Are Your Pre-approved Loans Really Approved?

You must have received SMS’s from banks saying “Your pre-approved limit for debit card EMI-loan is Rs. 80,000. Avail and get free amazon voucher of Rs. 1000.” As exciting such offers may sound, pre-approved financial products or pre-qualified loans are not very uncommon today. Simply put, a pre-approved loan is an offer for a loan based on your credit worthiness. Banks provide such loans to potential borrowers, based on fulfillment of certain pre-determined terms and conditions. The loans can be either secured, such as home loans, auto loans, or unsecured, such as personal loans and credit card loans. Even before you are made an offer, the bank has already assessed your financial standing and ability to repay the loan based on any previous loan you may have taken or on your credit card management skills. If you have good financial credibility, you are eligible for such...