The three dimensions of a personalised pre-approval offer
A personalised pre-approval has three dimensions that vary by borrower. The financial terms: amount, rate, and tenor — each determined by the borrower's specific eligibility factors, not by a standard product brochure. The amount is bounded by the TDSR (Total Debt Servicing Ratio) headroom calculation; the rate is determined by the credit score tier and the product type; the tenor is bounded by the product maximum and constrained to ensure the closing instalment does not fall after the borrower's expected retirement age (for salaried borrowers) or business vintage ceiling (for SMEs). The value proposition: why this product, why now, what specific aspect of the borrower's situation makes this the right offer at this moment. The call to action: what the borrower needs to do, what documents they need (minimal or none where the institution already has them), how long the offer is valid, and what happens next if they accept.
Ananya's pre-approval offer: the complete personalised offer card
Three years ago, you trusted us with your home loan. Since then, you've paid every single instalment on time — 36 months, zero misses. Your credit score has risen 68 points. Your property in Indiranagar has grown in value. And your income has increased by 18% in the last year.
Based on all of this, we've done the credit assessment already. You're pre-approved for an additional facility — no application form, no document chase, no uncertainty about the outcome.
This facility is secured against your existing home in Indiranagar — no additional collateral or mortgage is required. Your current home loan instalment of SGD42,800 continues unchanged. The SGD22,440 monthly instalment for this top-up will bring your total monthly commitment to SGD65,240 — comfortably within the range your income supports.
You can use this facility for anything: home renovation, children's education, a family occasion, or simply as a financial cushion. There are no restrictions on end use for a home loan top-up.
To accept this offer: simply reply "YES" to this message or tap the button below. We will call you within 24 hours to confirm the amount (you can take anywhere from SGD 50,000 up to SGD 168,000), share the repayment schedule, and arrange disbursement — typically within 5 working days of confirmation.
Documents we'll need (most we already have): latest 2 months' bank statements. That's it.
How the rate is set for each pre-approval
The interest rate in each pre-approval is not the standard product rate from the brochure — it is a risk-based rate determined by the borrower's credit score, product type, and the institution's current cost of funds. The Pre-Approval AI applies the institution's rate matrix at the time of the scan. For Ananya, with a credit bureau of 762 and a home loan top-up product: the base lending rate is 10.25%, plus a tenor premium of 0.25% for a 10-year tenor, minus a relationship discount of 0.00% (applied for borrowers with 30+ months of zero DPD). Final rate: 10.50%. This rate is locked for the offer validity period — Ananya will receive exactly 10.50% if she accepts before December 15, regardless of any rate changes the institution makes between now and then.
The rate lock is the element that makes a pre-approval a genuine commitment rather than an indication. An offer that says "rate may vary at disbursement" is not a pre-approval — it is a conditional expression of interest. The Pre-Approval Offer AI locks the rate at the offer generation date and the institution is committed to honour it for the validity period. This commitment is what earns the conversion premium that generic offers do not achieve.
What varies by borrower segment
| Segment | Offer amount basis | Rate basis | Key personalisation in message |
|---|---|---|---|
| HL borrower → HL top-up | TDSR (Total Debt Servicing Ratio) headroom × income · Capped at LTV 75% of current property value | credit bureau tier + HL top-up product rate + tenor premium | Property appreciation mentioned · 36-month repayment record cited · Renovation/education framing |
| SME → WC top-up | TDSR (Total Debt Servicing Ratio) headroom × business income · Capped at 40% of annual GST turnover | credit bureau tier + SME rate + GST performance premium/discount | GST revenue growth specifically cited · Business expansion framing · Stock or supplier payment use case |
| HL borrower → LAP | 60% of current property forced-sale value minus existing HL outstanding | LAP rate grid · LTV-based premium · credit bureau discount where applicable | Equity built message · Larger ticket opportunity · Business or personal framing |
| Salaried → personal loan | TDSR (Total Debt Servicing Ratio) headroom × salary · Maximum SGD10L · Minimum credit bureau 700 | Personal loan risk rate · credit bureau band determines rate · No collateral premium | credit bureau improvement highlighted · Maturity proximity mentioned (if <18M remaining) · Unsecured speed framing |
The offer that commits to a specific rate and amount for 45 days is the offer that converts — the one that says "terms may vary" is the one that gets filed away
The behavioural economics of a genuine pre-approval are different from a generic offer. When a borrower receives a letter that says "you are pre-approved for SGD16,80,000 at 10.50% — your instalment would be SGD22,440 — valid until December 15," they can make a decision. They can run the numbers. They can discuss with their spouse. They can say yes or no. When a borrower receives a letter that says "you may be eligible for a home loan top-up — rates starting from 10.25%" they have nothing to make a decision about — they would need to apply to find out what they would actually receive. The Pre-Approval Offer AI generates the commitment that enables the decision, because that is the only version of a pre-approval that actually converts.