PRE-APPROVED LOAN

WHAT IS IT?

As the name suggests, the bank gives you approval for a personal loan in advance. Here, the customer doesn’t need apply for a loan. It is automatically approved by the bank. Usually if you need a personal loan, you have to contact the financial institution, provide documents and other details to get approval for the loan and then get it sanctioned. In case of a pre-approved loan, the financial institution completes the initial process based on your monthly income, repayment ability and good credit history.

WHEN IS IT USEFUL?

If you have a pre-approved loan, in case of an emergency, you can get a loan sanctioned faster, as the money gets credited to your bank account instantly.