What is Pre-approved Personal Loan? Offers from Leading Lenders of India

A pre-approved personal loan is an instant fund support facility for the customers. The loan is a great help in times of emergencies as it gets disbursed within seconds. Another lucrative benefit that adds charm to pre-approved loans is that it doesn’t need any collateral or security. However, customers need to have a good credit score to be eligible for pre-approved personal loans.

Rate of Interest

Interest rates vary from lender to lender. It ranges between 10.75 per cent to 14 per cent per annum. You should check your lender about prevailing personal loan interest rates before availing of the pre-approved loan. 


Generally, banks and NBFCs use pre-approved loans as a promotional exercise to sell their financial products, serve loyal customers, and bring new prospective borrowers.

Reasons for offering pre-approved loan

  • The lender checks credit scores and offers pre-approved loans for people with a score above 750.

  • The lender may have gone through previous financial transaction history and found regular payments throughout

  • Desired balance between income and expenditure and a good creditworthiness

Features of Pre-approved Loans

Faster Loan Disbursal

Pre-approved loans can transfer to your bank account within seconds if you are an existing customer of the bank or NBFC. Even for other customers, the process takes very shorter time than traditional personal loan processing.

Minimum Documentation

You need minimum documentation for availing of these loans. Pre-approved loans are an easy, hassle-free process for capital funding.

Collateral Free

Instant loans do not require collaterals and security. Banks and NBFCs do all the checks about the financial history and upon satisfaction, offer a pre-approved loan to you.

Customized Loan Features

Banks and NBFCs offer pre-approved loans according to individual repayment capacity and credit score. 

Repayment Facility

Generally, instant loans are sanctioned for twelve months to sixty months. You can pay equated monthly installments as per agreed terms & conditions. The customer who has an existing account with the lender can choose an auto-debit option on the scheduled date of EMI payment.

Processing fees

Banks and NBFCs charge some additional fees pre and during the loan tenure. The charges include the secure fee, penal interest, outstation collection charges, EMI bounce charges, foreclosure charges, etc. Lenders decide fees according to their internal policies, and so charges vary from lender to lender.

Advantages of pre-approved Personal Loans

  • If you are eligible for pre-approved loans, it works as a shield against financial emergencies. The loan can be availed within a day to use it for personal purposes.

  • Banks and NBFCs go through an in-depth analysis of your financial history, check your credit score, and provide the most competitive personal loan interest rate so that you do not fall under the credit-risk or lender-risk category.

  • Choose loan tenure according to your financial capacity for repayment. Customers can choose loan tenure of one year to five years.

  • Lenders ask for minimum documents from borrowers who are not existing customers. For existing customers, mostly it does not need documents. Banks and NBFCs have your e-KYC/KYC with income details, so they do not require fresh documents from you.

  • With the digital lending market has become the prominent way to apply, approval, disbursal, and repayment of all types of loans, the complete process has become paperless. Borrowers can submit scanned copies of the documents and does not need hard copies for the processing & disbursal of the pre-approved loans.

  • A faster, smoother, efficient way to get funds instantly in your account

  • Borrowers or customers remain in the driver’s seat in the case of pre-approved loans. Banks and FIs approach you with loan offers, and you can negotiate the terms with the bank manager or relationship manager.

  • Banks and NBFCs also offer additional benefits such as EMI holidays for one to three months, slashed interest rates, waiving off processing charges, etc.


  • Existing bank customer with good credit score

  • Sufficient and stable source of income

  • Financial track record of repaying loans and debts on time.

How to Apply for Pre-approved Personal Loan?

  • Log in to your account and check whether you are eligible for pre-approved loans or not. You can contact the relationship manager or visit the branch to ask the branch manager.

  • After confirmation, fill in the application form and submit it on the lender’s website

  • Select loan tenure and amount out of the eligible loan amount

  • The lender will authenticate details, and after successful verification, transfer the pre-approved loan amount to your account.

  • If it is NBFC, you might need to furnish documents such as the previous three month’s salary slips, employee ID, bank account statements, KYC documents (PAN and Aadhar card).

List of leading Banks and NBFCs with prevailing Pre-approval Personal Loans


Loan Amount

Interest Rate

Processing Fees

Loan Tenure

State Bank of India

As per discretion of the bank

As per discretion of the bank


As per discretion of the bank

Personal Loan ICICI Bank(instant)

Up to twenty lakhs

11.25 percent onwards

1.25 percent of the loan amount plus GST

Up to 60 months

Personal Loan HDFC Bank (instant)

Up to twenty lakhs

10.75 percent onwards

2.25 percent of the loan amount, minimum 2,999 and maximum 25,000 INR

Up to 60 months

IDFC First Bank

One lakhs INR onwards

Starting from 10.75 percent


Up to 84 months

Aditya Birla Capital

Up to 15 lakhs INR

Starting from 14 percent

At the discretion of the lender

Up to 36 months

Concluding Thoughts 

Pre-approved loans are instant loans that lenders offer to their customers for brand recall and attracting new customers. Banks and NBFCs use the method for the promotion of their products and target people who are not in their network.

But do not go for the complete eligible loan amount. Plan your finances and avail only the required amount, considering the monthly financial liability of the extra loan amount. Maintain your credit score above 750, and financial transactions clear off defaults so that you receive pre-approved loan offers more often.