Whenever there is a need for money in a financial emergency, personal loans are among the most versatile financial options. These loans can help in any dire situation, such as a medical emergency, home renovation, travel, or anything else. With the introduction of digital banking, these personal loans are now available at your fingertips. However, it is always a doubtful question whether to apply for a personal loan online or in person. Each mechanism has its own set of pros and cons. That’s why it is essential to understand the differences before finalising the option. 

What are Online Personal Loans? 

The borrowers can apply for a personal loan and get the whole process done entirely through digital platforms like a mobile banking app, website, a fintech app like Rupee112, and others. You can complete the application process, submit documents, and receive funds without visiting any bank branch. 

What are In-Person Personal Loans? 

There are traditional personal loans in which the borrower has to visit a physical bank branch or any other financial institution to complete the loan application process. In the process, there are face-to-face interactions with representatives, and documents are submitted in person. 

Differences between Online and In-Person Personal Loans: 

There are multiple aspects in which the Online and In-Person personal loans differ: 

1. Application Process: 

In online loans, the application process is quite quick and hassle-free. You just need to open your laptop or mobile, fill out the form, upload the required documents, and get approval. At Rupee112, we offer a seamless digital platform for customers to easily apply for personal loans. On the other hand, offline loan processing requires you to visit a nearby financial institution and submit all the documents in a physical form. Though this process allows direct interaction with bank staff, it is more time-consuming. 

2.  Processing Speed: 

Online means speed, and the same is true for online personal loans. Lenders like us provide instant loan approval and disbursal, often within 24-48 hours. Contrary to this, offline personal loans follow a traditional process that takes more time due to manual verification of documents and in-person approval procedures. 

3.  Convenience: 

Undoubtedly, online personal loans offer high convenience vis-à-vis in-person personal loans. You can apply anytime, anywhere, using any digital device supporting the internet. It is highly beneficial for people with busy schedules or those residing in remote locations. 

4. Eligibility Criteria: 

You can check your personal loan eligibility by entering details such as income, age, and credit score on the lender’s website or app. For offline loans, the eligibility is checked manually, which takes more time. 

5.  Documentation: 

In an online mechanism, there is a paperless documentation process. The borrower is required to upload scanned copies of the required documents for the personal loan. It includes ID proof, income proof, and bank statements. 

In-person loans require physical submission of documents, which increases efforts and time. 

Which is a better option? 

We will recommend an online personal loan if: 

• You value speed and convenience 

• You want comfort and savvy with digital platforms 

• You require funds urgently 

It is good to go for offline loans if: 

• You prefer face-to-face interactions 

• You have complex queries that require detailed explanations 

• You want to negotiate terms in person