Benefits Of Online Personal Loan Over Traditional Loan

The Indian mindset is changing, and loans are no longer frowned upon. Millennials now embrace Personal Loans for various purposes such as travel, education, home renovation, and weddings. Financial institutions are recognizing this trend and offering instant online Personal Loans to cater to the aspirations of ambitious young Indians. While instant personal loans provide quick solutions for urgent financial needs, traditional personal loans follow a more conventional process. Studying the difference between the two options will help you decide based on your requirements. Let's explore these approaches to make a better choice.

What Is A Personal Loan?

Personal loans are unsecured loans that fund various personal needs without being tied to a specific expense. Whether it's travel, small business expenses, home renovation, or debt consolidation, you can use the money as you see fit. Unlike other loans, personal loans benefits include absence of collateral, making them accessible options for borrowing.

How Does Offline Personal Loan Work?

You need to visit a bank or financial institution for an offline personal loan. A representative will guide you through the process, answer your questions, and address any concerns. Then, after completing the required forms and submitting the necessary documentation for KYC purposes, the lender will review the application and disburse the approved loan amount to your bank account within a specified timeframe. The entire process may take some time, depending on document verification, loan processing, and the lender's policies.

How Does An Online Personal Loan Work?

You can conveniently explore personal loan options online, compare lender offerings, and upload required documents from home. The loan amount is disbursed to your account quickly, with some lenders providing funds within 24 to 36 hours based on eligibility.

Why Are Online Personal Loans Popular?

Online Personal Loans are gaining popularity due to the following reasons-

Time-Saving In Emergencies:

During urgent situations, personal loans are often needed promptly. Online loan applications save time by allowing you to determine eligibility, submit necessary documents, and complete the process from home, eliminating the need to visit lenders or stand in queues.

Simplified Documentation:

The online application system lets you scan and upload required documents directly, eliminating the need to carry originals or make photocopies. From filling out the application form to document submission, everything is done online, reducing hassles and minimizing the risk of damage or loss.

24/7 Service and Quick Approval:

With online applications, you can apply for a loan anytime, and most of the processing is automated. If your documents are in order and your credit score is good, approval can be received within days, with the sanctioned amount promptly disbursed to your bank account.

Convenient Tracking:

Online platforms provide easy access to loan-related information and allow you to track the status of your application without leaving your home. Visit the lender's website to monitor the progress of your loan.

Effortless Comparison:

Comparing loan options from different financial institutions can be overwhelming with traditional methods. However, online applications enable you to easily research and compare interest rates, processing fees, loan tenures, and eligibility criteria to find the best deal.

Conclusion:

Personal loans online are becoming increasingly popular due to their convenience and ease. However, offline products still cater to individuals who prefer traditional lending methods. Urban working professionals are particularly drawn to online loans, and lenders are expanding their reach across India. As the digital marketplace expands, online loans are expected to have a significant presence nationwide. Like other big names in the market, IIFL Finance is expanding its reach to allow people to get the best assistance in getting personal loans online with complete transparency and ease.