Online vs. traditional personal loans: Which application method is right for you? | Mint
Source: Live Mint
The application procedure for personal loans has changed enormously because of the growth of fintech and digital banking. Borrowers can choose from two approaches: either the traditional and offline process, or the online request for a loan. To help you decide which process is most appropriate for your borrowing style, let’s consider some of the advantages and disadvantages of each type of process.
Understanding the basics
1. Online personal loan application
An application for a personal loan online is made from a bank’s or a non-banking financial corporation’s website, mobile app or third-party lending platform. This is done electronically and generally without any human interaction, and includes everything from KYC to approval.
2. Traditional personal loan application
The traditional approach includes going to a physical bank branch, filling out paperwork, and submitting hard copies of your documents. Not only can you expect the possibility of returning multiple times in addition to face-to-face verification.
In conclusion, which is best will depend on how comfortable you are with technology, your need for speed, and your desire for personal contact. If you are tech-savvy and need quick funding, online loans can be the best choice for you. On the other hand, if you need a personal touch or are making a larger financial commitment, a bank branch may still be the best choice for you.
Disclaimer:Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
