September 26, 2022

Know About Quick Disbursal and Other Top Benefits of a Pre-approved Personal Loan

Difference Between Pre-approval and Pre-qualification of a Personal Loan

Difference Between Pre-approval and Pre-qualification of a Personal Loan

Nowadays, financial lenders offer a unique product to their long-standing customers: a pre-approved personal loan. What sets this loan product apart from the other packages is that the lenders take the first step in making the offer. Usually, lenders send a message/email informing you of having been selected for such an offer, mainly if you boast a good credit score and have a healthy financial record. So, when you receive this promotional offer, do not dismiss it immediately. Instead, take your time to comprehend its features, pros, and cons, and then decide if it is for you.  

Discussed as follows are some of the top benefits that render a pre-approved personal loan attractive –

Quick Disbursal of the Amount – This feature of the pre-approved personal loan stands out as the most beneficial from the customer’s perspective because it points towards the shortest waiting period. When you apply for one of the conventional loans, lenders take time to process your application and verify your documents. As a result, customers wait for weeks at a stretch to receive the loan amount, by which time the emergency might be over. 

Since the pre-approved personal loan comes sanctioned beforehand, lenders ensure minimal time lapse between applying and disbursal. Often customers receive the loan amount within a few hours of having met the requirements, thus justifying its reputation as an instant pre-approved loan. 

Documentation Is Just a Formality – Courtesy of strict government procedures, lenders ask customers to submit all the required documents while opening an account and availing of various financial products. These documents remain with the lender and are subject to cross-checking at regular intervals. While this might seem like a hassle at first, the procedure turns out to be a boon in disguise when you avail of a pre-approved personal loan. 

All that lenders need to do when processing your application is to pull out the relevant records from their archives and check the documents. They might request you to submit an additional copy or two as a formality, which completes the procedure. This minimizes the documentation requirements of a pre-approved personal loan and renders them nothing more than a formality. 

The Flexibility of Usage – Conventional loan offers come with stipulations on how the amount should be used, and even the slightest deviation could fetch a penalty. To this effect, lenders practice due diligence in confirming the appropriate usage of the loan amount and sometimes even use this exercise as a pretext to establish your honesty. 

On the other hand, pre-approved loans do not carry any conditions regarding the amount’s usability. Regardless of the financial emergency, you might face, this instant loan for salaried employees can be used to tide over the situation without causing a dent in your other investments. Therefore, avail of this facility to cater to the short-term monetary requirements ranging from medical bills to renovation projects, replacing equipment, or educational bills.

Favors the borrower People apply for loans only when they need a large sum of money to fulfill a significant financial obligation, like organizing a marriage, buying a house, or arranging for higher education. In such a situation, the lender enjoys the upper hand in terms of holding the discretion of approving/rejecting the loan application. Owing to being recipients, borrowers do not have much of a say in the matter and must accept the terms and conditions levied by the lender. 

Instant pre-approved loans represent a contradictory scenario, wherein the lenders invite their existing customers to avail of the offer. So, despite being the borrower, you remain in a dominant position and can negotiate with the lender. Rate of interest, repayment tenor and monthly installments are some points on which you can bargain with the lender and seek favorable options. On their part, lenders will likely agree with you and grant the concessions owing to verifying your financial credibility. 

Final Thoughts:

Though the lenders approach you with the offer of a pre-approved personal loan, do remember that the final decision rests with you. Despite the quick disbursal and the negotiating power, it is, after all, a loan that must be repaid in full. Therefore, if your financial situation does not warrant yet another loan, refusal comes as a viable alternative. Likewise, lenders also charge a specific fee for processing this loan, which is later adjusted from your account. 

Overall, if you require urgent liquid cash, this instant loan for salaried employees remains your best bet. So, as soon as lenders open the window for a pre-approved offer, check if you are eligible and apply for it without wasting even a day.