A personal loan is the most preferred loan from the people during liquidity needs. A personal loan is easy to get when you have satisfied eligibility criteria and documentation submitted. We frequently come across with some calls where you come to know that you are offering a pre-approved loan.
“ Contact our executives for a pre-approved loan”
“ Congratulations, your personal loan is approved. Contact us for quick loan disbursal”
These types of messages and calls you see frequently in your inbox. Is this right thing to opt for such loans?
What are pre-approved personal loans?
The pre-approved loan simply means that the particular person is qualified for the eligibility requirement for that particular loan amount. Some banks, NBFCs, and financial institutions they consider the transaction details and other financial conditions of the person, they qualify them for the pre-approved loan. They evaluate a prospective borrower based on the financial data such as business revenue, cash flow and the comfortability of the applicant whether they can pay the EMI or not.
However, a pre-approved loan doesn’t mean that the loan gets disbursed to the applicant account. Once the applicant agrees to accept the offer. The pre-approved loan is same as a general personal loan. The procedure followed for a personal loan and pre-approved personal loan are same. The document submission and other formalities are same for both, but the processing of applications will boost the game for pre-approved loan.
What to consider for pre-approved loans?
Pre-approved loans will not last long for the particular applicant. It’s a limited time period option given to the person to apply for the loan if they need.
Documentation Is Critical:
Like a personal loan, pre-approved loan also requires the same document for the processing of the application. Failing to submit the document in a predefined time may lead to canceling of the loan. The applicant must be cautious and clear with the documents required and submit within a given time frame otherwise loan processing will get delayed and some time may get canceled also.
There is no difference in paying the additional charges to the lender same as a personal loan for prepayment charges, application processing charges, and other charges.
However, the pre-approved loan will benefit you in some ways such as:
Best Interest Rate:
Bank and NBFCs know your capability, so they offer you the best competitive interest rate in the market available to you. Pre-approved loans come to you with attractive offers.
As banks and NBFCS knows your financial transaction details and your payment of utility bills and other. They no need to do an extra inquiry for approving of your loan. They just need the proper documents to submit. Compared to conventional personal loan pre-approved loans are processed quickly and the loan will disburse fast.
Chance For Negotiation:
Since applicants are not the one who approached the lender, the lender offered the opportunity to the borrower. So the borrower gets the opportunity to negotiate with the lender to get the possible interest rates.
Whatever be the process you choose for a loan, at the end of the day it’s you who needs to repay the loan. So before taking a loan, consider every option available to you. Consider the terms and conditions points before signing the final note.
If you still have any doubts or you unable to understand the financial terms you can take the assistance of our 365eloans.com financial executives at free of cost.