When you are taking a personal loan there are many different things that you should consider before applying for the loan. You can apply for the loan through the online application and in person at the lending institutions.
Online loan and offline loan process provides you with offers and their application process is hassle free. There are simple requirements that the applicant should meet to be eligible for getting the loan processed. The traditional process involves manual work and difficult steps with long process timings.
Online Loan
The online process of loan is where the applicant applies for the loan through the online mode using the mobile application or the internet website. This process is done without visiting the branch office. This is not a traditional process where one seeks to get cash loans. The online loan is a digital process for getting the loan. The digital process for getting the loan is done through the phone and web site.
The applicant is prequalified for getting the loan. There are no multiple hard inquiries required for getting the loan. You can quickly do shopping for the loan searching for the best rate and terms & conditions.
Advantages & disadvantages of Online Loan
Advantages of online loan
- You can apply for the loan from anywhere you want without even visiting the branch.
- The loan process is fast quicker and the decision making process is easy
- The paperless loan process make the loan procedure efficient
- You can check the pre qualified loans, check the interest rates and proceed for going for the loans.
- The access is easy and goes perfect with the credit score
- You can check the different pre approved loans from the lenders and choose the best deal.
- Interest rates and fees are processed online
Disadvantages of online loan
- There is no face to face communication
- No clarity for the borrower as there is no physical contact and interaction
- Possibility of confusion remains at the borrower as there is no bargaining power and interaction
- There is a possibility of technical difficulties in the process of loan application
Know More: Top Personal loans in UAE
InPerson loan
InPerson loans are a kind of loans which are issued by the lending institutions which is a manual process. It is a traditional loan process where the applicant should physically visit the branch office and apply for the loan. This method is followed by many financial institutions, credit unions and other lenders who lend the loan.
In Spite of having the digital process many lending institutions and lenders prefer this method for issuing the loans. In this method there is physical presence of the borrower and the signatures are taken at the bank physically before issuing the loan. The borrower and lender will meet physically, discuss and ask questions with each other before proceeding with the loan application.
Advantages & disadvantages of In-person loans
Advantages of in-person loan
- Direct communication with the lender leads to more personal experience
- Possibility to ask questions, get clarification on the loans
- You can get access to quick help with the interactions
- Get detailed information about the loan products and get help from the right person
- Get staff help and also assistance from the staff so that the application forms are correctly filled out.
Disadvantages of in person loan
- The process is time consuming as there is a lot of time wasted in visiting and meetings in the process of loan application.
- The time frame of business operation is a limitation in processing the loan application.
- Slow application process and waiting time is longer compared to the online application
- Involves lot of paperwork processing
- Involves traveling time and lot of waiting time
Online Loan vs InPerson Loan : Understanding the Key Differences
| Online Loan | In Person Loan |
| This is a online process to get a loan | This is a offline process to get a loan |
| Provides pre approved loans | Provides loan approval manually at the bank |
| There are no hard inquiries | There are hard inquiries on the applicant |
| There is no direct communication involved | There is direct communication involved |
| There is no bargain possibility for getting the loan | Provides for bargain facility where the borrower can negotiate the interest rates and loan terms |
| Provides with no time waste as the loan application is online | Time gets wasted with physical visits to the branch |
| Quick, efficient and best as funds are credited the same day | Quick, efficient and best as funds are credited the same day |
| There is no need to identify and search lenders. Approval is done online and notified to the borrower | Need to look out for the best lender who provides you good interest rates |
Which loan should you choose online or in person loan?
Both the online loan or the in person loans are best as they have their own pros and cons. The borrower gets an online approval for the online loan. Whereas the in person loan the borrower needs to visit the lender, provide the necessary documents and get the loan approved. Having a personal discussion with the lender provides with chance for negotiating loan terms
Credit checks are done whether it is an online or offline loan application.
It is a personal choice whether you select the online loan or in person loan. If the borrower gets a good deal on an online loan they can choose the online loan. If the borrower gets a good deal on an offline loan they can choose the in person loan.
Takeaway
Online Loan and Inperson loan application both are processed by the lending institutions. These are different modes in which a borrower can get loans. Online loan processing is pre approved and secured, less time consuming and quick disbursement. In Person loan processing is manual and time consuming, interest rates can be negotiated. It is a personal choice whether you select online or in person loan depending on the best interest rate and loan terms you can select the best option.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
