Personal loans have become a popular choice in today’s time. The reason is the ease with which banks and many online apps are providing these loans. With the entire process completed in just a few minutes, personal loans can now be availed online with minimal hassle.
In recent times, many banks and NBFCs (Non-Banking Financial Companies) have started offering personal loans at attractive interest rates. These loans are available both online and through banks. This raises the question: Where is it more beneficial to take a personal loan – online or from a bank? Let’s explore.
Online Personal Loan
Online personal loans are offered by many mobile apps, banks, and NBFCs through an online application process that you can complete from the comfort of your home. With features like eKYC and digital document verification, personal loan applications are approved quickly. This eliminates the need to visit a bank branch. Online personal loans are particularly popular among the younger generation.
Offline Personal Loan
Offline personal loans are offered by bank branches through the traditional application process, which requires you to visit the branch. In this method, KYC documents must be submitted as hard copies, and all necessary forms need to be filled out, making the process more time-consuming. However, one major advantage of an offline personal loan is the opportunity to interact with bank officials and receive personalized assistance.
Which is the Better Option?
Interest Rates: Online personal loans allow you to compare interest rates from different lenders, giving you the chance to negotiate and secure a lower rate. In contrast, interest rates for offline personal loans at bank branches depend on factors like your credit score, loan amount, and relationship with the bank. Generally, branch interest rates may be higher than those offered online.
Application Process: Online personal loans eliminate the need to visit a branch, as the entire process can be completed from home. On the other hand, the traditional offline method requires you to visit the nearest bank branch to complete the application process.
Time-Saving: Online personal loans are faster, with instant application approval and quick disbursal. In comparison, the offline process for personal loans takes more time due to manual procedures and approvals.
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