With the current conditions of economic distress, loans have become important for individuals to sail through the times while keeping up their family’s needs and their standards of living. Personal loans, especially, have become saviors for a lot of working class people. Now, there must be a lot of people who were earlier only dependent on credit cards, or the ones who haven’t taken a loan before. It becomes confusing to decide whether to opt for an online loan or an offline one. Here’s some help.

Accessibility of loans

In case of an offline personal loan, you will have to eventually visit the bank’s or lender’s office and submit some forms along with documentation. This applies even after you conduct your initial research online.

However, in case of an online personal loan, you can conduct the entire process from start to end on the internet. You can fill up your application form and submit documents digitally. The amount will be credited to your bank account via online transfer. Plus, you have multiple options readily available just a click away.

Documentation

The documentation process for any financial product is usually quite lengthy and no one’s favorite part of the deal. When you choose to buy a personal loan online, there will be a fixed and basic set of documents that you are required to scan and upload digitally along with your online application.

If you go for an offline personal loan, on the other hand, the documentation process can be much more tiresome and long-drawn. Plus, it includes taking out multiple copies.

Additional Read: Should You Apply for A Personal Loan Online or Offline?

Need a Personal Loan during Covid 19 Pandemic

Personal touch

An offline personal loan process will give you a personal touch in the form of proper interaction with the bank or company officials. While this may not be the best option for internet-savvy millennials, it is still a preference for some people.

For an online personal loan, you don’t need to find the time to meet someone. You can buy it at midnight if you wish to. There would be no personal interaction required, and you can use it as a quick solution when you are in need.

Added benefits

With an offline loan, there might not be a lot of added benefits and Value Added Services. You pay for what you buy.

You would notice that the same company or bank you bought an offline loan from, would have a lot of extra benefits for their online personal loan. There would be value added services such as reports, discounts, deals, etc. You can not only save money, but also enjoy some more benefits.

Additional Read: How to avail a personal loan without visiting a branch?

Time

When you apply for a personal loan offline, the process can take a few days easily. Documents need to be verified personally. If they’re inadequate, you might be called in again the next day and the process gets delayed by another whole day. This isn’t an ideal scenario in emergencies such as medical costs.

When you opt for a personal loan online, the entire process right from application to documentation to actual disbursal of the loan amount in your bank account could be over within an hour. It might even take minutes, depending on the lender and your application details.

Risks

With offline loans, especially when you approach an external agent for a personal loan, there is the risk of misinformation, inadequate information, and bias. The agent might try to push for products that benefit them. In case of an online loan, you don’t have to rely on another person. You conduct all the research yourself. You can easily compare loans and calculate EMIs on the official websites of lenders. You can do everything your way.

Conclusion

All factors considered, there isn’t much advantage left in opting for offline loans. This applies to all kinds of loans including personal loans. The most important factor in today’s fast moving world is time. An online personal loan can truly serve its purpose in an emergency, and save you from the rising personal loan interest rates of credit cards.

If you’re looking for an online personal loan right now, you can consider Tata Capital Unsecured Personal Loan, which offers a quick personal loan without collateral, an easy documentation process, and flexible repayment tenure. You can visit the Tata Capital website and check it out for yourself right away!

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