Online home loans have made accessing loans easier. Thus, you need not rush to a bank to get your loan sanctioned. Instead, you can use online portals to apply for a loan and submit your documents virtually. It is clear that online home loans have enhanced accessibility and also reduced the hassle. However, first-time borrowers generally face the dilemma of choosing between online and offline loans. Which is better?
Choosing a home loan depends on various factors, and you must know the following differences between an online and offline home loan before opting for one.
While you apply for home loan, you need to submit certain documents to sanction the loan. You can submit these documents virtually in the case of online loans. If you opt for an offline loan, you would have to visit your lender's office or the bank to submit your documents.
The process of verifying the submitted documents is also faster in the case of online loans. As a result of already being fed into the system, most of the documents get verified automatically. However, in offline loans, you have to submit the documents to an employee who in turn verifies them. Thus, the process taken to verify documents offline is slightly prolonged, and the loan takes a more extended period to be sanctioned.
Checking your Home Loan Eligibility
Before you apply for a loan, remember, every loan has specific eligibility criteria that you need to satisfy to have the loan sanctioned. If you opt for an online home loan, you would be able to check its eligibility criteria on the website. Most companies providing online loans in India also have a detailed list of their interest rates. Thus, you can quickly check for your eligibility, followed by going through the interest rates of each loan.
On the contrary, if you plan to apply for an offline loan, you have to physically visit the loan provider's office to know the eligibility criteria, current home loan interest rates, and the like.
Thus, one can conclude that online loans are generally more feasible than offline loans. Online loans can also be sanctioned faster than offline loans and are therefore preferred by most. However, the growing popularity of online loans in India does not mean they are replacing the importance and popularity of offline loans.
While on the one hand, online loans have several benefits, they have a few drawbacks too. For instance, individuals need to be tech-savvy to apply for these loans. Offline loans have provisions where the manager or an employee can assess the borrower to apply.
As a result, offline loans are widely popular amongst the aged and those who do not have access to computers or laptops or are illiterate.
Some people also prefer offline loans owing to cyber threats involved in submitting their documents online. In such cases, you might feel offline loans provide greater security.
But, consumer protection and data security has become the top priority in the Indian financial landscape thus boosting financial inclusion. The kind of loan you choose solely depends on your subjective preference. Remember, online and offline loans vary only in feasibility and have the same provisions and interest rates.