What are the Differences Between Online Personal Loan and Offline Personal loans

Online Personal Loan

In today’s digital world, Personal Loans are now available online. You can go to a lending institution’s website and apply for these loans on their website. But some still prefer doing things the old-school way and would rather visit a bank or lending institution to do the same. 

These are two ways of getting a Personal Loan, but the timing and ease of availability differ between the two. Here are some major differences between online and offline Personal Loans:  

Criteria Personal Loan offline Personal Loan online
Documents Everything is done in person. The procedure can take a long time as all the hard copies of the documents have to be submitted. You then also have to wait longer for approval. All documents can be uploaded online instantly. You won’t have to wait as long for approval.
Information You must meet with the branch members at specific times to get information about various loans. You will also have to hear the member’s different sales pitches before deciding. You can find any information you need online on the website of the loan provider. This includes various Personal Loans, the rate of interest, tenure, foreclosure charges on Personal Loans, and more.
Security It is possible to accidentally lose a piece of paper when applying for an offline loan. The online system for a Personal Loan is transparent. Your documents are secure and cannot be viewed or accessed by anyone else.
Ease of access You will have to check the branch timings and set up a meeting accordingly. Most branches are only open till a certain time. You can access the website anytime and apply for as many loans as possible.
Costs Besides the paperwork, you also have to pay an additional fee to the agent as a commission. All costs are online, and there are no additional charges. Even foreclosure charges on a Personal Loan are paid online and with no hidden costs. 
Processing hours An offline Personal Loan can take days to process. This is because the financial institution members will review and submit your documents, after which they will go through a whole series of checks before it is approved. In the case of Personal Loans online, your loan is sanctioned within minutes. Many financial institutions have started using artificial intelligence (AI) as well for the same.
Urgent Funds If you urgently need funds, you will have to wait a while for them to be processed in person. In the case of online loans, you can get urgent funds instantly.
Extra benefits In an offline setting, you will not get any additional benefits on your loan. You can access various extra benefits when you sign up for a Personal Loan online.

Which One to Consider?

  • Personal online and offline loans are made to suit the convenience of different people. You should apply for an offline Personal Loan if you are not tech-savvy. You will also enjoy the one-on-one interaction with the financial institution personnel.
  • The best part about an online Personal Loan is that you can do it from the comfort of your home. All you need to do is access a financial institution’s website and apply for a loan there itself.
  • The best part about online Personal Loans is that you can check your eligibility without consulting anyone. 
  • With the increase in technology, more and more of the working sector is accessing Personal Loans online, which might lead to completely paperless loans in the future.


Online Personal Loans are trending due to ease of access, transparency, and instant approval. It is also a good option when you need urgent funds. Offline Personal Loans still have their charm, and some people just like to interact on a one-on-one basis with their financial partners. The loans are still the same with the same rate of interest, and the same repayment tenure.

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