type of Charges
| Charges |
|---|
| Repayment instruction / Instrument return charges | Rs 339/- per instance of dishonour of cheque /SI/ECS/NACH debit instruction + GST as applicable |
| Swap charges (Cheque/Instrument) | Rs 500/- per instance + GST as applicable |
| Penal Interest | @24% per annum i.e. 2% per month on the overdue instalment. |
| Duplicate statement issuance charges | Rs 250/- per instance per set + GST as applicable. |
| Duplicate Amortisation schedule issuance charges | Rs 250/- per instance per set + GST as applicable. |
| Credit Information Companies (CICs) Report Issuance Charges | Rs 50/- per instance per set + GST as applicable. |
| No Dues Certificate generation charges (Duplicate) | Rs50 per instance per set + GST as applicable. |
| Stamp Duty Charges | As per State Stamp Act |
| Part Payment / Pre-Payment Charges | 5% + GST (as applicable) For loans disbursed 4th October, 2023 onwards: Fee for more than 36 months, 2% fee is applicable otherwise 3% |
Bounce charges
If you fail to pay your monthly EMIs, a penalty fee is charged for each EMI that is missed.
Penal interest
If there are late payments on instalments, a penal interest rate of 24% per annum, which is 2% per month, is charged.
Prepayment charges
For loans disbursed after 4th October 2023, 5% plus GST is applicable for payments made within 36 months of loan disbursement,
and 2% plus GST is charged for payments after 36 months.
For full payments, a closure charge is applied, depending on the outstanding principal amount. However, for part-payments, the closure charge is calculated based on the amount being paid.
Mandate rejection charges
During a mandate, if your bank rejects it due to insufficient funds, a mismatch, a signature, or any other reason, mandate rejection charges are applicable and vary for different banks.
Pre-monthly instalment interest
A pre-monthly instalment interest is calculated from the day of the loan disbursement to the first EMI date and is charged depending on the disbursed loan amount.
