Online or in-person: What’s the better way to get a Personal Loan?

Digitalization has changed the face of the economic and financial scenarios across the world. It has become simpler to initiate and execute financial decisions instantly. All transactions like purchase, transfer and even lending can be done in no time.  

When taking into consideration seeking a personal loan, there are two options available to the borrower– one, is the traditional route that involves visiting a bank and carrying out all legal formalities and paperwork in-person; two is applying for a personal loan online, which is a more accessible approach that grants you the required remittance almost overnight.

Before we deep dive into which method is more rewarding and convenient, we need to consider certain underlying factors that would majorly affect one’s decision about loan seeking.

A need for a personal loan may arise due to various unforeseen circumstances, where huge amounts of liquid cash may be required for meeting financial emergencies beyond our control. Hence they are generally unsecured and acquired at a pretty high rate of interest in comparison to other forms of business loans.

Apart from traditional banks, peer to peer lending is one of the most contemporary approaches when seeking a personal loan. These are an online platform where borrowers meet lenders on a common stature. Exchange of money, as a loan, then takes place if their requirements match. In peer-to-peer lending, there are two sides to the coin.

One group of people who invest in the aggregators’ platform as investors and reap the rewards in the form of interest. The second are those who seek a loan from this pool of investment at a defined rate of interest.

Peer-to-peer lending can be easily applied online without fighting tons of application forms. Although your loans are from an individual investor, you will only have to connect with a P2P Lending platform like i2iFunding. This form of lending also does not expect any collaterals and most importantly takes very little time to execute.

If you are to take the conventional route of physical banks or financial institutions, the entire process is highly time-consuming, may involve a lot of paperwork and bureaucracy. There is also a worry of discrimination from the people of the bank or the fact the payments take weeks to reflect in your account. However, some find it hard to turn an online platform, which is why one must depend on a reliable company with multiple testimonials.

In a nutshell, there are certain questions which a borrower needs to ask himself before deciding on whether he wants to opt for an online loan procedure or an in-person personal loan deal.

Would you pay for personalized loan services?

While a brick-n-mortar bank enables you to put a physical location to the source, they are all tied up in bureaucracy so the location offers paltry value. However, online transactions may deprive you of human interaction. One the other hand it is much easier to process your information online and see honest and immediate offers. However, it should be noted here that peer to peer lending platforms levy minimal operational costs to the borrower.

How fast do you need the money?

Internet presence quickens the loan application procedure and may enable you to get your sanctioned amount much faster. The approval rate through these mediums accelerated in comparison to the traditional methods of getting a personal loan.

This facility is absent in the case of offline or in-person loan applications. So, if you’re looking for someone who can fund you on a shorter notice, then online lenders like i2iFunding would be the most favorable alternative.

Are you comfortable in applying for, and managing, a loan online?

Most peer to peer lending technology today is as simple as using any other app on your phone. If you are able to access messages on your phone, this is also a simple streamlined process.

Applying for an online personal loan would involve the sharing of your information electronically. This involves most of your financial information. Hence, you must verify the legitimacy of the online lender, before you execute the process. 

Also, for people who are not tech-savvy, the simplistic interface as well as the chatbox option where you can interact with a representative of the platform, makes it much easier to apply as well as manage a loan. All these perks make peer to peer lending platforms an obvious choice when it comes to important financial decisions such as applying for a loan.

Where can you get the best loan?

The prime criterion, when looking for a personal loan, is the best rates, fees, and repayment terms. So look for options that make the best fit for you. With an online loan, this litmus test can be done easily on your phone. But if you lean towards physical banks, then it is best to meet the loan department in person and weigh your options.

Final thoughts

Online personal loans may work out to be very convenient in applying and availing of a lower rate of interest, however,  it is incommodious to trust. Which is why you must find an authenticity, online lender. Where traditional banks seem more reliable and trustworthy, their procedures may be time-consuming and urge multiple visits.

One of the best options in such cases is peer-to-peer lending through reliable online portals, like i2ifunding, that offer quick loans at the most competitive interest rates and no hidden charges. Remember to opt for a personal loan through a channel that suits your requirements and options the best, and not have your running in circles.