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Which Is The Best Option: Online Personal Loans or Offline Personal loans?

online personal loans - YeLo

In today’s scenario, if you are facing any financial emergency or temporary cash crunch, only a personal loan is the armament that holds the potential to immediately solve your problem. Personal loans can be applied online and offline, it purely depends on the individual how they want to get it processed. More and more people prefer to go for online loans whereas there are still many individuals who prefer offline mediums for loan processing as they prefer the personal touch and face-to-face interactions. But before choosing the online or offline mode, it’s better to understand their process flow,

  1. Loan Application Process

When you apply for the personal loan through online mode, you can easily fill the application form from anywhere at any time after verifying whether you meet loan criteria or not. 

But in offline mode, you have to physically visit the bank in specified working hours to fill the loan application form. And the concerned loan officer or representative needs to be there to facilitate your loan application. 

  • Documentation Requirement

In an online scenario, minimal documentation or paperwork is required. When you online apply for the personal loan, you need to upload scanned copies of the required documents such as identity card, PAN card, address proof, Aadhar card, income proof, and bank statements. The entire online loan application process is paperless.

Whereas, in the case of an offline personal loan application you need to submit the physical copies of all required documents by visiting the bank or NBFCs. And if you forget any document or mismatch found, then again, you need to revisit the bank. Once all documents are submitted, it takes many days for confirmation. Hence, the offline procedure is paper-intensive.

  • Processing Time

When you online applies for the personal loan, your uploaded documents are verified in just a few hours and quickly your eligibility can be assessed. Thus, you can instantly get loan approval. Today, some banks or NBFCs are using AI (artificial intelligence) methods for making the online processes smoother and faster.

In offline mode, the loan processing time is longer as it involves the physical verification of the documents submitted by the applicant to assess credibility.

  • Ease of Loan Comparisons

Online mode offers you the flexibility to make loan comparisons between multiple lenders and their loan offers. You have the quick availability of information in your hand about the loan offer, interest rates, tenures, etc. This helps you to make a smart choice and pick the best personal loan offer.

In offline mode, if you want to compare loan offers from multiple lenders, then you need to visit all banks and then only you’ll be able to make a decision. This process is very lengthy and time-consuming.

  • Application Processing Charges

When you apply for an online loan, all applicable charges are mentioned clearly on the lenders’ site. No additional charges will be imposed as it’s directly between you and the lender.

But in offline mode, some additional charges might be forced, which are either due to documentation, verification & processing charges or in the form of the agent’s commission.

Final Words

The use of technology in the banking sector concerning various financial products offered the utmost convenience to customers as they get everything served before them in the blink of an eye. The same applies here as online processing is not only quick and easy but also serve the actual purpose of urgency.

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