Should I Take a Personal Loan Online or Offline?

Online versus Offline Personal Loan Application

Let's admit a fact that applying online has simplified our tasks and has a series of benefits associated with it. So, herein, we compare online and offline mode of application based on the different parameters:

Convenience- One of the first parameters that let you choose between the two is the convenience. It is obvious that with the online mode of a personal loan application, you don’t need to run to different banks, collect information, negotiate on the interest rate and other hassles.

With the online application, everything comes to you at the click of a button. You just have to enter the details, and all the information will be displayed in front of you. Sitting at home, you can compare different loan options; you can easily decide whether Tata Capital Personal Loan is better for you or Bajaj Finserv.

All the banking and Fintech websites are equipped with EMI calculators, which will help you easily check the EMIs and compare it with others. In fact, there are portals which will give comprehensive details about different banks and the interest rates offered by them. You can use this feature to decide which bank is going to be the best for you.

Processing Time- Another key parameter that you should take into account is the processing time. If you are looking for instant loan approval, switching to online personal loan application is the best move. Some of the banks and financial institutions offer instant personal loan approval; for example, you can get Tata Capital Personal loan processed in as less as 2-3 days while for some, it may take longer. In either of the case, going ahead with the online mode of application is going to help you access and avail the loan faster.

Time-Saving- Applying personal loan online makes life a lot easier. For example, you don’t really have to spend time running after different bank agents to get an offer and find out the details about the loan application. Nowadays, everything is available online. All you need to shortlist different banking options and see a comparison of the interest rates offered by them. Once approved, you will get the loan directly in your bank account.

Trust Factor- Well, this is something where offline mode takes the lead. Many people still want to meet the bank agent, speak to them and then go ahead with the loan application. This is because human interacts with human. The face-to-face interaction helps in building trust, and it may sometimes even help in getting a rebate on the interest rate.

Comparison of Online and offline mode of the personal loan application

It is easier, as one can easily compare different loan provider’s option and shortlist the one which best suits the need
This is a bit tougher as one has to physically visit every bank and then get the details , which again adds to a lot of paperwork
With online mode, you can easily scan and upload the document, so there is no need to manage the papers individually
Herein you will be required to have heaps of documents with you, collect them and then submit them. A lot of paperwork means a lot of trouble handling them
Processing Time
Although processing time for personal loan is less, but many banks offer instant loan approval which lets you avail the loan in few hours
Since physical verification of documentation is required, it may lead up to some extra time consumption which can impact the loan processing time.
Extra Charges
This is something where online mode takes the lead, since everything is done by the borrower, they don’t have to pay any extra charges
If you apply via agent, they may ask you for commission which can add up to the cost
Instant Information
Online mode of personal loan application makes it easy for you to shortlist, compare and apply
With offline line mode you need to spend days getting all the information which means more time consumption.
Data Security
With online mode, banks offer complete security of information. All the data is encrypted thus there is lesser or no probability of losing them
In case of offline mode of loan application, there is always a probability of losing the papers or papers going missing.

In a gist- With the rapid development on the internet and its wider usage, we expect to see the popularization of the online personal loan application. However, there is still a huge chunk of the nation which believes in offline mode of personal loan application. It will take time for them to accept and accommodate as per the latest development. The penchant for instant money access is one of the reasons people are switching to the online mode of a loan application, and we will soon see a rise in the number of such applications. 

In case you want to enjoy the ease of use, you can take help of someone trusted while applying for the loan online. However, it is recommended that you read all terms and conditions in the application before you submit the application.