With the advent of the internet, our lives have become much easier and now, almost everything is ‘online’. Earlier, we used the internet just to send e-mails, then it progressed to looking up news from across the globe. Now, it is a tool to order clothes, watch movies, and keep tabs on financial transactions. You no longer need to go to the bank to transfer money or spend hours visiting numerous stores to shop for clothes, it all can be done from home; all you need is a good internet connection.

Offline loan or online loan - what should you apply for

In fact, you can even apply for loans online these days, and the benefits offered are sometimes more than the ones you get offline. There are many people who still prefer the traditional way of banking and the reasons behind it are many. Many customers are not active internet users, which is more common amongst the older generation. Security is another factor that scares people away from internet banking, which is why applying for personal loans online has not been embraced by many customers.

However, when it comes to applying for loans online there is barely anything to worry about. The procedure is a little different in the cases of online and offline loan applications, but there are minimal differences in terms of processing time and fees. However, in terms of convenience, the internet is always a winner.

Online Loan Application

You can apply for no-credit check loans online in banks and NBFCs that have online banking and through lenders who have active company websites. By applying for one of these, you eliminate the need to travel away from the comforts of home.

The first thing you would need to do is fill up an online registration form, which is available on the website of the financial institution, and provide specific details.

You can do this at any time of the day and at any time of the year, regardless of whether the nearest outlet is open or not.

The processing time is usually faster when you apply for a loan over the internet. For example, payday loans get processed within few hours, resulting in your bank account being credited relatively faster.

Offline Loan Application

Most senior citizens usually don’t feel very secure processing their banking transactions online, which is why applying for loans the traditional way is more up their alley. And you can’t really blame them as there are so many stories of internet hacking and internet fraud on the news, seemingly every day. They prefer walking up to the bank and doing everything on pen and paper than doing it online.

In the end, the process chosen completely depends on what the borrower wants, what matters is whether you get the loan that you are need.

However, if you are still confused as what you should apply for, here is the head-to-head comparison of online loan and offline loans.

Time: The process involves travelling to the bank or NBFC and going through a lot of paperwork before applying for the loan, which can be a time consuming process. When applying online, time is not a thing to worry about. You can apply whenever it suits you.

Efficient Comparison of the Benefits Offered: Usually, when you go to any financier, you enquire about their loan schemes by asking about their personal loan interest rates and other such details. If you like what you hear, you are partially on board. However, it would be wise to visit other financial institutions to check what benefits they have in store and compare the two. When you apply for loans online, you get the advantage of making such comparisons easily as all the details are available online. Visiting different banks or NBFCs can be time consuming and hectic, but online you can just download their e-brochures and start comparing.

Faster Processing: Most financial institutions have to process thousands of loan applications every single day. When it is done manually, there is a chance of your application getting misplaced or sent to the bottom of the pile. In such a situation, the bank might take weeks to process your application, unless you follow up regularly. When you apply online, there is no room to lose track of your application. You will most likely get a call from the bank or NBFC within hours.

Thus, the benefits of applying for a loan online are many when compared to applying the traditional way. Applying online is ideal for people who have a very busy schedule and don’t have time for visits to the offices of various lenders.

However, it is really important that you know your financier before you share your personal details. This can be addressed by making sure you choose a reputable lender or financial institution.

Another pointer to keep in mind is credit score. Make sure your score is good before applying for a loan, whether online or offline, as it is a prominent factor that could affect the approval of your loan. In fact, a good credit score can go a long way when negotiating the terms of your loan, which include things like tenure and interest rates.