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Tata Capital > Blog > Loan for Business > Offline Vs Online Business Loans – Which One is Better?

Loan for Business

Offline Vs Online Business Loans – Which One is Better?

Offline Vs Online Business Loans – Which One is Better?

Doing things "face to face" may seem like the right way to approach a business loan. But numerous technological advancements have made availing online business finance equally safe and convenient.

So, in the offline vs online business loan tussle, who takes the win? Read on to find out.

Key differences

• Processing time

You have to physically visit your chosen financial institution's branch and fill the application form when availing of business credit offline. It typically takes around 15-45 days to process the loan application form, including the documentation process.

Online loan application processing is comparatively faster, allowing borrowers to obtain the required funds within 3-4 working days. The speed advantage undoubtedly helps businesses secure funds during emergency needs. However, in both cases, loan processing time depends solely on the lender.

• Eligibility assessment

While the business loan eligibilitycriteria remain the same in any case, credit evaluation usually takes longer for offline loans. Why? Mainly because the process involves physically visiting the branch, where you have detailed discussions with a representative to determine the amount you are eligible for.

In contrast, most online lenders extend a loan eligibility calculator facility on their website, allowing prospective borrowers the convenience to check the loan amount they can avail from anywhere.

• Repayment terms

If taking the offline route, you can easily negotiate the loan terms with your desired finance company, especially if borrowing for the first time. This is because a "face-to-face" interaction lets you present the nuances of your funding needs in detail.

Online modes, on the other hand, usually have less scope for negotiation. But, certain digital lenders are already offering finance solutions at incredibly competitive rates owing to the increasing competition.

Besides, online borrowers can also use a business loan emi calculatorto evaluate how much capital they can raise from a specific lender. This makes it easier to compare lenders and find the best loan deal.  

Additional Read: Best Ways to Repay Your Business Loan Faster

• Personalisation

Both online and offline lenders are mostly concerned about your loan repayment capacity. And usually decide the business loan interest rates and terms to suit your special requirement. So, they readily offer multiple loan products, allowing borrowers to avail of custom-built credit facilities.

The better choice

Sceptics may belittle the efficiency of online finance options. Still, they are far more convenient to obtain and offer numerous advantages, including:

  • Quick turnaround time
  • Attractive business loan interest rate
  • Relaxed eligibility
  • Personalised offerings, etc.

Nonetheless, the choice depends entirely on how a loan product, whether online or offline, meets your specific business requirements. So, you can opt for a lending option most convenient for you. 

Additional Read: How to Choose the Right Business Loan for Your Startup

Are you a small business looking for funding? Apply for a Tata Capital business loan online and avail of the necessary funds without pledging any collateral/security. Get funds up to Rs. 75,00,000 swiftly, requiring minimal documentation.

Lastly, if you wish to figure out your potential EMIs with us, you can always rely on our business loan EMI calculatorand caulk out a suitable financial plan. Get in touch to know more!

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