We all know how helpful personal loans can be. They can be used easily when you are financially challenged. Today, we can have a personal loan at the blink of an eye, which enables needy individuals to take approval at the fastest minute. His money can be used for meeting personal expenses. The process for personal loans have been furthered smoothed.
Of course we understand that a personal loan is easy and quick however, every loan type has its share of merits and demerits. A lot can vary when it involves online application and also when you physically visit the bank on your own or through an agent.
Let’s quickly underline the differences between the two methods to arrive at the best solution.
-
Online Personal Loan Application
When you apply for a personal loan online, its directly done through the official website, which means you’re making a straight buy. No as such third party is involved in the transaction, which eventually saves the extra costs related to commissions, overdue, etc. Because of this, personal loans are available at affordable rates of interest, which reduces the overall loan cost.
Using the online mode, you can calculate and compare different loans and tenures. Any popular EMI calculator can help your case. After this activity you can take a conclusive decision on how much will you pay the bank & for how long. A shorter tenure will cost you lower interest & higher EMI value, whereas a longer tenure will offer lower interest rate but more interest amount. So, when you keep your tenure long, the EMI is less but you accumulated interest is higher.
Online loan requests are much faster and if you’re application is approved, then money gets credited immediately. These days, financial institutions also accept scanned documents over web or agree to send an agent to collect documents at the required address.
Additionally, many banks offer the option to select a personal loan at the ATM locator. Once its approved, the loan gets easily disbursed. And if you’re already approved, then you can quickly get your loan approved.
Read More: How to apply for Online Personal Loan from Mobile App
This method works totally on the website, so the process is digitized. You get a personal loan without visiting the location. However, all the steps are to be followed by oneself. This could be a mind occupying task for individuals. So, in case you’re a novice and not so informed about loans, then taking the online mode is detrimental. Another reason online application has a lower success rate, due to bad connection and internet connectivity. Hence, a few people visit public internet cafes to handle all bank transactions.
-
Offline Personal Loan Application
3 ways to make an application offline:
- At the bank branch– Physically visit the bank branch from where you want to get a personal loan sanctioned. All you have to do is fill an application form with basic personal details. Then submit the relevant documents alongside.
- Through an agent – Banks have assigned agents who give out personal loans. However, they operate on commission, and which is why it has a minor impact on the interest rate.
- Besides if you choose online personal loans, then you will receive sufficient calls with potential offers. They send their guys to help & collect required papers.
Now that you know the ‘positives’ & ‘negatives’ of both the methods for you to take a thoughtful decision.