A Quick Guide to Pre-Approved Personal Loans - Kotak Bank

05 JUNE, 2020

Financial crisis is an uninvited guest in the lives of many. It can happen in anyone’s life, at any point in time. When in an urgent need of funds, personal loans make for a good resort. Be it a wedding, a dream vacation, or credit card debts, you can use personal loans for any purpose. Personal loans are the most popular option when you are in a pressing need for cash as there are no restrictions on its end usage. 

If you are a customer who has a good debt repayment history, you have an added advantage that comes along with the personal loans, a pre-approval! With pre-approved loans, the process of availing a loan becomes more hassle-free with minimum paperwork. You may have even received a message from your lender saying you are eligible for a pre-approved loan. The lender offers this loan to their customers with a good credit history. 

What is a Pre-Approved Personal Loan?

Banks offer pre-approved personal loan to their existing customers who have a good track record of repaying EMI’s and debts. If you are granted a pre-approval for a loan that means you’ve already crossed the initial approval process. It is similar to other types of loans except for the fact that the lenders will directly reach out to you to lend the loan. Pre-approved loans can be used for any purpose you want to use it for.

Eligibility Criteria

Most of the banks offer this facility only for their pre-existing customers. The other factors that can determine your eligibility to avail of this loan may include a good credit score, with an excellent track record of outstanding bills. The lenders may also prefer the customers who maintain an average monthly balance, with a stable income for giving this loan. 

The complete information regarding the eligibility for pre-approved loans can be easily accessed by logging in to your net banking account. 

Application Procedure

In most cases, application procedures for pre-approved loans can be done online. You can check the eligibility for a pre-approved loan by logging in to the bank’s website. You need to select the loan amount, tenure, and accept the terms and conditions of the loan. Apart from these, you need to furnish some necessary documents such as Pan Card, Salary Slip of the past three months, ID and residence proof to get the amount credited to your account.  

Benefits of pre-approved loan

There are numerous benefits that come along with pre-approved personal loans, which are as follows:-

  • Faster loan disbursal - As you are already a customer of the bank with a good credit history, the banks will offer a speedy loan disbursal.

  • Minimum paperwork - The lenders must be already having the essential documents needed for a loan. Hence, you will be getting the loan with minimum paperwork. 

  • Affordable Interest Rates - The lenders will provide you with some affordable interest rates on the pre-approved loans as you have an excellent proven credit history. 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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Frequently Asked Questions

What can a personal loan be used for?

Personal Loan can help you meet unexpected expenses such as wedding expenditure, school or college fees, dream vacations, home renovation projects or even for the purchase of consumer durables. 

 

Applying for a personal loan is a lot easier, quick, and convenient with Kotak Mahindra Bank.Click https://www.kotak.com/en/personal-banking/loans/personal-loan.html to apply for the same. 

 

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Do I need to provide any security or collateral to obtain a personal loan?

No, you do not have to provide any security or collateral to obtain a personal loan. Personal loan is a type of unsecured loan. This essentially means that it is not backed by the guarantee of collateral. You are not burdened by the need to generate collateral like gold, property or shares, as with other types of loans. As there is no security to assure loan repayment, the bank will focus on the income and financial stability of the applicant. 

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What are the benefits of taking a personal loan with Kotak?

There are several benefits of availing a personal loan from Kotak bank. Some of the most notable benefits include:

  • prepaymentInstant approval – The bank approves the loan at a quick rate and this makes the process much easier to serve different financial purposes.
  • Easy Documentation – It comes with minimal documentation requirements to help you save time and cater to your emergency financial needs without any hassle.
  • Versatile usage – The personal loan can be used to fulfil many purposes. From funding a dream wedding to serving a medical emergency, it can be used to serve different planned and unplanned financial needs.
  • Attractive interest rate – The personal loan is made more convenient with an attractive rate of interest starting at 10.75 p.a.
  • Part Prepayment facility – In case of excess funds/financial liquidity , you can reduce your loan burden with part prepayment

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What is the eligibility criteria to apply for a personal loan?

The eligibility to avail Personal loan is as follows :

  • All Indian residents who are employees of either MNCs, Public and Private limited companies with a minimum age of 21 years and maximum age of 58 years are eligible for a personal loan.
  • Other Personal loan eligibility criteria :
    • A net Salary of Rs.25,000/- per month for Corp Sal (Salary with Kotak) , A net Salary of Rs.30,000/- per month for Non-Corp Sal (Salary with other bank) , A net Salary of Rs.20,000/- per month for Kotak Employee.
    • Minimum educational qualification - Graduate
    • Years in city - Minimum 1 year
    • Total work experience - Minimum 1 years

You can apply for a personal loan by following the below steps:

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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What is the best way to apply for a personal loan?

You can apply for a personal loan by following the below steps:

 

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab.

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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