Getting a loan can seem tedious, especially when you are facing urgent financial needs. In this case, a pre-approved personal loan is an excellent solution. Financial institutions offer this instant loan facility only to select individuals who are past customers or have a strong credit profile.
As the name suggests, a pre-approved personal loan is already approved. As such, there are numerous benefits that you can get when you choose this option. Read on to know the top 5 benefits of a pre-approved personal loan.
Instant Access to Funds
A significant advantage of a pre-approved personal loan is that it offers rapid access to funds. Since you have already met the eligibility criteria that the lender has set, this loan is approved and disbursed in less than a day.
Unlike other types of loans, you do not need to provide collateral for this type of loan, which speeds up processing. This makes obtaining a pre-approved personal loan a practical solution in situations where urgent financial support is essential.
You can use it to cover medical bills, capitalise on time-sensitive investment opportunities, and address other pressing financial situations. All you need to do is complete the application process, which takes just a click!
Competitive Interest Rates
Pre-approved personal loans typically come with more attractive interest rates than what you would get on a standard personal loan. This is primarily because of your strong financial standing and credit score.
Due to your strong creditworthiness, lenders see you as a safe borrower. Therefore, they do not hesitate to offer you more competitive interest rates. Additionally, when a lender approaches you with a pre-approved personal loan offer, it puts you in a favourable position to negotiate for better interest rates.
Compiling documents and uploading them for a personal loan application can be a time-consuming process. However, when dealing with pre-approved personal loans, this process becomes easier and simpler.
Since the financial institution has already evaluated your creditworthiness during the pre-approval stage, they request minimal documentation when you accept the offer. This basic requirement speeds up the process and offers funds with lightning-fast speed.
If you are a past customer, the lender may already have your documents on hand. In this case too, you will be required to submit minimal paperwork, if any.
Flexible Repayment Period
With a pre-approved personal loan offer, lenders provide the flexibility to choose a repayment period that suits your financial situation and personal preference. This allows you to assess your income and expenses and then decide on a manageable repayment period.
Typically, lenders offer repayment periods ranging from 12 months to 72 months.
Whether you decide to repay the loan over a longer period with lower EMIs or choose a shorter term to repay the loan faster, the choice is yours. Keep in mind that you will save more on interest when you choose a shorter tenor.
No Restriction on End-Use
Like other personal loans, a pre-approved personal loan also gives you the freedom to use the funds based on your needs. This loan comes with no limits on usage, which allows you to employ the funds for planned expenses as well as unforeseen financial emergencies.
Whether you need to make a down payment for your home, cover the medical expenses of your loved ones, invest in home renovation and repair, pay for the wedding expenses of your child or take an international vacation, a pre-approved personal loan can help you address all your financial needs.
As you can see, a pre-approved personal loan comes with a host of benefits. Since numerous lenders offer this instant loan facility, you must research and compare various options. Doing so allows you to choose an offer that best aligns with your requirements. In addition, make sure you use the EMI calculator to forecast your monthly instalments and plan repayment. This step allows you to take an informed step, preventing delays and defaults in the future.
For personal loans on favorable terms offered by top lenders, use the Bajaj Markets App. This one-stop digital platform provides a diverse range of financial products under one roof. To check your pre-approved personal loan offer, simply download the app on the Play Store or App Store.