How can I check if I am pre-approved for a consumer durable loan and will this save time in the application process?
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Pre-approved consumer durable loans offer a quick and easy way to finance purchases. These loans are generally offered to existing customers by banks and non-banking financial companies (NBFCs) based on their credit profile. Here’s how to check your eligibility and why pre-approval can simplify the process.
Steps to check pre-approval
Online platforms: Many lenders allow customers to view pre-approved loan offers on their websites or mobile apps. Logging into your account or providing basic information such as your phone number or email address is usually sufficient.
Customer support: The lender’s customer service can confirm whether you have a pre-approved offer. This can be useful for those who prefer to speak to a representative.
Notifications: Banks and NBFCs often inform customers about pre-approved offers via SMS or email. These notifications can also highlight special terms during holidays or sales events.
Questions about stores: When purchasing from partner stores, you can ask the billing desk staff to check for pre-approved loan options. Retailers often have systems integrated with lenders for quick eligibility checks.
Benefits of Pre-Approved Loans
Time saving: Pre-approved loans streamline the process since lenders have already assessed your eligibility. Many loans are approved almost immediately, especially at the checkout counters.
Minimal documentation: Because lenders have your basic information, paperwork is usually minimal, often limited to proof of identity and address.
Customized offers: Pre-approved loans can offer benefits such as lower interest rates, higher loan amounts, or flexible repayment options, making them more attractive than standard loans.
Important considerations
View the conditions: Even if you are pre-approved, it is essential that you carefully review the loan terms, especially the interest rate and loan term, to ensure they suit your financial situation.
Impact on credit score: Checking your status before approval will not affect your credit score. However, going ahead with the loan application and disbursement will impact your credit history.
Pre-approved consumer durable loans are especially useful for purchasing essential items like appliances and electronics without delay. They simplify the financing process and allow you to make a purchase without worrying about immediate cash flow constraints. Whether you plan to upgrade your home or invest in better gadgets, checking for pre-approval before shopping can save time and effort.
Akash Bararia is head of sales finance at HDB Financial Services.
