Image Courtesy: Shutterstock
A significant change has been witnessed by the banking industry in recent times due to the advancement of technology. Many people now find it convenient to access financial products with technology rather than using the traditional process. Banks now provide completely paperless loans. Instead of opting for offline, now everyone prefers to opt for online personal loans.
However, that does not mean that the offline method of procuring personal loan is redundant. Many still prefer the old-school way of loan application by visiting the branch office of the bank.
Read below the merits and shortcomings of both the methods and choose the one most suitable for you:
- Convenience
When you apply for a personal loan offline, you will require visiting the branch office to apply. You might have to fix an appointment with the bank for a specific time. But when you apply for an online personal loan, it can be done from anywhere. It would help if you had a stable internet connection, and you can purchase it from any device. Be it a mobile phone, laptop or an I-pad.
—-Also read personal finance news and todays news headlines.—-
You can even use a personal loan calculator available on the bank’s websites to evaluate your individual needs.
- Documentation
The offline procedure can be full of hassles for you. Usually, it is a paperwork-intensive process to submit hard copies of your KYC documents at the branch office. The trouble may arise if the branch office is far from your house. You may not be able to deliver the documents on time and then have to go through the process again.
On the other hand, with online personal loan procurement, you can upload scanned copies of various KYC documents on the application portal. In this way, you will also get approval instantly.
- Processing Time
If you opt for offline, personal loans, the processing time for the loan is significantly higher. Because in this process, the banks need to verify the submitted documents and establish your credibility physically. However, once the documents are uploaded with online personal loans, they are processed within a few hours itself. And your eligibility is also established.
Many banks have started using Artificial Intelligence to make this process even quicker than before.
- Comparison of Products
For offline personal loan procurement, you might have to visit different banks’ various branch offices to ask for information. It will be a time taking process as well as confusing. But when you opt for an online personal loan, you can compare the multiple loan products simultaneously through the information available online. Moreover, you can use the personal loan calculator on the various websites and choose the bank most suitable for your financial planning.
- Charges
Generally, the charges provided on the bank’s websites are the only expenses you have to bear when you opt for an online personal loan. No extra charges are imposed during the loan process. But when you choose offline personal loan procurement, you may have to bear some additional costs. These expenses might involve the commissions for the agents.
- Security
With online personal loans, the data provided is highly secure as most banks follow best practices concerning online security. But with the offline procedure, the risk of losing crucial paperwork is imminent. Plus, there is a possibility that you may have to go through the entire process again. It will be a waste of your time and energy.
- Additional Benefits
When you opt for a personal loan offline, you might not get the same additional offers and benefits available for online applicants. Here, applying for a loan is your only benefit. Generally, banks provide special offers only on online products. These may save some of your money and allow you to enjoy the additional benefits of personal loans.
One thing to note is that there is no one-size-fits-all solution when it comes to personal loans. Although online personal loans are proliferating, you may be more comfortable with offline products. So, keep these above-mentioned pointers in your mind and select your mode of purchase. If you opt for online personal loan procurement, choose reliable banks like Axis Bank. You can use the personal loan calculator available on their website and select the plan that benefits you.