Pre-Approved Personal Loan: All You Need to Know
Obtaining a Personal Loan is no far-fetched affair today. No waiting in long queues in your bank branch! No filling of details in multiple application forms! If you need funds to finance your higher education, a wedding or a trip, reimburse a sudden loss of job, or for consolidation of debts, medical emergency, etc., Personal Loan is the answer.
It is no surprise if you have already received multiple Pre-Approved Personal Loan Offers from different banks in your email or as SMS. Seeing the same message pop-up on ATM kiosks after you’ve withdrawn money or when you have logged in to your net banking account is likely.
Have you ever wondered what a pre-approved Personal Loan is?
When a lender feels that a borrower is creditworthy (based on his/ her public or proprietary information) enough for a Personal Loan, and approaches the said potential customer guarantying him/ her to offer a loan, it is called as a Pre-Approved Personal Loan. Being pre-approved for a loan means you have already passed the initial approval process and are guaranteed to be granted a loan immediately if you apply.
You may have received a pre-approved Personal Loan because of the following reasons:
- You have a good credit score
- You have been paying your credit card bills on time
- You have always paid your loan EMI on time
- You are backed by a steady and stable income
- Banks bank upon your creditworthiness
- Your bank knows that you have saved enough in your savings account.
Do not get driven by the notion that as your Personal Loan is pre-approved, you do not require submitting documents and fulfill certain formalities. Sanctions for the credit are subject to successful verification of all relevant documents. The process of obtaining a pre-approved loan is almost similar to availing a regular loan. A hassle-free procedure is ascertained if you are already an existing customer with the bank. The processing time may be lower compared to other loans.
Getting your pre-approved personal loan
What are the formalities that you need to fulfill until the disbursement of the loan amount? Your bank may ask for submission of certain documents. Hence, if you have got a pre-approved offer and you are all geared up to apply for it, keep the following documents ready:
- Bank statements
- PAN card
- Identity proof
- Salary slips of last three months
- Residence proof
Advantages of a pre-approved Personal Loan
A pre-approved personal loan may come with certain advantages and disadvantages. Many a bank offers good discounts; ensure that your bank has offered a good discount too. Quicker loan processing, lower interest rate, increased bargaining power for lower interest rates and extended tenure, and more are a few advantages that you enjoy.
Disadvantages of a pre-approved Personal Loan
It is tempting to avail such offers. Before applying for one, do consider the cons so that you do not regret later. These loans are valid only for a certain period of time. You won’t be eligible if you apply after the offer period expires. Do read the terms and conditions and consider the fees and charges associated.
Opt for a pre-approved Personal Loan only if you genuinely need emergency funds. Ask a few questions to yourself before you apply for it. Do you really need a loan or is it an impulsive decision to cater to your wants? Does it come with extra benefits? Is the interest rate genuine? Are there any hidden charges or fees? Is the loan amount right for you?
Also Read: Aadhaar Card: One Card Various Benefits
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.