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Should You Apply For A Personal Loan Online Or Offline?

    Personal loans come to your rescue when you’re short of money. Nowadays, they are so easily available and disbursed so fast that many people take personal loans often to meet expenses.

    Usually applying for a personal loan online is easier, but there are pros and cons to all methods – online application and applying at the bank or through an agent.

    Let’s see the differences between the two when choosing which method would be best for you.

    Online Personal Loan Application

    When you apply for a personal loan online, you are directly purchasing it from the bank. There are no middlemen involved, and therefore, there are no added costs for the bank, such as agent commission. For this reason, your personal loan is usually given at a slightly lower rate of interest. So, the total cost of your loan is lesser.

    With the online method, you can calculate different loan amounts and tenures using an EMI calculator. By doing this, you can see how much you will pay the bank if you take a loan for 1 year or for 5 years. If you choose a short tenure, then you will pay a very high EMI, but the interest you have to pay the bank is very less. But if you make your tenure long, then the EMI is lesser, but you’ll end up paying the bank a lot of money in interest.

    Online applications are usually very fast and if you are eligible, it is disbursed immediately by way of credit to your bank account. Also, another advantage is nowadays, some banks accept scanned documents online, or they will send someone to your address to collect it.

    Many banks offer this option where customers can select if they want a personal loan at the ATM. If you are already pre-approved, you can get the loan disbursed. If not, a bank representative will call you.

    These methods ensure that you can get a loan without ever setting foot into a bank. The disadvantage is you have to do everything yourself. So, if you are not very knowledgeable on loans, then it may not be a good idea to apply for it by yourself. Another con is that you need a reliable internet connection, which many people in India still don’t have. It is not safe to carry out bank transactions from public computers like in an Internet café.

    Offline Personal Loan Application

    There are three ways you can apply offline:

    • At the bank branch 

      - You can visit a branch of the bank from which you want to take a personal loan. You’ll need to fill out an application form and submit it along with all the documents required.
    • Through an agent

      – Banks have agents who sell personal loans. These agents are especially helpful If you need guidance. However, they are paid a commission, and this might have a small impact on your interest rate.

    Apart from these methods, if you search for personal loans online, you will get calls from them offering you a loan. They will send an agent to help you and collect your documents. The disadvantage of the offline method is that it takes more time to apply and get the loan disbursed. You have to submit physical documents.

    So, now that you know the benefits of both methods, you can choose one according to your needs.


    Before applying for a personal loan here know more about how to get qualified for a personal loan and calculate loan using personal loan calculator online


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