Offline vs Online Quick Loans: Which One to Choose?

Thanks to the rapid advancements in technology in the past decade, taking out a personal loan has become much easier and simpler today. The emergence of a whole new industry - the FinTech industry (which combines financial services and technology), has revolutionized the personal lending space by making a gamut of financial services more accessible to consumers. They provide personal loans with a simpler and more straightforward application process while also offering faster approvals and loan disbursals. This way, the bottlenecks associated with traditional banks, like excessive paperwork and slow approvals, are also eliminated. You can get a wide variety of loans at the click of a button and avail of them from the comfort of your home. However, even with so many advantages of quick loans online, few people like the old-school 'offline' way of availing quick and easy loans. In this article, we discuss how both methods fare. Read on:

1.Convenience

When it comes to convenience and ease of application, quick loans online are the clear winner. You can apply for an online personal loan from anywhere in a few clicks, as long as you have a strong internet connection on your device (usually a phone or laptop). You then just have to fill out an online application, which takes only a few minutes. You needn't step out of your house to do any of this. On the other hand, an offline personal loan requires you to visit your local bank and manually fill out an application form. Even getting a loan officer to talk to you may take time, depending on the number of people there already. And considering we're in the middle of a pandemic, stepping out should generally be avoided.

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2.Documentation

Availability of a quick loan online is the best option here as well. All online loans come with minimal documentation because you just need to upload scanned copies of your KYC forms. All in all, this will take 15-20 minutes at most. An offline loan, on the other hand, entails excessive and intensive paperwork. You will have to carry photocopies of all your documents and fill out several forms manually. This is already a very time-consuming and frustrating affair. Suppose, at the time of submitting your documents to the loan officer, you find out that you've missed something. In that case, your loan application will be delayed until you submit that particular form/document. So, even with documentation, online loans are the better choice.

3.Processing Time

Online personal loans have very short processing times, involving only an hour or two, because of quick approvals. Once you enter the relevant information on your application form, your lender will quickly tell you whether you're eligible for a loan on their platform or not. If you are, you'll also get to know your credit limit (the maximum amount you can borrow). All of this takes an hour or two at most. However, the processing time for an offline loan ranges from ten days to almost two weeks! Your bank will need this time to evaluate your credit profile and the documents that you've submitted. And, of course, your bank will be closed on the weekend – something you don't have to even worry about while applying for a quick loan online. So, even here, online loans emerge as a clear winner.

4.Personalized Service

Even with all the benefits associated with online loans, there's not much of a 'personalized service' that you get if you apply for one. Sure, there's a wide range of financial products that you can avail of online, including a quick personal loan. But since the entire application process is done online, there's no aspect of 'personalization' per se. However, if you visit a bank, a loan officer will assist you with your requirements. He will answer all questions you may have and clarify your doubts about the loan. He'll take you through all the bank's products and may even suggest a better loan product after understanding your requirements. So, this form of interaction/personalization does exist for offline loans.

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Wrap Up

As you can see in the above article, a quick loan online comes with its share of advantages, as does an offline loan. It may seem that availing of quick loans online is the way to go. However, if you prefer an old-school approach where you like visiting your bank and interacting with the staff, go for it. Just set your expectations accordingly. If you want to get a quick loan today, KreditBee is an option you can consider. Our entire loan application process is quick and completely online on the KreditBee mobile app, from profile creation to disbursal. You just need to download the app from Google Play, complete your profile, and relax. If you wish to learn more about our quick online loans, please write to us at [email protected].