Online personal loan vs offline personal loan


Over the years, financial market has become extremely diverse to satisfy every individual’s need – big or small. Even though there are plenty of options available in the market, nothing matches the convenience and ease of availability of personal loan. Anyone struggling through financial crunch can apply instantly for an unsecured personal loan to bridge the financial gap.

But, as the technology is evolving, people are lean more towards the digital platform, while some are of the belief that traditional banking system is better than the online one. Thus, to clear the air, we’re putting a short comparison of online personal loan vs. offline personal loan, so that one doesn’t get confused with the options at the time of emergency.

Loan application:

To no doubt, technology has made things super easy including the banking sector as well. In order to get a personal loan, either online or offline, an applicant is required to submit an application form to the lender. However, in case of offline application, an applicant may need to make multiple visits to the bank; on the other hand, they can apply for an online loan conveniently from the comfort of their house or office.

Documentation process:

Documentation is a must in both the cases, but when compared online personal loan vs. offline personal loan paperwork formality, online process is comparatively easier. You don’t need to bring a copy of several documents. All you need to do is just scan and upload the KYC documents like PAN card and Voter or Aadhar card. You can call it a paperless process.

Fees and charges:

In offline loan processing, there are several charges incurred apart from the interest rate such as documentation charges, stamp duty, document collection charges, insurance, and agent’s commission (if any). While, there are no additional charges in online personal loan processing. In fact, the process is kept completely transparent and everything is mentioned clearly on the lender’s website.

Disbursement time:

Usually, it takes 2 to 3 working days to disburse the loan amount when you apply offline; whereas, online loan is disbursed within minutes of completing the loan application. Thus, it is clear that online loan processing is quicker than the offline application.


An applicant can compare several loan options online to zero down on a best deal. Although, this can be extremely hectic in case of offline loan comparison. This is because, in case of offline comparison, you’ll be required to walk-in to different lenders in order to get loan quotes; whereas, in online application, the same can be done at a mouse click.

Hence, when it comes to online personal loan vs offline personal loan, online loan is said to be a more convenient and hassle-free option. As technology has become much advanced, people can quickly avail financial aid through personal loan at times of emergency.