Having a contingency source of funds is necessary. A contingency fund helps meet unplanned expenses and sail through uncertain times. However, if you live on a pay-cheque-to-pay-cheque, you may not have a reliable contingency fund. In that case, you may face a challenge during financial emergencies. However, you can apply for a Personal Loan to get out of any financial fix.
You may have received SMSs or bank calls saying you are eligible for a pre-approved Personal Loans. Pre-Approved Personal Loans work like regular Loans. However, in the case of pre-approved Loans, the bank approaches you with the Loan proposal. Pre-Approved Personal Loans are often known as Instant Loan online as they are associated with quick processing and disbursal time.
Who is eligible for a pre-approved Personal Loan?
Generally, banks extend Pre-Approved Personal Loan offers to those with the following financial profile:
- An excellent credit score helps a bank establish your credibility as a borrower.
- Clean credit history impresses the bank more than a timely repayment history.
- A handsome and stable income assures the bank of your repayment capacity.
- Maintaining an account balance above the minimum requirement means you have reasonable control over your spending.
Benefits of Pre-Approved Personal Loans
Following are the top benefits Pre-Approved online Personal Loan:
- Attractive interest rates: Since the primary basis for extending a Pre-Approved Loan is your solid financial profile, the bank may offer an attractive interest rate. This makes your Loan repayment affordable.
- Minimal paperwork – Generally, Pre-Approved Personal Loans involve negligible to no paperwork. You need not fill out a lengthy Loan application form and submit many documents. You can complete the online Personal Loan process in no time.
- Quick disbursal – As the bank has established your credibility, your Loan gets approved and disbursed on the same day. This way, you can get the necessary funds without waiting several days.
Things to remember when applying for Pre-Approved Personal Loans
As tempting as the Pre-Approved Personal Loan offer may seem, you should not apply unless needed. You should also remember that there is no such thing as free lunches. You need to pay the interest liability associated with Loan repayment. You should read all Loan documents carefully.
Approach the customer representative in case of any queries or doubts. Sin the Loan agreement only when you are clear and confident. Also, compare all Loan offers. This helps in finding the best deal.