Online or Offline Personal Loans - Which Is The Best Alternative?

Posted by Rishank Rautela on December 12th, 2019

Personal loans are those financial artilleries that could help you out of any temporary financial difficulties. Personal banking has no standard solution. On one hand we have online personal loans done at a quick pace and there are those who prefer going for offline mode. So, the choice is yours whether you apply loan via online or offline mode. Before choosing, it is wise to have proper knowledge of both the loan processing options.

Online Personal Loan Vs Offline Personal Loan

Loan application

In the case of personal banking online, you can submit the loan application sitting at the comfort of your home or from your office, and you can do it any time after checking if you are eligible for the credit.

In case of offline mode, you need to visit the bank’s branch or the financial institute to fill the application during its official working hours. Also, there will be a bank official present to check the process and oversee your loan application.


When you go for an online personal bank loan, it involves minimal paperwork. You need to to upload the scanned documents such as identity proof, address proof, and income proof.

For an offline application, you need to visit the bank and submit all the necessary documents. After submission, it takes few days before the confirmation comes through. It is a paper-based process.

Loan Processing time

Under online facility, documents get uploaded within minutes. Some lenders are seeking the help of Artificial Intelligence to make this process faster.

In offline, personal bank loan processing time is significantly longer as the bank has to make physically verify the documents submitted before determining the trustworthiness of the applicant.


In the case of online personal loans facility, you can easily research about multiple loan offers of varied lenders. It helps in selecting the best loan offer.

If you wish to research personal loan offers of various banks in the case of offline, you need to make a visit to all banks and NBFCs to decide which is a time-consuming process.

Additional Fees

In online loan process, no additional fees get levied. Charges are clearly stated on the website of lenders. In offline loan processing, additional charges may be charged in the form of commission by agents.

As personal banking has become much advanced due to technology, people now find it more appropriate to access financial products and services with the help of technology instead of opting for a traditional approach. In the future, there is a larger probability that digital lending may take over traditional loan processing.

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Rishank Rautela

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Rishank Rautela
Joined: July 19th, 2019
Articles Posted: 4

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