Online and Offline Personal Loan: which is better?

by Finway FSC Empowering People Financially

Personal loans can see us through the times of financial crunch and help us take care of our financial problems, but when it comes to applying for personal loans, there’s always a debate between whether it is better to apply the loan application offline or online. While in the recent years, the popularity of online loan applications have grown, given the ease and accuracy they bring to the table, some people still prefer the traditional offline method because they prefer human interaction of computer forms. But whether you are taking personal loan against property or without any collateral, you must know the pros and cons of both the online and offline methods before you apply for the loan.

Application of loan

While online application can be applied at anytime from anywhere, to apply for the offline application, you’d have to visit the bank branch and wait your turn in line. Then you’ll have to manually fill the form before handing it over to the concerned person. The downside to all this is that you end up wasting a lot of hours in the process.

Getting documentation done

Applying for an online loan doesn’t require you to submit too many documents. When you apply online via a bank or a Non-Banking Financial Company (NBFC), you only have to submit the scanned copies of a few essential documents like Aadhaar Card, PAN Card, Address proof, and income proof.

But it your personal loan application for home loan in Delhi or for any other purpose is being filled by offline means, you’d have to go through a rigorous documentation process. What is cumbersome is having to carry all those documents and going to look for more in case they are asked for – not to mention you might end up losing a valuable document in the process.

Processing time

With online means, you can fill your loan application form within a few minutes and if your documents are found valid and your loan request is sensible, the loan amount is disbursed within 2 to 3 working days. In some cases, the loan can even be disbursed within 24 hours of applying – which makes online application very useful for people who are looking for a business loan in Delhi.

However, an offline application takes longer to be scrutinized as the evaluation process has to be handled manually.

The option to compare

While applying for an online personal loan, you can compare different lending institutions in terms of the tenure and interest loans they’re offering. It helps you choose the best loan from among a number of loans available online. The best thing is that it gives you a choice.

It’s not that you can’t compare the different offline loan offers, but the problem is that you’d have to visit every branch of the NBFC or bank that you’re looking at, to come at a conclusion. The problem is that you end up wasting a lot of precious time in the process.

Extra Charges

The great thing about online personal loans is that you don’t have to worry about and hidden extra charges. However, in case of offline personal loans, there might be hidden charges in the form of commission that is to be gives to the agents or service fees.

The technology keeps on evolving everyday and now that different NBFCs have began using AI in the process of loan disbursement is only making the process more efficient. In the coming future, people who are wary of online methods of dealing with money, would come around and accept them as the way forward. If technology is helping us reduce unnecessary effort and expenditure, why not take the opportunity and benefit from it. 

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Created on Jun 16th 2020 03:25. Viewed 233 times.

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