Facts About Pre-Approved Loans

February 13, 2018by Team CapitaWorld0

“Congratulations !!! You are eligible for 5 lakhs of pre-approved loan.”

Sounds familiar.

You must have received a similar type of SMS/Email messages many times in last few years. Are you confused, why you are getting such offers? The answer is, it is actually a promotional activity carried out by lenders to meet their sales targets.

Here is the list of reasons why pre-approved loans have become popular against lenders:

1. High credit score.
2. Good past repayment history.
3. Your income levels are sufficiently high.
4. Big ticket financial transactions on the higher side.
5. Maintaining high average bank balance in the bank account.

Eligible Products

Personal Loans, Home Loans, Car Loans, Gold Loans, Business Loans etc.


Usually, the list of required documents is much less as compared to regular loans. The financier may ask for below documents before giving final approval:

1. PAN card.
2. Identity proof.
3. Residence proof.
4. Income proof (Salary slips/ IT Returns ).
5. Six month updated bank statements/ Bank pass book.

Loan Approval Process

1. Submit required documents.
2. Document verification & Regular credit check by the lender.
3. Credit underwriting & sanctioning of the loan.
4. Loan disbursement.

Advantages of Pre Approved Loan

1. Get a loan at lower interest rates.
2. Reduced processing time of the loan.
3. Special discounts on EMI advantages, processing fee & other charges.

Disadvantages of Pre Approved Loan

1. Offer is valid for the limited time period.
2. Restriction over loan sanctioning limit.
3. Terms & conditions are trickier than regular loans.


The pre-approved loan offer is a great way to meet your financial needs. But remember that getting pre-approval loan offer doesn’t make financier legally bounded to extend the loan to given customer. They will do necessary credit checks before disbursing a loan.

From the customer point of view, the basic question is that whether he actually need the funds or not. After all, it’s you who is supposed to repay the loan with interest.

If you have any query related to loans, then you can get free consultation here.

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