New Delhi, March 26 -- Personal loans are today a standard choice for anyone seeking instant access to funds in today's fast-paced financial world. Among the numerous terms, "pre-qualified" personal loans often come up, giving potential borrowers an initial sense of their loan worthiness. Here we will explain what it is and how it differs from other loan evaluations.

Pre-qualification is applied by lenders as an initial assessment to establish a borrower's eligibility for a loan. The borrower typically submits basic data at this point, such as income, employment, and existing debts. The lender gives a projection of the potential loan amount and terms the borrower might qualify for using this information. The key is that pre-qualification...