Pre-Approved Personal Loans: Small EMI, Big Trap? Uncover the Hidden Risks!

• Pre-approved personal loans offer quick access to funds but can be a trap due to seemingly small EMIs, leading to long-term debt.
• Deciding based solely on low EMI can make finances fragile; unexpected expenses or income drops can lead to missed payments and credit score damage.
• Using new pre-approved loans to pay off old debt (Debt Reset Trap) often increases tenure without solving underlying spending issues.
• Taking a personal loan can negatively impact eligibility and interest rates for future major loans like home or car loans, worsening your Debt to Income Ratio.
• Always question if the loan is a necessity or convenience, and carefully review the Key Fact Statement for total cost, prepayment charges, and hidden insurance.

Why It Matters: Pre-approved loans offer convenience but demand careful consideration to avoid long-term financial traps.