If you are a coveted customer of a lending institution, you might have received a message regarding an instant loan. Many customers do not realize that the offer pertains to a pre-approved personal loan, a promotional product that lenders offer for a short duration.

While a pre-approved echo most features of other loan products, it does differ in one aspect. Rather than the customer approaching the lender to seek finances, it is the lender who reaches out to the customers and invites them to borrow money. Through this offer, the lenders intend to provide an instant loan for salaried employees even before anyone asks for it. That explains why this loan has several benefits, such as minimal documentation and a short disbursal time.

Although the pre approved personal loan may seem attractive, you must take an overview of its features before making up your mind.

Unique features of a pre-approved personal loan

Some aspects that render this financial product unique are –

Collateral free – Lenders do not insist on collateral while providing you with this loan. This feature favours the customer because it implies that you have access to a substantial amount without the fear of putting a property/asset at stake. The fact that most customers treat this loan as a source of emergency funding renders its unsecured nature irrelevant. From the lender’s perspective, the need to ask for collateral stands negated due to the solid financial backing of the borrower.

Minimal paperwork – This feature also works well for both parties because it saves time and labour. Since lenders practice due diligence in checking your credit history before making an offer, they already have all the necessary records. Also, you will have submitted all the documents when opening an account, which the lender will have checked to meet the KYC guidelines. These factors render paperwork for pre-approved loans minimal and a formality you can skip.

Negotiable interest rate – All loan products entail a rate of interest, which the lenders levy as per the conditions of the offer, like amount, repayment tenor, and so on. What sets a pre-approved personal loan apart is that you can negotiate with the lender and lower the rate of interest on receiving the offer. سباق الخيل This would reduce the amount due as a monthly instalment and enable you to garner substantial savings in the long run. لعب لربح المال

Fast processing – Unlike other types of loans which require days and weeks to get approved, a pre-approved loan takes only a day. One of the reasons why lenders tout it as an instant loan for salaried employees is because you can look forward to receiving the funds on the same day*. العاب وجوائز مالية حقيقية All that lenders need to do is verify the information on your application form, and put the stamp of approval for releasing the funds.

Repayment tenor – After availing of a pre-approved personal loan, you can repay it within one year. If you are struggling financially, contact the lender and inform them to extend the tenor to two, three, or five years. Choose a duration that will allow you to repay the amount comfortably while meeting your regular expenses.

Working out the interest rate

Usually, the rate of interest that you pay on a pre-approved loan is lower than what you would pay on conventional loan products. However, in the absence of a benchmark, every lender sets a rate as per the organizational guidelines. Therefore, you can look forward to paying less interest as part of your monthly instalments. However, the actual figure might fluctuate from one lender to another.

In such a situation, comparison shopping is one of the most effective approaches you can implement. Prepare a list of interest rates offered by various lenders on a pre-approved personal loan, and weigh the pros and cons of each to identify which one suits you best.

Applying for a pre-approved personal loan

To avail of this option of an instant loan for salaried employees, you can apply online/offline. Before applying, take note of the following aspects –

• Attach copies of all the required documents with the application regardless of the mode;
• Go through the fine print to be aware of the terms, conditions, and processing fees that lenders levy;
• Keep track of the opening and closing date because lenders offer pre-approved loans only for a short duration and a limited number of customers;

Final thoughts

True though it is that lenders initiate the process of offering a pre-approved loan to select-few customers, you need to exercise caution at the time of acceptance. Do remember that you don’t need to accept. If you do not need this perfect instant loan for salaried employees, skip it and inform the lender of your intention.

 

For this particular loan, lenders scrutinize the information very carefully, meaning even the slightest discrepancy can cause your application to be rejected.

Also, take your time to choose the amount and tenor of repayment, as defaulting could attract a penalty. Ultimately, if you still find a pre-approved personal loan attractive, accept the lender’s offer and begin the process.

Read Also: How Debt Can Affect Your Life? The Complete Guide