While checking her Bank statement, Sonia was delighted to read, “You have a Personal Loan offer for ₹ 2 Lakhs“. It was precisely the stroke of luck she needed, as she was planning an overseas vacation with her friends and required additional funds.
She contacted her Bank and requested the credit of the loan amount on account of the pre-approved offer surprisingly, the Bank asked for her documents and application to initiate the process.
In another instance, Mohit was offered a paperless, instant loan of ₹ 5 lakhs on behalf of his payment App; on pursuing the offer, he was asked to submit documents before obtaining the Loan.
Are these offers for real? What does the fine print say about these funding techniques? Let’s find out.
In today’s sales world, Data is the key, and targeting the appropriate audience is crucial for achieving a successful sale.
Financial institutions such as Banks and NBFC have extensive data on customers using their services: as submitting KYC details for opening a Bank account or securing credit has become mandatory.
Therefore, financers can easily reach out to customers via SMS, send emails and messages, or display the details of a Pre-approval on a mobile app screen.
Banks and NBFC also employ Tele callers to call customers for a pre-approved loan or display the message on the online banking platform.
A pre-approval for a Personal Loan is not randomly forwarded it is a system-generated offer. Leading Banks such as HDFC Bank, ICICI Bank, YES Bank, and AXIS Bank deliver offers to candidates holding a Bank Account and having the following qualifications:
After receiving the pre-approval offer, you can decide whether to accept it. Remember that a pre-approval is not a guarantee of funding but rather an indication that you are likely to be approved for a loan based on the information available at the time. Listed below are considerations for making a decision:
Do you need the funds at this time?
Receiving the funds without an objective is of no use. The financer has forwarded you the offer but accepting funds without any active need serves no purpose.
Do you have the capacity to afford the extra EMI?
How are you currently placed financially, will the repayment of the loan burden you? Use our EMI Calculator to determine your monthly instalment. Once the Bank disburses the amount, you must pay the EMI on time.
Are you eligible for the Loan?
The financer extends a pre-approved loan offer based on preliminary checks and a customer’s creditworthiness. On applying for the Loan, the Bank processes the request per the regular norms. It only accepts the application that meets the Eligibility Criteria. Check the terms on our link before applying.
Have you taken other credit recently?
Suppose you have received credit recently from other financers. In that case, the Lender can deny the request even if it is pre-approved. The CIBIL Score and history review should not reflect any delays or settlements. Rejection will always show in your history, so be sure before applying.
Offer on A financial App
Financial Apps are indirect sourcing platforms for some lenders the App redirects the loan offer to the financer advertising on the App. The financer further processes the request per individual norms, terms and conditions. So, applying through an App is not the best deal.
What are the advantages of a Pre-approved Personal loan?
On the other hand, a Pre-approval the Bank issues is with a check on the essential criteria. Furthering the Personal Loan has its benefits.
Here are the stages involved in getting a pre-approved personal loan:
Unsecured credit, such as a Personal Loan, is a good investment that helps to build a credit score speedily and inculcates discipline for the management of credit.
Before accepting a Pre-Approved Personal Loan, review other Lenders’ offerings for their terms. Finally, if the offer is approved once you have received the Loan, remember to pay the EMI on time.
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How Much EMI Can I Pay For My Personal Loan?