Are Online Loans Better than Visiting the Bank?


23 Mar 2021 | 6 min read

Personal loans are being offered online by a growing number of financial technology firms. However, whether you can take an online or in-personal loan depends on your preferences. Choose a conventional brick-and-mortar bank if you want a face-to-face experience. An online lender can make sense if you need fast funding and other modern conveniences. Regardless of your interests, the better lender is usually the one with the lowest interest rate. Often compare loan deals from different lenders to find the one that better suits your needs.

  • Online Personal Loans

Customers can now easily apply for online personal loans, thanks to the digital age. Customers may apply for a loan from anywhere and get access to a variety of loan products right away. Customers that are short on time will benefit greatly from the online application process. If you need immediate funds, going online is the best option since funds are disbursed immediately. Instead of listening to a bank official's sales pitch, customers can select a loan product of their choice using the online tool.

  • Offline Personal Loans

This is the standard method of obtaining a loan. To apply for a personal loan, the borrower must go to the branch office and fill out the requisite paperwork. All KYC documents must be submitted in hard copy, and processing these applications could take a long time. One of the most significant advantages of this method is the personalized service that can be provided when dealing with an official in person. This is perfect for those who aren't familiar with the internet. On the negative side, this process takes much longer than online loans. Furthermore, for certain people, the documentation required for the application process can be lengthy and daunting.

Comparison between Online Loans and Offline Loans


Online Loans

Offline Loans


The borrower may apply for a personal loan from any location and receive immediate access to a variety of loan options.

To apply for a personal loan the conventional way, the borrower must go to the branch office and fill out the requisite paperwork.


You only need to digitally upload the basic collection of necessary documents with the minimal documentation procedure.

For certain people, the documentation process involved in this application process can be very lengthy and daunting.

Procedure for Submitting an Application

The easiest way to go is to apply online because funds are disbursed automatically. It saves a lot of time and offers instant funds when you need them.

An offline application process is a customized service accessed through face-to-face interaction with a representative. This is perfect for those who aren't familiar with the internet.

Additional Advantages

Many banks offer exclusive deals on online goods only. This will help you save money while also allowing you to take advantage of potential personal loan benefits.

You do not get the same additional incentives and benefits if you apply for a personal loan offline as you would if you applied online.

The length of the application

When you apply for a loan online, you will obtain all relevant information about personal loan eligibility requirements, features, necessary documentation, charges, policies, and terms and conditions.

Even though the documents you send must be manually checked, the process of applying for a personal loan offline takes longer than applying for one online.

Advantages and Disadvantages of Online Loans and Offline Loans

Online Loans

Offline Loans


  • Pre-qualification is typically possible without impacting your credit score.
  • Faster loan approval and disbursement, with certain loans being approved and disbursed the same day.
  • Consumers can benefit from lower prices as a result of lower operating costs.



  • Having a prior relationship with the lender, will increase your chances of acceptance, lower your prices, and give you better terms.
  • Personalized face-to-face support to assist with the application and loan management processes.



  • Consumers must be comfortable sending forms and personal financial details with minimal personal contact in a completely online loan application and approval process.


  • There is usually no pre-qualification procedure that allows you to look at loan rates and conditions without affecting your credit score.
  • Customers may be paid extra to cover the costs of running physical locations.
  • It can take several days or longer for a loan to be approved and disbursed.


When it comes to best personal loans, there is no such thing as a one-size-fits-all solution. Although online personal loans are becoming more common, there are still many people who need offline services. Offline personal loans cannot equal the convenience of online personal loans. As a consequence, it is popular among urban working professionals. You can find various online platforms like, where you can easily apply for a personal loan in no time.

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