Personal Loan Update: Nowadays, it’s common to receive calls and messages related to personal loans on mobile phones. These often feature attractive offers such as special personal loans, pre-approved loans, or exclusive car loans. People are lured with benefits like low interest rates, quick disbursal, and minimal documentation. When you need money, such offers seem even more appealing. But the question is, is it wise to accept such offers without thinking them through?
In reality, personal loans are a major source of income for banks and NBFCs (Non-Banking Financial Companies). They have higher interest rates compared to other loans, which is why they see more profit in them. This is why they try to reach as many people as possible through inexpensive channels like phone calls, messages, and WhatsApp. This reduces their costs and allows them to reach customers directly.
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Offers received in pre-approved personal loans
However, not every call or message needs to be fraudulent. Nevertheless, caution is extremely important. Pre-approved loan messages, in particular, quickly attract people. It seems as if the bank has already conducted a thorough check and approved the loan based on your profile. But the reality is slightly different.
In fact, pre-approved simply means that your credit profile meets the basic requirements. The interest rate, processing fees, and other loan terms are decided later. This information is often provided only after the customer shows interest in the offer. Therefore, the offer that seems easy at first glance is not as straightforward as it appears.
It’s also important to understand that personal loans are unsecured loans. This is why they are more expensive than other loans. The interest rate depends on the customer’s credit score, job or business profile, and the lending institution. A pre-approved loan may seem attractive at first glance, but sometimes taking a top-up on an existing loan or transferring a credit card balance can prove to be cheaper and more beneficial. If you are truly in need of money, you can consider taking out a loan.
But before that, it’s important to know which bank or NBFC is offering the loan and what the interest rate will be. Typically, personal loan interest rates can range from 11 to 18 percent. Taking out a high-interest loan is only advisable if the need for money is urgent. If you have time, you should definitely compare offers from different banks and NBFCs.
Experts advise against immediately accepting such loan offers. First, understand the terms and conditions thoroughly. Be sure to ask if there are any penalties for early repayment. Also, get clear information about processing fees and other charges. Often, these details are not disclosed initially, and the customer is forced to accept the terms later. Therefore, it is wise to accept a loan offer only after obtaining complete information.
Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
