Online vs. Offline Personal Loan – Which is Better?

Online vs. Offline Personal Loan – Which is Better? post thumbnail image

With most fronts taking the digital route in our lives, it’s a no-brainer to crack that applying for a personal loan while sitting on a couch is one of them. Gone are the days of physically visiting a bank, waiting in queue for the response, and following a cumbersome process to avail of an instant personal loan.

It’s no exaggeration to say that online personal loans have the edge over their offline counterparts. Firstly, most online loan application forms are designed to make it easy for the applicants to fill without any help while sitting at home. Also, compared to the offline, personal loan, an online personal loan approval process follows a less lengthy and hassle-free process. However, a segment of people still prefers opting for an offline, personal loan as they believe in face-to-face interaction.

Features of Online and Offline Personal Loans

Following are the features of online and offline personal loans.

BasisOnline Personal LoansOffline Personal Loans
EligibilityAge: 21-55 years monthly Income: minimum 18,000 & 15,000 INR (for metro & non-metro cities respectively)Must be a residing citizen of IndiaCredit score: 700+This data is subjective and can change depending on the lender. A personal loan eligibility check is essential before you proceed with the application.Age: 21-55 years monthly Income: minimum 18,000 & 15,000 INR (for metro & non-metro cities respectively)Must be a residing citizen of IndiaCredit score: 750+This data is subjective and can change depending on the lender.
AccessibilityYou can apply for an online personal loan from anywhere, anytime, and from any device.You have to book an appointment and visit the lender’s office. 
DocumentationMinimal documentation. You can scan the documents and upload them online.Paperwork can be a bit tiresome. You need to submit hard copies in person.
Interest RatesYou can actively look for lower interest rates. For example, if you have a good credit history, lenders will be inclined to offer pre-approved/pre-qualified loans at attractive interest rates.You have to talk to multiple lenders to gauge an idea.
Loan Application You do not need any help from a bank official to guide you. It takes less than 10 minutes to fill out a personal loan application online and submit the documents. It would help if you had a bank official present at the time of application. You can only apply for a loan during office hours.
Loan Processing Processing time is very short, less than 24 hours.It can take a week or more as documents have to be checked manually.
ConvenienceYou can apply at your convenience. Loan details and tracking can also be checked easily online.You have to be in contact with the bank throughout the process.

Pros of Opting for a Personal Loan Online

There are many ways an online personal loan is better, more seamless, and safer compared to its more traditional, offline counterpart.

Searching for your preferred online loan is more accessible as most lenders list the essential features in their pages dedicated to personal loans. Moreover, third-party sites provide an easy-to-understand tabular comparison between competing personal loan products. A personal loan eligibility check can also be done. 

You can check EMIs, interest rates, tenure available, the possibility of top-up loans, and compare bonuses, perks, and negatives for each before deciding on one that ticks the most boxes for you. Opting for online personal loans enables you to make a more informed decision from the comfort of your home. Next, you can check for your eligibility for one or more personal loans online with minimal information, a process that can take several days for traditional, physical lending organization outlets. Moreover, you can apply for your loan online and have a customer representative reach out to you for additional details.  

Lastly, all online personal loan products are backed by a 24-hour, seven days a week, customer care service that answers all your related queries. 

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Cons of opting for a Personal Loan Online

You should understand that the virtual space is unpredictable, and hence you should take proper precautions to safeguard your personal and financial information while opting for a personal loan. While most lending sites offer end-to-end encrypted websites for their loan products, it is crucial to understand the information you share. Additionally, some online personal loans may come with higher interest rates and shorter durations, two of which have the most significant implications on EMIs. Weigh in pros and cons for each product before you zero in on the product of your choice.

Pros of opting for a Personal Loan Offline

It will help if you visit the lender’s physical office when you opt for an offline, traditional personal loan. While the ordeal might be time-consuming, you interact directly with a bank representative who answers your queries on the spot, making problem-solving much easier. In addition, offline personal loans can sometimes offer lower processing costs and higher loan repayment duration. Lastly, traditional ways of data entry reduce the risk of data leaks or compromise.

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Cons of opting for a Personal Loan Offline

The biggest con for an offline, personal loan is that not all information is at your fingertips. To access them, you must physically make your way into each lender’s office, talk to a representative who will go through the features, and then either compare different products on the spot or back home. Furthermore, offline loans do not come with additional perks compared to online variants – the competitive online personal loan market ensures organizations constantly try to one-up each other with incentives, lower interest rates, or attractive top-up choices. Furthermore, you cannot check your loan eligibility beforehand for offline loans and instead have to apply for one and wait for the result to come back. Finally, for offline loans, you are solely dependent on bank representatives for information and run into the risk of getting influenced by highly targeted, aggressive, in-person marketing ploys.


It is vital to assess your present financial situation. Failure in loan repayment can affect your credit score, which would further affect future borrowings. With a personal loan online, you will find that budget planning becomes easy with the various tools offered by the platforms. With the help of the information discussed above, you would be able to make an informed choice regarding personal loans.

A variety of circumstances can force you to take out a personal loan. With shorter repayment tenures and attractive interest rates, personal loans can help plug in an emergency financial deficit should you face one. Choosing an online loan has multiple benefits associated with it – not only are all the necessary information available at your fingertips for you to consider, compare and select the one that fits your need, but the process is also much more straightforward and seamless. You are informed about interest rates and tenures from the lending organization’s site itself – you can then input that information in their EMI calculators to understand your monthly obligations. You can check your eligibility and maximum available loan amount without even applying for a personal loan, and more essentially, the loan application process takes less time to conclude, and your money is disbursed in much less time.

Why waste your time and energy in bank-hopping while trying to choose a personal loan when you can get the best offers, advantages, and processing speed with an online loan?

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