One can accomplish getting a loan in two ways. First, you can take the traditional approach, going into a branch of your bank or financial institute, talking to their representative, choosing the product you want to use, and applying for the loan. The other approach is more tech-savvy and super convenient. This approach is that of availing of a loan online. Here you research loan products on the website or your instant personal loan app to find out about authentic and trustworthy firms that offer such products. Then, you can compare the loan terms between different vendors and make an informed decision about which lender and loan to target.
- How offline loans work
After you have decided that you need a personal loan, you will need to approach a bank or financial institution. A representative will then introduce you to the personal loan process and explain all the features and benefits. Here, you can clarify any doubts you have and ask any additional questions. Next, you need to fill out certain forms and submit copies of the required documents for Know Your Customer (KYC) purposes. Your application will then be accepted after the lender has checked that all the necessary documents have been submitted; should there be any missing documents, you will have to acquire hard copies and submit them.
After submitting all the necessary papers and furnishing the required information, they will scrutinize your application. Once your application is approved, your loan will be disbursed and appear in your bank account in a certain number of days. This procedure takes some time, based on the lender’s scrutiny, documentation needed, and loan processing time.
- How online loans work
Consumer lending has also seen an impact due to digitalization in developing nations like India. You can browse all available personal loan products at the click of a button from the comfort of your home or office. You can also compare the loan features of various personal loan app lenders and pick out the one that is best suited for your needs. Then, upload all the loan documents required. Since you must submit soft copies of the documents, you will need less time for submission (as opposed to hard copies that would require you to take printouts or xeroxes and present these in person or via courier). Once the documents are verified and authenticated, your account will disburse the loan amount. Depending on your eligibility, some lenders pay the loan amount within 24-36 hours.
- How offline and online loans are different
You can access online personal loans from anywhere if you have a laptop or smartphone and an internet connection. These products are available at your fingertips; you can check out the loan products and their features quickly and at any time on your smartphones and refer to them at leisure, taking your time to go through the details at your convenience. But, first, you need to download the application, and you are good to go.
On the other hand, you need to visit a financial institution branch in person for offline, personal loans. Therefore, you may need to fix an appointment with the representative and plan your visit on the day and when the branch is open, that is, during working days at specific office hours.