Applying for a Personal Loan- Online vs Offline

Apply Personal Loan

Availing personal loans can help finance all the major events in your life in the shortfall of adequate financial resources. It can back your wedding plans, any medical crisis, or can be a good way to fund the education of your child. The reasons can be different for getting a personal loan, but everyone has to approach a lending institution to sanction this financial instrument. Nevertheless, the consumer lending driven industry has also witnessed vital shifts due to the progression in technology. In the hectic schedule, taking out extra time is almost hard. Therefore, folks find it more convincing to access the financial tools with the help of technical mechanisms, rather than using the conventional application process. You can scroll to the different lender’s website that offers a complete paperless work for online application. Though, the offline personal loan apply method is not fully in-existent.

Here are the differences in applying for personal loan online vs offline:

Convenience

In the digital age, loan applicants can opt for a personal loan online. from anywhere sitting at home or office. They can get access to various loan products, and details by simple clicks and taps. A customer not only can go for a personal loan apply at his convenient time but also save a lot of time. The online process turns out to be very swift and convenient.

The loan application in the conventional method requires a customer to take out an additional time to visit the lending institution. It might require the applicant to fix an appointment with the lender at a given time.

Documentation

Also Read: Non-Payment of Personal Loans.

In a personal loan apply method, the borrower is required to submit the KYC documents to the financial institution. The documentation part has to be carried in both the online and offline personal loans. In the case of the former procedure, the applicant has to upload the essential scanned KYC documents. In the latter method, the applicant needs to submit the soft copies of the required KYC documents physically.

Processing Time

If the applicant uploads the necessary documents in an online personal loan apply, then the same gets verified and processed within a few hours to determine the eligibility of the borrower. Some lenders also use Artificial Intelligence to make the process faster. When the borrower visits the branch personally, the lenders check all the physical documents carefully, and it takes some time to establish the credibility factor. This is indeed a significant step when it is carried physically.

Loan Comparison

A borrower can select the desired loan product by simultaneously comparing multiple loan information available online. There are indeed different websites where one can get information. The third-party financial websites also provide details about various personal loan products and draw a comparison among all off them. In the real landscape, the applicant has to visit numerous lenders to get all personal loan details personally, and it can consume a good amount of time in the whole process.

Also Read: Ways to Use of Personal Loan.

Additional Charges

In an online personal loan apply, the charges are mentioned in the lending institution website. This means that a borrower is not required to pay any additional charges during the loan process, because of the absence of a commission agent. The offline scenario of a personal loan application is very different. There might be some additional hidden charges that can be taken as a commission fee of an agent. Applicants must enquire all the details and charges if they are proceeding with an offline, personal loan application.

Additional Benefits

Many banks and financial institutions only provide special offers and discounts on online financial products. As a loan applicant, you might enjoy such a facility in an online personal loan. These are the additional benefits that an applicant might not get while applying for a personal loan offline.

Security

In terms of paper and documents security, the online medium provides a good facility because of the best practices involved by banks and lending institution. There is less risk of losing the vital paper on the way to visit the branch in person. In the case of offline, personal loans, there is an impending risk of losing the documents on the way or elsewhere in the branch itself.

Also Read: Never Do With A Personal Loan.

Now, comparing both online and offline mediums, it must be said that the former is better for the new-age digital customers who are computer savvy, and the latter is beneficial for the aging population who finds it a little better to deal with the offline procedure. In the rapidly expanding lifestyle, there is still a section that prefers offline products. Also, the online medium has a wider coverage in the urban regions of the country. However, the internet is penetrating in the rural belts of the country. The number of smartphone users are also increasing with the advent of technology. Therefore, we can conclude that the future of online loan application in India will have a notable presence, due to the ever enhancing digital marketplace.