Online Loan Vs Bank Loan – Which is Better? Consider what’s more important to you: quickness and convenience or talking in person with a lender at a bank.
More financial technology companies are offering personal loans online. But whether an online or in-person/bank loan is better for you depends on what you value most.
Thus, there are two approaches to getting a loan
· One is the traditional approach wherein you walk into a bank or brick and mortar financial institute, talk to their representative, decide on the product that you want to use, and apply for the particular loan.
· The other approach, which is being increasingly used in today’s time, is more tech-savvy and super convenient. This approach is that of availing a loan online. Here, your research loan products on your laptop or phone, determine about authentic and trustworthy firms that provide such products, compare the loan terms among different vendors, and then make an informed decision about which lender and loan to focus on.
No matter your preference, the simplest choice of lender is typically the one that gives rock bottom rate of interest. Always compare offers from multiple lenders to get the loan that best fits your needs.
Merits and demerits of offline vs online loans
Let’s discuss the merits and demerits of both these loan modes and which one is best suited for the new digital age consumer.
Offline Loans / bank loans (traditional way)
This is the traditional way of applying for a loan. Here, the applicant must visit the branch office and fill out the required forms to use for a private loan. All the KYC documents must be submitted in hard copies, and therefore the company may take tons of your time to process these applications. One of the biggest merits of this process is the personalised service obtained when interacting with an official in person. This is ideal for individuals who are not internet savvy. On the downside, this process is significantly slower than online loans. Moreover, the documentation involved within the application process is often extensive and overwhelming for a few individuals.
The digital age has enabled customers to opt for online personal loans with significant ease. Here, customers can apply for a loan from anywhere and obtain instant access to varied loan products. Busy customers can save a lot of time through the online application process. If you are in need of instant funds, online mode is the best way to go as funds are disbursed immediately in this mode. The online method allows customers to settle on a loan product of their preference instead of listening to the sales pitch of a bank official.
Which One to Choose?
Online loan Vs bank loan – Which is Better? Let’s do a quick comparison of the two to seek out which one comes with a ton of benefits.
|ONLINE LOANS||OFFLINE LOANS|
|Convenience||Very convenient, can be applied anytime and anywhere.||It is time consuming as firstly you have to fix a meeting thereafter any other process takes place.|
|Documentation||Just the time required to upload the document on their portal||Paperwork-intensive process|
|Processing time||Once the documents are uploaded, they are processed within a few hours. Thus they are faster||The process time is significantly high as lenders need to physically verify the submitted documents.|
|Comparison with other products||Comparison can be done very easily through online platforms.||Comparison here is a very tedious process|
|Extra Charges||No additional charges, and if applied it is mentioned on their portal||Offline loans may have some additional charges as they might involve commissions for agents.|
|Security||Highly secured||Highly secured but there are chances that the documents can be misplaced.|
Online loans are easy to use than offline ones. Attributes like easy accessibility and instant approval promote these loan products among the youth. The market for such personal loans is increasing, and lenders are sweetening the pot by providing innovative products and facilities that are customized as per the dynamic needs of the young working professionals who seek such personal loans.
Looking at the popularity of smartphones, all lenders have launched their mobile applications in order to expand their presence and reach across all market segments.
With so many players coming to capture the market and satisfy the customer. Thus, it is a great time for the consumer to put his/her needs first, compare the available products, and avail a personal loan online that best caters his/her needs. In the future, it is likely that online loans will have a significant presence due to the expansion of the digital marketplace all over the country.