The festive season is when we need additional funds to purchase goods waiting for months on our shopping list. Often discounts and offers are available during the festive time for consumer goods, and people wish to buy almost everything on their wish list.
Banks offer good deals on financial products to eligible customers. A pre-approved personal loan is one of those products given to some customers with a good repayment track record. This loan is an unsecured borrowing option. You can use the pre-approved personal loan for any purpose that you may feel suitable. Let’s check out when a person would get a pre-approved personal loan offer from banks and whether these offers should be accepted.
Who gets pre-approved personal loan offers?
An excellent financial track record with an existing bank often plays a significant role in selecting people for pre-approved offers. One of the critical criteria is to maintain a higher credit score consistently over a period of time. Having a steady and regular repayment record for existing or past loans can further boost your strategy. Before extending a pre-approved loan, the lender may evaluate your repayment capacity, so your income level also plays an important role.
Adhil Shetty, CEO, Bank-bazaar.com, says, “A pre-approved personal loan offer is often given to customers with a good credit score. Your income and timely repayment history are important factors in your eligibility for pre-approved loan offers. These offers give you an easy way to access funds without having to wait too long. But while the loans are easily available to the right borrower, you must ensure timely repayment without delay or default.”
Advantages of pre-approved personal loan
You don’t have to wait for a loan approval when you have a pre-approved personal loan offer. The lender already knows your credit profile and has access to your KYC documents. A pre-approved loan is typically offered at an attractive interest rate compared to regular personal loans. Sometimes, the lender gives exclusive benefits like zero processing fees, zero prepayment charges, zero foreclosure charges, etc. Another advantage is that you don’t have to visit the bank’s branch to apply for the loan. You can easily apply for it online or via the mobile app.
Should you accept the loan?
It is advisable to accept such offers when you know how and where to use the funds. You should not borrow just for the sake of borrowing. You need to pay back the same with interest. If you have planned well and are already searching for a loan, a pre-approved loan can be a low-hanging fruit. Before accepting the loan, it is important to check whether the offered loan amount would be sufficient to serve your purpose. Also check the loan terms and conditions, interest rate, and other applicable charges.
Pre-approved loans are offered for a limited period only. Hence, do not delay in deciding. If you need the money and can comfortably repay it, accept the pre-approved personal loan offer if it comes with attractive interest rates and other benefits. Choose the appropriate repayment tenure and ensure you get the same deal you have been shown before accepting the pre-approved loan.
MADE FOR YOU
* A pre-approved loan is typically offered at a more attractive interest rate compared to regular personal loans
* These are offered for a limited period only. Hence, you must not delay in taking a decision
*Your income & timely repayment history are important factors in your eligibility for such offers
