Think about a loan offer without applying for a loan? Does that sound strange? A pre-approved personal loan is exactly that, an offer from lending institutions such as a bank, or non-banking financial company (NBFC), that have estimated their eligibility based on their financial profile and credit rating.
Let’s focus on everything you need to know about this simple and easy loan option.
Understanding the concept
A pre-approved personal loan is a direct loan offered to a specific group of people who meet certain eligibility criteria set out by a lender. Typically, pre-approved personal loans are given to:
- Existing clients with good payment history.
- Individuals with reasonable credit scores (750+).
- Individuals with good incomes and banking history.
Whether the paperwork is limited or not, it is much easier than a normal loan. Generally, the offer is received by email, SMS, internet banking, or the lender’s mobile application.
How do pre-approved loans work?
Below is a brief summary of the process:
Note: Readers are advised to check the relevant bank’s website for the latest updates as interest rates, fees & charges are subjected to change.
In conclusion, proper borrowing begins with knowing what are your real finances and your EMIs you can afford. Read the fine print, always compare offers, and only take loans that you can pay back. Never trade good financial discipline for a financial shortcut.
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