You make an ATM transaction and are about to leave the kiosk when a message pops up on the screen – “You are eligible for a pre-approved personal loan. Do you want to avail it?” Some of you may take the opportunity, while others may not feel the need to. But everyone would surely have wondered at some point – what is this “pre-approved” personal loan?
Pre-approved loans are a promotional exercise by banks to increase the sales of their loan products. There are several possible reasons why you may be chosen as an eligible customer:
The positive side of pre-approved home loans is as listed below:
A sweet deal in the financial sector is especially never free of disadvantages. Here are some things you need to be wary of about pre-approved personal loans:
Just because the bank is offering you a loan does not mean that you should take it. Get into debt only if you are really in need of the money. If you are taking up the offer, ensure that you take the amount that you need and not the amount that the bank is willing to give. For example, if the bank is offering you Rs. 5 lakh for 5 years, but you need only Rs. 3 lakh that can be paid back in 3 years, go ahead and negotiate a better deal.