A personal loan can address any personal need, unlike commercial or business loans. Generally, personal Loans help incur household expenses such as education and medical bills, wedding expenses, travel costs, etc. The borrower may choose between two ways of applying for this loan: online or offline. Since applying for a personal loan online is much easier, many people consider this option.
Online Personal Loans in India Opportunities
Several banks and small finances in India offer attractive online small personal loans. Even the rural areas of India are aware of these facilities since digitization is rapidly spreading. Online instant loans have several advantages, including minimum documentation, easy EMI option, transparent charges, and a short disbursal time. However, there are some occasions when offline interventions are needed.
Here are five ways online personal loans are different from offline ones.
- Ease of Documentation: Since many banks are offering instant loans online, many people are choosing them. For instance, Clix Capital offers instant loans online for your individual needs with minimum documentation. The application procedure for instant personal loans online is more manageable with pre-approved personal loans. These loans are available through an overdraft issued on collateral such as a Fixed Deposit.
- Disbursal Time/Period of Loan Approval: Most online loans are instant loans, requiring only a few hours to get approved. While the offline procedure can take up a lot more time, to get an instant loan online, one only needs to upload their documents on an online portal where they get approved through automation. In the case of an offline loan application, the lender must manually check every document’s authentication. The online loan application process is comparatively less time-consuming than offline due to the intervention of automation.
- Choosing A Product: The online loan application process allows potential borrowers to compare and contrast various available loans easily and choose the best product that will suit their needs perfectly. Offline loans depend on the lender since they are responsible for informing a potential borrower about the available options. If the loan amount is huge, this might require physical verification and manual verifications to ensure safety and security.
- Charges Transparency: With the new opportunity to get an instant personal loan online, it is easier to learn about the charges. For example, Clix Capital’s website mentions all of the costs and interest rates. A potential borrower can quickly go through the fees with no extra hassle. While checking the charges is a click away, offline processes might cause further issues due to hidden charges. The borrower must have the proper knowledge to ask queries because if the lender accidentally skips any information, the costs will not be transparent.
- Convenience: The final and most attractive benefit of an instant personal loan online is convenience. It is one of the most convenient ways of getting a loan from home. The borrower does not need to travel to another place or submit the documents personally. Instead, they can apply for an instant personal loan by filling out their details on a portal.
Offline loans require a person to physically visit the lender or the broker to understand the loan procedure and applicable charges. In terms of convenience, online loans are always the winner. Despite many advantages, secured loans are difficult to apply online if mortgages and other collateral are involved. They need physical verification and thus require an offline process.