Have you ever applied for a personal loan online? If not, it could be difficult for you to trust online mediums with your documents and information. However, with the growth of fintech, you can safely get a personal loan without stepping into a physical bank.
What is an Online Loan?
As the name suggests, an online loan is a loan that you apply for online. The eligibility of these online personal loans is generally more accessible than traditional loans.
Why Choose Instant Loan Online?
There are certain circumstances when it could be favourable to apply for a personal loan online instead of offline. They are:-
- If you are unsure about the eligible loan amount and tenure for yourself, apply for a private loan online with a prequalified application.
- If you don’t have an existing relationship with the bank, you may not get competitive interest rates. So if you want a small loan with an affordable interest rate, an online personal loan is a good alternative.
- It’s called instant loans for a reason. If your documents and other information are up to date, you can get your online personal loan disbursed on the same day.
- You have a chance to get an online unsecured loan even with a low credit score, as some online lenders rely on utility payment history to approve or disapprove the loans.
What is an In-person Loan?
In-person or offline loans are taken from a bank or financial union, where you can walk into their office to apply for the loan. In-person personal loans are available for both salaried and self-employed professionals. However, it’s not easy to meet the eligibility criteria for these personal loans.
Why Choose an In-person or Offline Loan?
It makes sense to get a personal loan from a brick-and-mortar lender in the following situations.
- If you are not comfortable submitting your essential information online, apply for an in-person private loan.
- Suppose you are confident that the bank will favour you with interest rate because of your strong financial association with it. In that case, you may apply for an unsecured loan from a bank or a financial institution.
- If you need to meet a loan officer personally to ask all your questions and get satisfying answers, in-person or offline personal loans are ideal for you.
- Most banks and financial institutions take time to review the loan application and approve the loan. So if you are not in a hurry, choose any physical bank to get a private loan.
What are the Pros & Cons of Applying for an Online Loan?
Applying for a personal loan online comes with various pros such as:-
- Streamlined application process
- Low or no processing fees
- Access to online loan calculator
- Prequalified process
- Faster approvals
But every coin has two sides to it. Here are some cons of applying for an online unsecured loan:-
- Higher interest rates than in-person loans.
- Possibility of falling prey to online lending scams.
- Insecurity of submitting personal information online.
What are the Pros & Cons of Applying for an In-person Loan?
The pros of applying for in-person loans are as follows:-
- Lower interest rates with a pre-existing financial association with the bank.
- Easy to ask “n number of questions”.
- Face-to-face relationship with the loan officer.
Also, check out these cons of applying for an offline or in-person loan.
- Longer approval time.
- Prequalification not available.
- Need to visit the branch in-person.
You can get a flexible personal loan online and in person as well. But it’s any day more convenient and easy to get an instant online loan. However, you can get a private loan in person if you are not comfortable with interacting online.
But remember, the world is leaning more and more towards digital technology with passing time. You won’t be able to dodge it for many days. So why not start now!