Got a Pre-Approved Personal Loan? Should you Take it? Personal Loan Blog - Tata Capital

Pre-Approved Personal Loans? Should you Go for it?

Feb 28, 2017

Every once in a while, you would have logged into your internet banking account and found that your bank is offering you a pre-approved personal loan. Or you might have received a call from your bank about the same. So should you take advantage of such options?

Let's try to understand what these loans are and whether they make sense or not?

Per-Approved Personal loans are regular personal loans that are offered to people, who are considered to be of low-risk category. This can be because of their high credit score, good repayment history and income stability.

There are several advantages of Pre-Approved Loans. Since it's the lender that is approaching you to give a loan, you have a sort of upper hand. You can even discuss and ask them to change certain conditions in your favor. In many cases, it's also possible to renegotiate the offered interest rates downwards. Then there is another benefit of faster processing of your application. Since the lender already considers you a good borrower and the loan is pre-approved, not much time is required for complete processing of application.

So with these advantages, should you take these loans if you get an opportunity to do so?

The basic question to ask here is that whether you need the funds or not. If not, then why should you even borrow? After all, it's you who has to pay interest on the loan.

But if you actually need the funds and were yourself thinking about taking a loan, then this can be like a godsend blessing for you. You can assess your needs critically and borrow the amount that you need, which can be even less than what the lender is willing to lend you.

So all in all, pre-approved loans have advantages. But loans in general should be taken when you need extra money for some specific purpose and not when you find good offers.