Pre-approval of personal loans basically means that the bank is willing to provide a quick loan as long as you fulfil basic eligibility criteria. Sometimes banks offer pre-approved loans after analysing your financial credibility and credit record.
Banks offer pre-approved loans to customers to promote their loan products. Banks choose an eligible customer based on certain reasons such as:
Pre-approved loans can be beneficial owing to the following reasons:
If you decide to go ahead with a pre-approved loan, you should remember the following things:
No matter how tempting the pre-approved loan sounds, it is better to think twice before accepting the offer from any bank. In some cases, it may prove highly beneficial especially if you were intending to take a personal loan in the future. However, taking a loan without actually having the need for it could turn into a burden.