Pre-Approved Loans: Convenient Cash or Costly Trap? Experts Warn on High Interest

• Banks offer pre-approved personal loans based on customer transaction history, credit score, and account balance, ensuring repayment confidence.
• These loans are attractive due to less documentation and instant fund availability, useful for emergencies like weddings or medical needs.
• For banks, it's a strategy to grow business with existing customers without seeking new ones.
• A major drawback is the high interest rates, which can increase financial burden if the loan isn't genuinely needed.
• Experts advise taking pre-approved loans only for genuine needs and with clear repayment capacity to avoid negative credit impact.

Why It Matters: Pre-approved loans offer quick cash but come with high interest; use only for genuine needs.