Should you accept a pre-approved personal loan offer?

The holiday season is when we need extra funds to buy products that have been sitting on our shopping list for months. Often discounts and offers are available during the holiday season for consumer goodsand people want to buy almost everything on their wish list.

Banks offer good deals on financial products to eligible customers. A pre-approved personal loan is one such product offered to select customers with a good repayment history. This loan is an unsecured borrowing option. You can use the pre-approved personal loan for any purpose you see fit. Let’s check when a person would receive a pre-approved personal loan offer from banks and whether these offers should be accepted.

Who receives pre-approved personal loan offers?

An excellent financial record with an existing bank often plays an important role in selecting people for pre-approved offers. One of the critical criteria is to maintain a consistently higher credit score over a period of time. Having a steady and regular repayment record for existing or past loans can further strengthen your strategy. Before extending a pre-approved loan, the lender may assess your ability to repay, so your income level also plays an important role.

Adhil Shetty, CEO of, says, “A pre-approved personal loan offer is often offered to customers with a good credit rating. Your income and timely repayment history are important factors in your eligibility for pre-approved loan offers. These offers allow you to easily access funds without having to wait too long. But although the loans are easily available to the right borrower, you need to ensure timely repayment without any delays or defaults. »

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Advantages of the pre-approved personal loan

You don’t have to wait for loan approval when you have a pre-approved personal loan offer. The lender already knows your credit profile and has access to your KYC documents. A pre-approved loan is usually offered at an attractive interest rate compared to regular personal loans. Sometimes the lender offers exclusive perks like zero processing fees, zero prepayment fees, zero foreclosure fees, etc. Another advantage is that you don’t have to go to the bank branch to apply for the loan. You can easily apply online or via the mobile app.

Should I accept the loan?

It is advisable to accept such offers when you know how and where to use the funds. You shouldn’t borrow just to borrow. You have to repay the same with interest. If you have planned well and are already in search of a loan, a pre-approved loan can be a low hanging fruit. Before accepting the loan, it is important to check whether the loan amount offered would be enough to serve your purpose. Also check the loan terms and conditions, interest rate and other applicable fees.

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Pre-approved loans are available for a limited time only. Therefore, do not delay in deciding. If you need the money and can comfortably pay it back, accept the pre-approved personal loan offer if it comes with attractive interest rates and other perks. Choose the appropriate repayment term and make sure you get the same offer you were presented with before accepting the pre-approved loan.


* A pre-approved loan is usually offered at a more attractive interest rate than regular personal loans

*These are offered for a limited time only. Therefore, you should not delay in making a decision

*Your income and timely repayment history are important factors in your eligibility for such offers

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