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How do I choose between an offline and an online quick loan?

November 04, 2022 • 2316 views

When deciding between an offline and an online quick loan, it is essential to consider the differences between the two options. With an evolution in technology, how we borrow money has transformed, making online applications popular. However, traditional offline methods, like visiting a lender's branch, are still available. Go through this blog to get a comparison of online and offline Personal Loans.

What are Offline Quick Loans?

An offline quick loan is the traditional method of a loan application. In this scenario, the applicant visits the branch office and submits the paperwork to apply for a quick loan. Hard copies of each KYC document must be submitted, and it can take a long time for the lender to process these applications.

The personalized treatment received while meeting with a representative face-to-face is one of the most significant benefits. This is perfect for people who are not accustomed to the internet. The downside is that this method takes far more time than online loans. Furthermore, some people may find the amount of paperwork required for the application procedure to be unnerving.

What are Online Quick Loans?

Customers can apply for a quick loan online from any location and receive immediate access to a range of loan products. Individuals can save a great deal of time by applying online.

Online is the best option if you require instantaneous access to funding because it immediately disburses money. Customers can select a loan product using the online process rather than having to sit through a sales representative's pitch.

Also Read: Why is a Personal Loan One of the Best Short-Term Loans?

Offline vs Online Quick Loans: Which One to Choose?

Let's talk about the benefits and drawbacks of both online and offline loan application methods and which one is most appropriate for the new generation of digital consumers.

1. Accessibility

If you wish to apply for a Personal Loan offline, you must physically visit the bank or lender and submit the required documents along with some forms. Even after you do your initial web research, this still holds true.

On the other hand, if you apply for quick loans online, you can complete the entire application process online. You can digitally fill up the form and submit the necessary documentation. Your bank account will receive the funds through an internet transfer.

2. Processing Time

Processing times for online and offline applications differ significantly. Online loan applications provide a speedy response for loan approval. Your online application is authorized instantly with trustworthy NBFCs. Moreover, loan disbursal happens quite swiftly.

On the other hand, for an offline application, the documents must be submitted in person and reviewed before the loan application is approved. This implies that it will require more time than online processing. When you compare the two, you will see that choosing an online loan is considerably quicker and simpler.

3. Human Interaction

Online Personal Loans involve no physical interactions; all formalities are completed digitally. You can apply for online loans quickly at any time. However, there is no personal interaction with the lenders.

When applying for offline Personal Loans, you will speak to a person face-to-face. You will have a more personalized experience with offline Personal Loans because you can interact with the lender representatives. While this may not be the best option for digitally savvy millennials, it is convenient for many people.

4. Added Benefits

About online loans, there may be a lot of value-added services available, such as reports, discounts, promotions, etc. Along with being able to save money, you also have the chance to gain access to other perks.

You may observe that the same lender from which you obtained a loan in person offers many more advantages for their online Personal Loan. There might not be many extra features and value-added services available with an offline loan.

5. Risks

For offline loans, there is a risk of misleading information, inadequate data, and bias, especially when you contact an outside agent for a Personal Loan. The salesperson would attempt to sell you products that will benefit them. You do not have to rely on another individual for online loans.

On the official websites of lenders, you can easily compare loans, conduct all the necessary research on your own, and calculate EMIs using the Personal Loan EMI calculator. Everything is done much more efficiently with online loans.

6. Product Comparison

With online loans, you can compare several loan products at once using the data available on the company's website. This will assist you in choosing the best loan option for your needs.

For offline loans, however, this procedure is time-consuming. You must visit each lender's branch office and request the information there.

7. Documentation

The documentation needed for offline Personal Loans can be voluminous and overwhelming. Meanwhile, the documentation for online Personal Loans is minimal. A bare minimum set of required digital documents must be uploaded.

8. Security

Since most lenders adhere to the best standards for internet security, the personal information provided online is extremely secure. In the case of offline loans, there is a high risk of losing or even misplacing important documents.

Difference Between Online Personal loans and Offline Personal Loans

The following table shows a comparison of online and offline personal loans:

Parameters

Online Personal Loans

Offline Personal Loans

Convenience

You can do it from anywhere with just a click.

Requires you to visit the financial institution and fill out forms.

Interaction

Everything is done online so no human interaction

Personalized service is available.

Documentation

Minimal documentation

An intensive process involving filling out various forms

Processing Time

Quick and processed within hours.

The lengthy process takes 10-12 days based on customer profiles and documents.

Security

Highly secure process

Riskier as there is a chance of losing important paperwork.

 

How to Apply for Online Loans?

Here are the steps you need to apply for loans online via Poonawalla Fincorp:

Step 1: Click on the ‘Apply Now’ button and select the type of loan you want to avail.

Step 2: After selecting, fill out the application form with the required details.

Step 3: Click on the ‘Submit’ button.

If your application gets approved, the lender will deposit the funds into your chosen bank account.

To Conclude

When comparing an online and offline Personal Loan, each option offers distinct benefits suited to various needs. It is crucial to consider your preferences, priorities, and personal situation to determine which choice suits you best. However, if you plan to apply for an online loan, opt for it via Poonawalla Fincorp, as it provides loans at affordable interest rates.

Also Read: Need Money to Support Your Lifestyle? Here's a Personal Loan to Suit Your Needs

Frequently Asked Questions

  • What are the benefits of online quick loans?

Online loans offer several benefits, including 24/7 availability, minimal documentation requirements, and quick disbursal of funds.

  • What are the documents you have to submit while applying for online or offline loans?

The documents you have to submit when applying for either online or offline loans typically include:

  1. Identification Proof
  2. Address Proof
  3. Income Proof
  4. Employment proof
  5. Bank Statements
  6. Recent Photographs
  7. Additional documents as per lender requirements
  • Can I compare different loan options easily?

Comparing loan options is more convenient with online loans, as you can do it from the comfort of your home, whereas offline loans may require visiting multiple banks for comparison.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

We are a team of expert writers and editors passionate about providing our readers with authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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