Applying for credit cards online is not something new and we all know that lots of banks are providing the facility via their internet sites. A brand new twist for this is the AIP facility launched just for credit cards, that has recently been introduced in India. It’s getting widely accepted and found to be a very helpful product for customers applying credit cards over the internet.

Though a lot of 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 armed with AIP facility, knowing regardless if you are eligible for the credit card or otherwise will be relatively simple.

What’s AIP?

AIP or Approval-in-Principle means an immediate approval for online programs. The data you have submitted on the web will be instantly assessed by the bank through the help of a 3rd party credit bureau, allowing 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 get a quick approval of their credit card application, subject to instant online verification and their individual eligibility.

Just how excellent it really is?

Online credit card applications if built with AIP aren’t just practical, but additionally very beneficial. In normal cases, once you apply for a credit card online, the request will probably be processed and soon somebody from the local branch gets in contact with you. On physical submission of the application form in the branch, you’ll have to wait to get the status revealed. With AIP on board, you will be informed upfront, whether you’re qualified or otherwise.

You can easily neglect those extended hours and weeks waiting for approval, and you also do not have to check the status of the application. The novelty factor certainly is the speed with which the result is produced. And, if your application gets rejected, you can test with some other banks with out wasting time or attempt what is needed for a smooth running.

How it operates?

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 immediately rerouted to a third party site- the site of a credit bureau where you have to enter your details to start confirmation.

In case you have effectively met the eligibility norms, you’ll receive an instant approval. The approval is made with the help of a net based real time engine which quickly cross checks the data produced with that of the bank’s plan rules. Concurrently, the customers’ credit score may also be done through credit agencies. The processed result will probably be communicated to the customer instantly.

Once you have got the AIP, you can get in contact with the bank to have the physical application form filled, combined with the required KYC documents and income proof. Issuance of credit cards will probably be initiated afterwards.

Things to not forget

AIP is to be considered as a primary level approval. It isn’t a guarantee that you will be given a credit card in the end. It’ll inform you your credit worthiness, subject to the availability of documents and physical verification clearance.

Usually, in case you have a good to excellent credit score and you have provided all the necessary information in the online space, you will not face any problems in getting the AIP. Nonetheless, if do not meet the credit standards, your application will probably be rejected. Or, in case, upon physical verification it is proven that the information reported by the customer on the portal is wrong, or because of some other factors, e.g. you can’t be traced or if perhaps your KYC is undesirable, the application can get rejected.

The service is now available for customers trying to get a credit card online and will probably be soon released at the branches and partnering retail outlets. The facility is additionally expected to be wide spread soon, as banks are seeing this as a means to reach out to a large customer portion.

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