Applying for credit cards online is not something new and we all know that many banks are offering the facility through their websites. A new twist to this is the AIP facility launched just for credit cards, which has been recently introduced in India. It is getting broadly accepted and found to be a really helpful product for customers applying credit cards online.
Though many banks have AIP facility for various loan and insurance products, an exclusive AIP for credit cards is one thing new to the Indian banking sector. If banks are equipped with AIP facility, knowing regardless if you are eligible for the credit card or not will probably be relatively easy.
What is AIP?
AIP or Approval-in-Principle simply means an instant approval for online applications. The data you have submitted on the web will be immediately examined by the bank through the help of a 3rd party credit agency, permitting you know your credit worthiness right away.
Standard Chartered Bank was the first one to come up with this facility in India, to ensure that their customers can avail a fast approval of their credit card application, subject to instant online verification and their individual eligibility.
How great it really is?
Online credit card applications if built with AIP are not just practical, but in addition very useful. In typical cases, once you make application for a credit card online, the request will likely be processed and soon somebody from the local branch will get in contact with you. On physical submission of the form in the branch, you will need to wait to get the status exposed. With AIP on board, you’ll be informed upfront, regardless if you are eligible or not.
You can forget those extended hours as well as weeks awaiting approval, and also you do not have to look at the status of your application. The novelty factor certainly is the speed with which the result is produced. And, if your application gets declined, you can test with some other banks without putting things off or attempt what is necessary for a smooth running.
How it works?
To avail AIP, all you need to do is, visit the bank’s site and drop an online credit card application request. You will be automatically redirected to a third party site- the site of a credit agency where you have to enter your details to start confirmation.
In case you have effectively met the qualifications norms, you will receive an instant approval. The approval is made with the help of a net based real-time engine that immediately cross checks the information produced with that of the bank’s policy rules. Simultaneously, the customers’ credit rating may also be done through credit bureaus. The processed result will likely be conveyed to the customer right away.
Once you have got the AIP, you may get in contact with the bank to have the physical form filled, along with the required KYC documents as well as income proof. Issuance of credit cards will likely be initiated thereafter.
Points to remember
AIP is to be considered as an initial level approval. It isn’t an assurance that you will be provided a credit card ultimately. It’ll let you know your credit worthiness, subject to the availability of documents as well as physical verification clearance.
Usually, if you have a good to excellent credit score as well as you have supplied all of the right information in the online space, you will not face any troubles in getting the AIP. Nevertheless, if don’t meet the credit standards, your application will likely be rejected. Or, in case, upon physical verification it is proven that the information reported by the customer on the portal is incorrect, or due to some other factors, e.g. you can’t be traced or if perhaps your KYC is undesirable, the application can get declined.
The service is currently available for customers applying for a credit card online as well as will likely be soon introduced at the branches as well as partnering retail outlets. The facility is additionally anticipated to be wide spread soon, as banks are viewing this as a means to reach out to a large customer segment.
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