With the advent of digital technology, banking has become a step closer to each and every individual. The world we live in today is that of digital transactions, from the groceries we buy on mobile apps to paying the monthly rent to our landlords, all transactions can be done at the click of a button. According to the Times of India, the Government data states, that in the three years between FY19 and FY21, digital transactions grew nearly 90%, from 232,000 to over 430,000, with UPI primarily responsible. With banks now establishing state-of-the-art IT setups that enable banking anywhere and anytime, why would one refrain from online personal loans? Before anything else, let’s draw the differences between online personal loans and offline personal loans.
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| Factors | Offline Personal loan | Online personal loan |
|---|---|---|
| Convenience | To apply for a personal loan the conventional way, the applicant must personally visit the branch office and fill out the required forms. | The applicant can apply for a personal loan from anywhere and access various loan products instantly. |
| Physical Documentation | Some applicants can find it easy to apply offline with an immediate help available in-case of any doubts regarding documents to be submitted. | Physical documentation is not required for online personal loans. Instead, you can upload the required documents via the internet. |
| Comparison of Different options | It might be very difficult to compare various loans in an offline mode since it involves a lot of efforts. | The convenience of being able to be in the comfort of your own home and taking your time in comparing all the policies the bank has to offer is only available when you avail Online Personal Loans. |
| Processing time | Although you do get a more personalized experience in comparison to the online application process, the time taken to go to the bank, submit the documents physically and get the loan approved does get overwhelming for some people. | The online process offers you the advantage of applying for the loan at your leisure, submitting the documents online and instant approvals. To avoid any confusion, the user-friendly online portals include all instructions and the prerequisites with further explanations. And in case of any confusions, there is the option of reaching out to the bank online. |
| Sanction time | In times of emergencies, due to time constraints, it is not suitable to use the offline mode as the procedures take more time than the online process. | When in need of quick funds, an online application process provides instant funds as the funds are disbursed immediately with fewer complications. |
| Special Offers | A person applying for a personal loan offline may not receive the same offers and benefits as a person applying for the personal loan online. | There are many banks that offer only online products with special offers, this can save your money and give you additional benefits. |
As the world has been embracing the digital age, more and more people get to take advantage of online banking at their fingertips anytime and anywhere. Unlike the conventional belief of data sharing and security, personal loans can be availed via the internet with complete security as the banks of the current age use protocols that authenticate and encrypt data. As per the annual survey done by Home Credit India (financial firm) after the second wave of the COVID-19 pandemic, almost 40 percent of borrowers were willing to switch to digital platforms for taking loans. This is in addition to the 15 percent of customers who have already switched to online platforms from the offline methods of banking.
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Conclusion
Apart from the factors of convenience, documentation, comparison, processing time, sanction time and additional benefits, there are a few more benefits. The digital banking convenience also offers the advantage of easy access to information along with instant transactions. One can always know the status of the loan process at their beck and call. . It doesn’t demand one to be technologically savvy to avail quick personal loans. For instance, the Karnataka Bank offers user-friendly online portals to guide applicants step-by-step through each procedure and it has reported that 93.22% of their customer transactions are through Digital means in the last quarter. Thus, by leveraging the technological advancements of the era, one can apply and avail the fast personal loans safely with complete security and make their dreams come true.
