Suppose you skipped breakfast to reach the railway station in time and catch a train to your workplace. Upon reaching, you learn that your train is cancelled and there is no option but to wait for the next train. The next train is packed, but somehow, you manage to get in. You reach the office late, given that your entire day’s work has been delayed, causing more hassle.
Consider buying a car in such cases. It eliminates the dependency on public transportation for the commute. Furthermore, you can travel on your own time and have a comfortable journey. If you are worried about arranging the necessary finances, apply for a Car Loan, too. There are different types of Car Loans: New Car Loan, Used Car Loan, Loan against Car, and Balance Transfer Loans. Consider your financing requirements and apply for a suitable one.
Pre-Approved Car Loans are another type you can consider. Let us understand this concept better.
What are Pre-Approved Car Loans?
Typically, when you need finances, you approach a bank to apply for a Loan. The bank considers your eligibility to decide on Loan approval, amount, and applicable interest rates. Income and credit scores are the two most important factors the considers for approvals. When you are an existing bank customer, they are aware of where you stand concerning eligibility. Hence, the bank extends a Car Loan based on your established eligibility.
The bank extends such a Loan via SMS and email. Quick processing time and disbursement are the top advantages of opting for a Pre-Approved Car Loan. Note that the bank extends the Car Loan depending on a preliminary eligibility analysis. A Pre-Approved Loan does not guarantee approval and a fixed amount. Upon application, the bank extensively analyses your details and documents and extends a suitable Loan amount.
How to get Pre-Approved Loans?
As mentioned, banks only offer their existing customers Pre-Approved Car Loans. Generally, most banks consider the following aspects:
Savings Account balance
The bank checks your Savings Account balance. A decent balance indicates you possess a good repayment capacity. The bank extends a Loan offer, believing that you can repay it. Hence, try keeping up with a good balance.
Credit scores
Credibility is the most important factor the bank considers for a Loan approval. The bank establishes your credibility as a borrower based on your credit scores. Banks readily offer Pre-Approved Credit Cards and Loans when you possess a decent credit score. Therefore, work towards improving them.
Bank relationships
The bank considers your existing relationship with them. They could extend a Pre-Approved Car Loan to honour your long-standing relationship with them.
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