For someone who has gone through the process of applying for a conventional loan, the ease with which quick instant loans become available acts as a welcome relief. A pre-approved loan is one of the most common forms of an instant loan that salaried and self-employed individuals can avail of. Lenders extend this personal loan offer to customers with high creditworthiness, indicating the trust between the two parties.
Given the multiple advantages of pre-approved personal loans, it is natural that customers find it an attractive proposition. Some significant benefits that you can accrue when you avail of this particular personal loan offer are –
Swift procedures –
Unlike a personal loan that takes days for approval and verification, lenders approve the pre-approved loan within a day of receiving the application. Since they already have all your information and only need to verify it as a precaution, the time taken is much shorter. Having been approved, lenders also do not waste time disbursing the amount to your account. This explains why this personal loan offer has acquired the reputation of “pre approved personal loan offers’ because they get disbursed within a few hours.
Lower rate of interest –
When you compare the interest rate of a pre-approved personal loan with that of other loan products, the difference becomes apparent. Approaching you with a pre-approved loan offer indicates that lenders value your strong creditworthiness and acknowledge your good credit history. As a result, they willingly agree to a lower rate of interest, taking it as part of the privilege being granted to you. On your part, it translates into a lower amount being added to the monthly installment and hence lower EMI.
Freedom of usage –
One of the most attractive advantages of pre-approved personal loans is the freedom they grant to the end user. This is in sharp contrast to other types of loan products, like home loans, car loans, or education loans, wherein the amount is to be spent for a specific purpose and cannot be channeled into other activities. In the case of other loans, lenders seek proof of the manner of spending of the loan amount and can levy a penalty if they find irregularities. With a pre-approved loan, you have the freedom to channel the funds in whichever direction is required because lenders do not impose restrictions on the usage.
Flexible repayment tenor –
Another perk of a pre-approved personal loan offer is that you can choose a repayment tenor that suits your current financial situation. Being confident of your ability to repay through your positive credit history, lenders grant you the leeway to choose the tenor at your convenience. Therefore, despite availing of a loan, the financial burden remains minimal, and you can continue with your savings and investments.
Eco-friendly and easy documentation –
Keeping in step with the times, lenders have rendered the process associated with a pre-approved personal loan offer eco-friendly. Because they pick possible recipients of this loan from the existing client pool, this drastically reduces the involvement of documentation. At the most, lenders might ask you to present the documents, which they return after verifying the information in their records. So, courtesy of the minimal use of paper, the process remains as eco-friendly as possible.
The absence of documentation also renders the process relatively straightforward, thus facilitating quick processing and disbursal.
Financial planning –
Receiving a call from the lender about quick instant loans is like a reminder to take stock of your finances. You may have paid the bills on time and must be maintaining a healthy balance in your savings account, which is why lenders chose you for the pre-approved personal loan offer. From your perspective, treat this as an opportunity to assess the current financial situation and figure out how to proceed.
If there is a gap in your financial spending or a task that has been pending for some time, the pre-approved personal loan offer could not have come at a better time. Use the funds to close a debt or carry out an expensive project that has been pending for a long time. This would further improve your credit standing and render you eligible for more attractive offers in the future.
Practice due diligence when applying for this personal loan offer because even the slightest discrepancy in the information can prove to be your undoing. Be prepared that lenders will check your bank statements, salary slips, identity, and address proof against their records before approving the loan. While accuracy will lead to quick approval, a mismatch could cause lenders to reject your application.
Read through the fine print to ensure that all major advantages of pre-approved personal loans benefit you as expected. Areas that require attention include interest rates and charges, both of which can impact your finances in the long run.