When taking out a loan, it can take a lot of work to know which ones you qualify for, how much you can borrow, and how fast loan approval in Singapore will be. Applying for a loan can impact your credit score, so it would be best to only apply if you are confident you can get approval. That said, the question you would probably have is, “How would I know if I will be accepted for a loan prior to submitting an application?”
This is where the importance of seeking pre-approval for your loan comes in. If a money lender pre-approved your loan, it essentially means that they will let you borrow the money, pending final checks, over agreed terms and at an agreed interest rate. To understand more, read on as this article discusses what having a pre-approved loan exactly means.
What a pre-approved loan offer means
If you are pre-approved for a loan, it basically means that the money lender is provisionally agreeing to lend you the money according to the preliminary details you give them. However, it does not mean that you are guaranteed to obtain the loan. The final approval of the loan will still be subject to a rigid credit check and other final inspections. There is also no assurance that you will be offered the same terms that the pre-approved loan stipulates since a change in circumstances might impact the interest rate.
When you are pre-approved for a loan, you will need to submit a formal application for the loan before you can receive the money. However, you are under no obligation to apply for a loan that you are pre-approved for if you do not desire to do so. But if you do decide to apply formally for the loan, you will be required to confirm the information you submitted before.
Some money lenders may also ask you to submit specific documents to support your loan application, such as payslips as proof of your employment status or income. The money lender will then conduct a rigid credit check and fraud checks before giving their final decision on your loan application. When all the details you give them are accurate, your application is likely to get approved. However, remember that it is still possible for your loan application to be declined despite getting pre-approved.
How to get a pre-approved loan
Many money lenders will allow you to check your eligibility for a loan or provide you with a free quote without impacting your credit score. From the details you give, they will then decide whether or not you should be offered a pre-approved loan. You will be required to tell the money lender how much you wish to borrow and for how long, so be sure to work out your budget and determine how much you are able to repay every month.
Some money lenders may ask what you intend to use the loan for, such as to meet a financial emergency, make home improvements, pay for a car, or something else. Aside from some details about the loan, you might also need to provide your personal information, such as the following:
- Date of birth
- Contact information like your mobile number or email address
- Status of employment
- Income and outgoings
After you submit all the required information, the money lender will perform a soft credit check to confirm your identity and know certain information about your financial status without marking your credit report. It should only take a couple of minutes to receive a decision back from the money lender. If they are satisfied with your application, the money lender may offer you a pre-approved loan.
Overall, a pre-approved loan offer is as simple as its name implies – it is the offer of money you get before getting approved for a loan. However, an important thing to keep in mind when dealing with a pre-approved loan offer is that it is not an absolute guarantee that you will be approved for the loan you are applying for. As such, it is necessary that you submit all the information and documents that the money lender requires if you desire to get actual loan approval.
Should you need instant cash loans with fast loan approval to meet an urgent financial need, Orange Credit is always here to help! We are a leading money lender in Singapore, offering a number of trusted and valuable easy cash loans for a variety of needs, such as personal loans, payday loans, business loans, foreigner loans, bridging loans, and debt consolidation loans. Do not hesitate to contact us today to learn more about how we can help you get approved for a reliable loan right away.